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Guest Post by John Martin. John is a philanthropy practitioner (Chartered Advisor in Philanthropy®) with 25 years of nonprofit experience, including 19 years of fundraising & development leadership in higher education and an additional six years with a grant making charitable foundation. He teaches university courses in Fundraising & Grantwriting, Nonprofit Leadership, and Nonprofit Marketing.
What’s a nonprofit organization to do when a potential gift from a donor is either only remotely useful, of questionable value, or potentially harmful to the organization?
Across the 25 years of my nonprofit experience, I have seen donors offer some
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John Martin, Ph.D (c)
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pretty unusual gifts. Most were unexpected. Many proved helpful and were put to good use. One example was the offer of a nearly life-size cast plaster bust of Felix Mendelssohn – given to a college without even a single music major! The statue was accepted, however, and became an iconic, ambiance-boosting figure in the library.
I also once prepared a receipt letter for a gift of watermelons – enough to feed the entire football team! They were “put to use”, just before they disappeared.
One supportive donor had in mind to give us a parcel of land just off the main railroad track through town, a couple blocks from the train depot. Unfortunately, some environmentally risky activity occurred in the property’s past, and it would never have been wise for us to accept that gift. Having a board-approved gift acceptance policy in place helped us say no to the gift without offending our kind donors, who simply wanted to advance our mission.
The Council of Nonprofits concurs that a written gift acceptance policy helps to manage donor expectations and guide staff members. Having such a board-adopted policy in place can help alleviate awkward scenarios. Perhaps the potential gift runs counter to the organization’s own values. Maybe the gift would require ongoing management or an operating investment beyond what the organization could bear. Most simply, a Gift Acceptance Policy allows for the development staff or executive director to have a realistic discussion with donors about the types of gifts that ARE or ARE NOT useful.
When considering formulating your own Gift Acceptance Policy, remember this:
- One size does NOT fit all: While some of the standard wording addresses tax code or other standardized gift language, much of it needs to be customized to the charitable reality of your organization.
- Determine the audience: Will your policy primarily be a guide for donors or will it be most useful to guide the conversations of staff and board members as they talk with prospective donors? Either way, consider making the policy available on your organization’s website for added transparency.
- Set parameters around conditions: Determine under what conditions a potential gift warrants additional internal scrutiny, including a review with legal counsel. Parameters help immensely if the gift is complex or borders on the unacceptable.
- Establish an internal review process: Outline who has the authority to deviate from the policy. Consider commissioning a task force of individuals with expertise and experience to evaluate such gifts as they arise and decide whether or not to accept them.
At the end of the day, the organization’s board should consider the policy, review it, understand it, and legitimize it by making it an officially-adopted operating policy.
Numerous sample gift acceptance policies can be found online, and I am happy to offer a sample as well: John’s Gift Acceptance Policy .
Adopting a Gift Acceptance Policy is a nonprofit organization best practice. But, putting one before the board and having it adopted and implemented may be out of your comfort zone. However, with some basic research and a little help to make it uniquely yours, having a Gift Acceptance Policy that meets your needs will make giving easier for both your organization and your donors.
John
