Gift Acceptance Policies

Why does your nonprofit organization need a gift acceptance policy?

Norman Olshansky: President

NFP Consulting Resources, Inc.

Decisions related to acceptance of out of the ordinary donations and pledges can be among the most challenging issues nonprofit professionals and leaders have to address, related to fundraising.

Have you experienced any of the following issues?

How do you deal with a donation from someone who is well known and of “ill repute” in the community who has made their fortune from being a slumlord and now is offering you a lead gift to your capital campaign with the proviso that the building be named after him?

How do you avoid accepting a gift of real property that may cost you more in the long run than it is worth due to zoning, structural concerns, carrying expenses, legal or tax issues?

What “strings” attached to gifts related to its use, recognition, investment, etc. are you willing to accept?

What type of assets are you willing to accept? (collectibles, art, autos, boats, jewelry, privately held stock, real estate, etc.)

Are you willing to accept life insurance policies which may require future premium payments?

Are you willing to accept “split interest” gifts?

Do you sell all stock donations immediately, hold them as investments or make decisions on a case by case basis? What guidance is given to those making day to day decisions?

Who in your organization can make a decision not to accept a gift?

How do you recognize testamentary gifts, especially those which may not materialize due to the terms of the gift? What about a testamentary gift where the donor or his/her family is able to change the beneficiary or amounts at a future date?

When there is a need to make an “exception” what process is used to authorize a decision which may not be covered clearly by established policy or practice?

These and similar issues occur more frequently than one might expect as part of the ongoing fundraising and development efforts of nonprofits. The type and frequency of these issues may vary from one nonprofit to another, but all nonprofits engaged in fundraising need to address gift acceptance.

If you do not have a policy in place to establish guidelines, practices and procedures for your staff and volunteers, you are leaving yourself vulnerable to problems, potential conflict with donors and liability to your organization. 

There are many sample policies online which can be of assistance to you if you do not already have an established policy. If you do have one, it should be reviewed to make sure it covers conditions that could impact your organization. Review of policies and input from legal counsel can be most helpful.

The CEO/Executive Director should also seek input from fundraising staff and volunteers. The CEO/Executive Director should then engage the Board Chairman for input so that a policy, or revisions to the existing policy, can be taken to the Board of Directors for review and approval.

Do not wait until you have to deal with issues related to a specific gift before you develop gift acceptance policies! Make sure you have an established gift acceptance policy and committee to which staff and/or volunteers can bring unique concerns which need to be addressed. By planning, thinking and acting smart, you can minimize, if not avoid, many of the problems other nonprofits have faced in the past.

Is the Use of Social Media for Nonprofits Worth the Time and Effort

By Norman Olshansky: President NFP Consulting Resources, Inc.

We are hearing a lot about the new technology and importance of social media such as Facebook, Twitter, Linkedin, Pinterest, etc. After all, social media was the powerful tool used to overturn dictators and to bring public awareness to critical issues such as child soldiers and Joseph Koni. Its use was also extremely effective in obtaining financial responses to the earthquake in Haiti and natural disasters elsewhere. So, given the success of viral marketing through the internet and social media, why even ask the question?

Is your nonprofit using social media effectively? What is the return on investment on the use of social media, given the time it takes to post, read, respond, etc.? How much time is taken up by staff and volunteers, which could be spent in more productive activities?

The simple answer to the initial question, (Is the Use of Social Media for Nonprofits Worth the Time and Effort?) is, …….“it depends”.  

Nonprofits use social media for many different purposes among which are:

1. Building public awareness

2. Adding contacts for future cultivation

3. Spreading information about the nonprofit’s mission

4. Providing information about blogs, upcoming programs, activities, classes, training, webinars, events, performances, etc.

5. Posting job openings

6. Seeking feedback to discussions and questions

7. Encouragement of contacts to go to the nonprofit’s web site for more information

8. Requests for information, donations, volunteers, etc.

Social media fundraising is in its infancy. Those who have been successful have built their network of contacts, followers and “friends” over many years and are able to reach thousands of potential donors quickly when an emergency or compelling case for support arises.

