The Nonprofit FAQ

Does anyone ever say 'no' to a gift?
A reader of NONPROFIT (see http://www.rain.org/mailman/listinfo/nonprofit) asked:

"Does any organization refuse contributions based on the donor's moral values or other criteria?"

Jayne Cravens, Online Volunteering Specialist, United Nations Volunteers (see http://www.unvolunteers.org) responded:

I have turned down a donation once. It was from a LARGE nonprofit organization that wanted to donate money and software to an organization that I volunteered for as an advisor. Specifically the gift would have been for an annual event we put together that is central to the mission. The tradeoff, however, was that the prospective donor wanted their name on the event "Blah blah presents..." and those participating in the event could ONLY use this organization's software. That went totally against the mission of the organization, so we said no. The next year, they gave the donation of cash, no strings attached.

Mission drives all. Your organization should come up with written guidelines on what would be the kind of donation that would go specifically against the mission of your organization. Then you have written reasons for saying "no" that won't sound arbitrary (we don't like you, so we're saying no).

See also the discussion of gift acceptance policies at http://www.idealist.org/if/i/en/faq/1063-208/332-78 [— Ed.]

Another reader commented:

We have discussed the position that it does not matter where the funding comes from as long as we are an upstanding charity helping the community.

Jane Garthson, Mills Garthson & Associates, Toronto, disagreed and expanded on the considerations that should go into developing a policy:

Many do take that approach, but it should be after careful consideration of what your options are. I am asked about this quite often, and most organizations have some types of corporate support that they turn down. It is best to decide before a cheque is being offered, and especially before some well-meaning volunteer solicits the donation!

As others have said, consider your mission. Will the good the money will do outweigh the harm that may come from accepting monies that violate your values? The potential harm includes increasing those who need your service (e.g., more problem gamblers arising from casino operations that trumpet their support of your organizations). Will it turn off existing donors and volunteers? Will it deter other potential corporate supporters? Can you successfully communicate your reasons for accepting the funds?

I suggest you focus on the values of your organization. The term "community values" is too vague to meet your specific needs, and community members likely agree on very little beyond hating child porn and murderers.

Cathy S. Rosset, Operations Manager, Rocky Mountain Insurance Information Association, added this further thought on 7/2/04:

Here's another factor to consider.

Sometimes those major corporations employ a good deal of an organization's constituents. And how might those employees feel if they learned the organization they use, depend on, or perhaps patronize (depends on what the organization is all about) turned down funding from their employer? In researching corporate foundations, I found many support programs that likely serve their employees in some way. I suppose it depends on the circumstances, but just another factor to consider because accepting or not accepting a donation can impact relations with a community at large - not just some corporate directors.