Gifts In Kind International takes the misuse of donated products very seriously and therefore takes a preventive approach to product security. The first step in the process is ensuring that all charities participating in donation programs have been thoroughly vetted against Gifts In Kind International’s thorough standards, and any specific philanthropic guidelines provided by donating companies.

I. Qualifying Charities/ Nonprofit Organizations to Receive Goods
II. Internal Monitoring and Review

I. Qualifying Charities/ Nonprofit Organizations to Receive Goods
All organizations requesting donations are thoroughly screened and reviewed by Gifts In Kind International to ensure that the organization is qualified for the program and meets the eligibility guidelines according to the following process:

1. Each organization must complete the program application (donation request form); if they are not already registered with Gifts In Kind International, they are required to attach their tax-exempt status documentation.

2. Gifts In Kind International will verify the tax-exempt status both through document review, and through a variety of databases including the I.R.S. and Guidestar.

3. Once the tax-exempt status has been authenticated, Gifts In Kind International will perform a secondary review to determine if the organization is in good standing. This secondary review includes researching the organization’s agency name, contact person’s name, Board Members’ names, list of affiliates and locations of other offices through a variety of regulatory compliance solutions, including Attus Technologies’ WatchDOG™.

Qualified Charities Registered With Gifts In Kind International
A network of more than 150,000 nonprofits worldwide receives product contributions through Gifts In Kind International.

Charities/nonprofit organizations qualified to receive contributions must:
• Be an organization as described in Section 501(c)(3) of the Internal Revenue Code (or equivalent) or a recognized Indian Reservation, and be exempt under Section 501(c)(3), and not be a private foundation (other than an operating foundation as described in Section 4942(j)(3)) or a Canadian charity registered with Revenue Canada.

• Use the goods solely for the care of the ill, needy or youth.

•Use the goods for the purpose of the organization, which makes it tax exempt and only for the purpose intended.

•Not transfer the goods in exchange for money, property or other services.

•Maintain adequate books and records of this donation as required and make them available upon request.

Only organizations that have been authenticated and reviewed are included in the program.

II. Internal Monitoring and Review
Once charities begin to receive donations, Gifts In Kind International carefully monitors activity to ensure that all standards and guidelines are met. While there are numerous methods in place to accomplish this, Gifts In Kind continuously seeks additional ways to strengthen its ongoing stewardship for its generous donor partners. Gifts In Kind International completes both internal and external monitoring and review procedures and activities, which are outlined below.

• Gifts In Kind places limits on the amount of product that can be received by any single charity.

• Each time a donation is requested, the executive director of the requesting charity must sign a donation request form, which specifies that the charity will use the donated items for their charitable purpose, they will not trade, sell or barter the items, and they must keep records and make them available upon request.

• Gifts In Kind International routinely requests distribution plans and final reports from recipients. Information provided is randomly audited to ensure accuracy.

• Routine review of charity donation history. The type and quantity of products requested is compared to product restriction guidelines, the organization’s size, operating budget, mission and scope of work. Abnormal activity is further investigated.

• During the donation approval process, if a charity requests a large-volume donation or their request does not meet the scope of their program, senior management approval is required prior to processing the request.

• Gifts In Kind International will only ship to the organization’s physical address—no shipments are sent to residential locations.

• An annual review of all participating charities’ financial records or 990 forms is completed to ensure the organization is in good financial standing and follows all appropriate charitable financial reporting standards.

• Ongoing product security education is provided through articles in Gifts In Kind International’s nonprofit/charity newsletter and other collateral provided during the donation request and annual registration process. Product security is also a major module in the training program for Gifts In Kind® programs.

• Gifts In Kind International’s inventory system provides inventory control with the appropriate checks and balances necessary to ensure security—including routine cycle counts and a complete physical inventory annually for all items stored in Gifts In Kind International’s warehouse facilities.