Although the say “Never look a gift horse in the mouth”, I seriously began questioning the truth of this old adage a number of years back as the Fundraising Manager of a non-profit organization in Southern Ontario. One fine day a surprise $25,000 contribution cheque arrived in the mail from a newly reopened spa in our area that had been closed for several years.
Despite the initial euphoria experienced from this windfall, the spirits of our staff team were instantly crushed by what we unveiled while researching our benefactor. We learned that the new proprietors christened the spa’s revival by holding a gala fundraising dinner where they generously decided to donate the evening’s proceeds to our organization’s annual campaign. However, we also discovered that the previous owners were arrested and convicted for their involvement in a human trafficking ring.
Now even though the altruistic new owners had absolutely no connection to those horrific crimes, a strong linkage between the business and the perpetrators still loomed prominently in the minds of many in the community. Accepting the new owners’ cheque and aligning ourselves with their enterprise at that point would be the equivalent of condoning the sinister wrongdoings of the predecessors in their view.
As painful as it was, we graciously declined their selfless gesture because it did not adhere to our “Gift Acceptance Policies”. We estimate that our organization would have lost $50,000 annually from existing donors who would have immediately halted their support because they objected to accepting a gift from what they still perceived as an immoral source.
Yet we also thanked the spa profusely for their kind act and assured them we knew they had no association with any malfeasance. In fact we made it a priority that our relationship with the spa remained intact. We went so far as to encourage anyone affiliated with our sphere of influence to patronize their establishment. The issue was that not enough time had passed for the entire community to realize unequivocally that the spa’s new owners were virtuous people who had nothing to do with these evil crimes. Until then the risk of donor loss for our organization remained dangerously high.
The moral is every non-profit group, charity or community organization should possess an official Gift Acceptance Policy that defines from whom, what type and under which circumstances any donation, grant, in-kind contribution or commitment of volunteer time may or may not be accepted. Generally a gift should never be accepted if:
It will compromise your organization’s ethics, values, beliefs, moral standards or code of conductt:
The funding source or donor is engaged in any form of criminal activity;
It will not advance your organization’s mission and vision;
It will be used for costs or expenses associated with programmes or initiatives that are outside of your organization’s mandate;
The funding source or donor demonstrates abusive behaviour or uses abusive language towards any representative of your organization or anyone within your organization’s sphere of influence;
The funding source or donor engages in discriminatory practices, conduct or behaviour of any kind;
The funding source or donor is involved in any form of scandal personally or professionally;
It will place your organization in a compromising position fiscally or financially;
There may be a potential conflict of interest such as the expected receipt of a political benefit or personal favour by the funding source or donor, and/or;
Receipt of the gift will alienate or disenchant a significant portion of your organization’s donor base for any specific reason.
An effective Gift Acceptance Policy also outlines your organization’s gift review. processing, receipting and recognition practices. For grant-makers reviewing funding proposals, strong consideration is frequently given to submissions from organizations with established Gift Acceptance Policies. It demonstrates an organization’s commitment toward transparency and the optimal usage of all resources for programming and service delivery purposes in pursuit of its mission.
Possessing a Policy signals that your organization is in the habit of exercising due diligence in all areas and strongly values attention to detail. It shows that you are highly functional, organized, and structured by having sound gift and resource management practices. Investing in community projects undertaken by organizations operating in this manner would be regarded as a wise and safe decision by many funders.
Overall, a Gift Acceptance Policy is a statement that your organization respects and values the involvement and contributions of all stakeholders with whom they collaborate to create positive change in the lives of the people they help. Thus looking a gift horse in the mouth is sometimes necessary to ensure that it does not undermine our ability to make the world a better place.
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In the meantime, the best of luck with your grant-seeking pursuits and be safe.
