The Nonprofit FAQ
| What is a gift acceptance policy? |
| Unrestricted gifts of cash are always welcome. But what about a rare South American orchid -- very valuable but very fragile? Or a suggestion that a large bequest might be made if the organization would only change its name to honor the prospective donor...now? (What, exactly, are you going to do with that orchid? Does caring for it -- even until you find a buyer -- fit your mission? And what if the prospective donor changes his mind, or his will, long after the stonecutters have finished engraving his name above the portico?) Probably the most important thing a gift acceptance policy does is to provide a backstop to the volunteers and staff who are involved when something out of the ordinary occurs. With a gift acceptance policy on the books, it's easier to say something like "Well, I don't think that situation has ever come up before; I'll need to look at our gift acceptance policy and maybe get approval for your idea before we can go any further." If the donor's idea of a way to support your work is really out of line, then it will be easier to get back in touch with the message that the proposal doesn't fit the established guidelines, rather than having to brush the offer aside as a matter of personal judgment. Plus, of course, the fact that the policy exists may offer an opportunity for a creative discussion about how to meet the donor's objectives without stretching in uncomfortable directions. Usually, a gift acceptance policy is a written document that has been developed in light of the organization's mission and circumstances. It will be designed to protect against getting involved in situations with too much risk, too much difficulty, or too many conditions. The board will consider and adopt it after examination of the issues, which will be more or less complicated depending on the organization, its potential donors, and its work. Many policies will require getting advice from an experienced lawyer whenever there is anything complicated about a proposed gift. Donors sometimes want to set very specific conditions about how their gifts are to be used, not only tomorrow, but far into the future. And there's always the possibility that the conditions on a new gift will conflict with long-standing policies or the requirements of a gift that's already been accepted, and used. Help with developing a gift acceptance policy can be found at:
— PB |