Typically donations, obtained through social media requests, result in small donations ($10-$100). Depending on the number of gifts, the total could be significant. The keys to success are the case for support and size of the potential pool of contacts, friends, and followers. The strength of social media is in the ability to create a viral message, one that your contacts will want to share with their other contacts.

While older adults are the fastest growing users of social media, younger people are still the ones using social media the most as a major form of their communication. Older adults have the greatest giving capacity but young people are the future and key to long term sustainability.  Major gift fundraising, which accounts for 80%-90% of all funds raised by nonprofits (especially for annual, capital and endowment gifts) requires personal cultivation and relationship building. While social media can be one tool used towards that effort, the more personal effort is preferred.

Most nonprofits have not developed a system and ongoing plan that has resulted in significant fundraising via social media for annual operations.

The financial return on investment using social media for fundraising  is still minimal compared to other methods of fundraising. Nonprofits, which are not using social media, need to do so to the extent they are able. However, time spent on social media should not be allowed to take away from the time spent on major gifts (prospect identification, cultivation, face to face solicitation, and stewardship). Consider social media as a way to be positioned for the future.

If you are just getting into the use of social media within your nonprofit, think of it as primarily being a tool to provide a return on image, or a return on engagement rather than a return on investment (human and financial resources).

There are many new ways to analyze the information available through social media. Each have ways to look at metrics to analyze usage, impact and characteristics of contacts and connections. Those who are serious and look at social media as just one part of an overall organization's strategic plan will be more successful than those who use it primarily as a marketing bulletin board.

It’s easy to put in a lot of time and effort into social media, but for it to be worthwhile one needs to evaluate outcomes; what happens as a result of your efforts that will enhance your organization’s mission and sustainability.

What has been your experience? How can social media be used effectively by all-volunteer or smaller nonprofits? What would you add to this discussion?

Great new resource now available

Want to learn more about nonprofit leadership, management and fundraising?

Involvement with nonprofits, either as a volunteer, professional or donor, can be a very gratifying and life enriching experience. In organizations that are not well run, those experiences can be negative and stressful. Nonprofits are a special type of corporation. While they do not make money for stockholders or owners, they have to be run effectively and efficiently if they want to accomplish their mission, provide a community benefit, expand and retain staff and volunteers. Yes, while they are unique, they ARE businesses that require proper leadership, governance, operations and support.

If you are involved in nonprofits, or want to get involved…..either as a volunteer, leader or professional….a new book is now available that is just for you! “You and Your Nonprofit”, published by CharityChannel Press is a collection of short articles with practical advice from people who have been in the trenches. It is more than a “how to” book. Each article has been written with the goal of providing tools that can be easily adapted for use in your nonprofit. Over 50 contributing authors from the U.S., Canada, England and Australia have participated in this publication. All are seasoned professionals and nonprofit leaders who have learned their craft over many years “in the trenches” as well as from participation in professional educational programs. A unique aspect of the book is the ability to connect with each of the authors and establish a dialogue with them directly. Each article has a special email address through which authors can be contacted by readers.

The goal of the book is to focus on readers who are relatively new to the nonprofit sector. The editors asked authors to write for readers (professionals, leaders and volunteers) who have been in the field for less than ten years. They wanted readers to find the articles not only informative and interesting, but also practical examples of best practices. They wanted readers to be able to take ideas and suggestions from the articles and be able to implement them within their own organizations.

The editors wanted to create a book that would be more than just an anthology of essays, but, rather, a series of articles written by professionals who have real life experience and have been in the trenches of nonprofit work. They did not expect the book to be an all-inclusive book on nonprofit leadership, management and fundraising, However, they believe that the business of nonprofit management, leadership and fundraising is constantly improving because people like the authors (and hopefully the readers) are willing to challenge conventional wisdom and think outside of the box. They have succeeded.

