Should I Accept This Contribution?
If this was posed to your organization today, no doubt you would respond with a rousing, "Of course!" As a not-for-profit, especially in today's challenging economic times, this may seem like a silly question. Not so fast, however. There are some instances when it may not make the most sense to accept that contribution.
When a Gift Goes Bad
With a contribution, the donor may place a requirement, or restriction, on the use of the funds. By accepting the contribution, an organization is also promising to use the funds in the manner that the donor has requested. Here are a few questions you should ask yourself before saying the magic word "yes":
Does this further my organization's purpose?
If a donor promises money to help fund a program that you currently do not provide, it may make more sense to suggest to that donor to contribute to a program that your organization currently provides or, if not, to consider re-directing the donor to a more like-minded organization rather than pursue an entirely new area for your own not for profit.
Are the restrictions reasonable?
In some cases, a donor may put so many restrictions on a contribution that a not for profit cannot possibly fulfill them all. Rather than dealing with the time and frustration that comes with this, it may be better to say "no thank you" and focus your talents and energy elsewhere.
Can I afford to accept this?
As funny as it seems, there are times when a contribution may cost more to fulfill than the value of the contribution itself! For example, an organization receives a $100,000 grant to provide services to the underprivileged. However, in order to achieve this result, a new building that costs $500,000 will need to be built. If the not for profit is expecting to receive...
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