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Gift Acceptance Policies
When offered a donation, the immediate reaction of most organisations is to gratefully accept.
This might not always be the best decision.
What if the gift comes from a dubious source? What if the donor wants to use the gift to further his or her own agenda? The institution runs the risk of damaging its reputation, or it might be accepting a gift that costs much time and money to administer.
It is sensible to have a policy in place that defines what gifts are acceptable and what the institution’s obligations (if any) might be should it accept a gift. Gift acceptance policies make it easier for an institution to accept a gift with a clear conscience and just as easily reject an unsuitable gift. They reduce risk and should be one of the first things an institution develops as it sets the boundaries for the fundraising activity.
Developing a gift acceptance policy is a chance for an organisation to discuss how to handle the practical issues that can be triggered by certain fundraising scenarios.
Working through various scenarios is a useful exercise for both fundraising and other senior staff and helps develop a fundraising culture that adopts a sensible, professional approach to gift acceptance.
The process is closely related to ethics, and it is often useful to have input from independent advisers who can bring an objective perspective.
Developing a gift acceptance policy can strengthen an institution’s internal gift administration procedures, but both policy and procedures benefit from regular reviews to ensure that they are compatible.
First, a gift acceptance policy should specify who is responsible for the policy’s implementation and administration. This is normally handled by a committee of senior staff (both fundraisers and non-fundraisers) and independent representatives. It is also advisable for the committee to include representatives from the financial and legal sector.
A policy might also contain:
Without a gift acceptance policy in place, your institution may be forced to react quickly and without time to consider all the possible ramifications when it is offered a major gift. In such circumstances, errors in judgment can be made. It is far better to adopt a pre-emptive approach and establish a strong gift acceptance policy from the start. Your institution will appear more professional, both donor and recipient will have a better fundraising experience, and the risks to both parties will be considerably reduced.
Key questions you must be ready to answer
Policies and procedures
Cultivation of major gifts
Cultivation of corporations
Cultivation of government and lottery funding
Legacies/Planned Gifts/Bequests
Stewardship Activities
Gift accounting and reporting
Gift recognition policies
A donor wishes to donate a valuable art collection to your institution.
A former student wishes to leave a large bequest to your institution to support a scholarship programme for underprivileged children, but much of his wealth comes from investments in clothing factories that may have exploited child labour.
CASE provides perspectives on the ethical principles behind the acceptance of gifts and ethical decision-making in fundraising, including responses to frequently asked questions (e.g., How should universities make decisions about whether or not to accept donations? What due diligence should an institution undertake before accepting a gift?).
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