Robert Carter, CFRE, Board Chair Elect of the Association of Fundraising Professionals, Board Member with the Center for Philanthropy at Indiana University and Principal with Of Counsel Philanthropy made the following comments as part of his foreword to the book:

“I have just read the book I needed when I made the decision to try the business of fundraising decades ago. This book is loaded with excellent advice and counsel as to “why & why not” and “what” and “how to.” Fundraisers, volunteers, CEOs, and all who care about this sector’s capacity to meet the needs and seize opportunities to benefit our communities, nation and world should have this collection on their desks for handy reference and guidance. This is surely the book I wish I had decades ago.”

Readers will learn about planning issues in articles about governance, fundraising, administration and marketing. They will learn about leadership and other topics in many of the articles. The authors want readers to enjoy learning about nonprofit management, leadership and fundraising and in the process learn ways to add value to their own work as people who are, or will be, engaged in the nonprofit sector.


“You and Your Nonpofit”, has been nominated for the 21st Annual Terry McAdam Book Award of the Alliance for Nonprofit Mangagement and has been recommended by Charity Navigator and the Association of Fundraising Professionals.

“You and Your Nonprofit” can be purchased at http://charitychannel.com/charitychannel-press/bookstore/productid/127/catreferrer/1420 or at your favorite bookstore.

Nonprofits and PEO's

Nonprofits and Professional Employer Organizations (PEO)

Norman Olshansky: President
NFP Consulting Resources, Inc.

If you are a leader or an executive with a nonprofit organization and are unfamiliar with PEO’s, you may want to check them out.

Personnel costs are usually among the largest expense items for nonprofit organizations. While fundraising and revenue enhancement activities are the primary keys to sustainability, nonprofits also need to constantly address areas related to cost containment. In order to preserve programs and services, personnel benefits are often the first areas to be cut. Before you make those cuts, check out the potential savings offered through the use of a PEO.

You may have heard about PEO's in the past when they were known as employee leasing companies. PEO’s are not a temp firm, a staffing agency, or placement agency. You retain full control over your employees while the PEO handles payroll, payroll taxes, workers comp, benefit management, retirement services, government compliance, and liability management. You pay them a fee, provide them with your payroll information and they handle the rest.

PEO’s provides a service that allows your organization to outsource many of your human resource functions. Their size enables them to offer a package of benefits for your employees at a much lower cost than you and/or your employees may currently be paying. There is an economy of scale that they can provide that few nonprofits can match on their own. Simply stated, when you engage a PEO, they take over the administrative and compliance components of your human resources. Nonprofits can compete with national associations and Fortune 500 companies for the benefits needed to recruit and retain quality employees.

PEO’s provide you with employee handbooks, give guidance on employee policies and work with you to make sure you are in compliance with all local, state and federal fair labor, ADA and employment regulations. PEO’s offer many choices of packages to offer your employees.

I have found that you need to have at least 8-10 employees for the direct cost saving benefits to be significant. In addition to the cost savings, use of a PEO frees up your existing staff, who handle payroll and HR, from many of their regular duties and provides you with an additional level of expertise and guidance on HR issues.

Fundraising Axioms: Simplified

10 Basic Fundraising Axioms: Simplified


Yes, science, technology and skill sets are necessary to be successful as a fundraiser for nonprofit organizations. However, there are also several very basic axioms which, if followed, will greatly increase your success.

You don’t get - if you don’t ask
Being good at providing services and programs does not automatically bring in contributions. It’s relatively easy to identify prospects who care about your mission, have great capacity and are knowledgeable about your organization. However, they are not going to become donors until they are asked. Asking can be in many forms. For major gifts, a personal “face to face” request to a prospect, to consider a suggested gift amount, provides the best return on investment. However, grants, group meetings with a general request for donations, events and direct mail, can also be utilized as a method to make an ask.

Connect to hearts and minds before you connect to wallets
People are not going to make significant contributions to an organization that is of no interest and about which they have no personal connection or feelings. The ability to secure a gift and the size of the gift will be enhanced if the donor is educated about the organization, “feels” the importance of what is being accomplished and has a relationship (directly or indirectly) with the organization, solicitor, project or program. Cultivation of those relationships provides added value to the donor and organization.

Fundraising is both art and science. Success requires both.
There are definite processes, sequential steps, ethics, legal guidelines, tax laws, accounting and other requirements that need to be followed to be successful within a nonprofit engaged in fundraising. This is the science of fundraising. Just, if not more important, is the art of fundraising which focuses on relationships, personality, leadership, engagement and follow through.

The 80/20 rule is now 90/10 and applies to fundraising.
80% to 90% of funds raised typically comes from 10%-20% of donors. Most nonprofits obtain the largest share of their philanthropic income from major gift donors. Time spent on major gift solicitation provides the greatest return on investment of nonprofit resources both human and financial. However, the most important annual funds will come from existing donors.  Do not neglect them or the importance of their gifts.  Major gift activities should not be at the expense of retention of existing donors or of the importance of new donor acquisition.

The quality of a gift is directly related to the quality of the relationship between the solicitor and prospect

Major prospects deserve personal attention. People give to people. Your relationship to the prospect has a direct impact on their gift. The more they know and trust the solicitor, the more comfortable they will be making a major gift. They need to know that they are getting accurate, current and reliable information about the organization and the impact of their giving. They also will be more comfortable knowing that the solicitor, with whom they have a relationship, is likely to be more familiar with their background, interests and abilities than would a stranger.

Avoid the ready, fire, aim temptation
Too often the desire - need to raise funds creates a sense of urgency which translates into volunteers and staff wanting to get started and solicit as many people as they can, as broadly and quickly as possible. Fundraising without a plan, organization, and discipline is an invitation to failure. There needs to be proper organization, leadership, communications, marketing, budgeting, back office systems and a well defined case for support. A campaign fundraising plan is critical and should be integrated within the overall business plan of the nonprofit. Fundraising should be conducted sequentially (top down and inside out). Initially the campaign should focus on the largest potential gifts and existing leadership of the organization. Events, group meetings and mass appeals should not be utilized until major gift solicitations have been addressed.

Leadership sets the example.

Before making their commitments, many major donors, corporations and foundations want to know that the leadership of the organization has demonstrated its fiduciary responsibilities, not only through stewardship of funds and budgets but also as donors. Early in any fundraising effort, Boards and leadership within the organization should be asked to participate as donors, to the best of their abilities. Full participation is as important, if not more so, than the total dollars raised from leadership.

You can never thank a donor, volunteer or staff member too often. They are your keys to success.

Whether it be stewardship, public recognition, ongoing communication, personal thank yous, gifts, member benefits, etc………the more you are in touch with donors, volunteers and staff in a way that demonstrates your appreciation, the more likely they will be there for you when you need them in the future.

Donors expect and deserve a good return on their charitable gifts/investments

Treat your donors as if they were major stockholders. They deserve to know how their investments in your organization are working and if the funds they have donated have accomplished the purposes for which they were given. The more you can demonstrate a good return on their investment, the more likely they will contribute in the future, and be a positive advocate for your organization in the community you serve.

Don’t do anything that you wouldn’t want to read about on the front page of the newspaper.
Nonprofits must conduct themselves ethically and appropriately if they are to maintain the trust and confidence of their supporters and those they serve. When faced with difficult decisions, nonprofits should take the moral high ground and work diligently to ensure that a culture is established that promotes ethical behavior at every level within the organization. Challenges will occur. Whether related to gift acceptance issues, donor requests for special treatment, financial management, reporting, disclosures, personality conflicts or other issues, every nonprofit will have to confront delicate and potentially controversial problems. How problems and challenges are addressed is a true test an organization’s strength and effectiveness.