FUNDRAISING | Re-gifting is Not an Option When it Comes to Fundraising

publication date: Jun 14, 2023
 | 
author/source: Cindy Carson, CFRE

“Be careful what you wish for.”
“Always be grateful and respectful when receiving a gift.”
“It’s better to give than receive.”

We all know these “rules” of gift giving and, yet (we’ve all been there) when you open a quirky gift from your mother-in-law or distant friend there’s that uneasy feeling of accepting a gift that we don’t really want or need. The “rules” dictate that we smile politely and project gratitude while quietly thinking that the gift will go into the re-gift pile at the top of the closet.

Re-gifting is not an option when it comes to fundraising, and any experienced major gift officer will know that gift acceptance is serious business. From the outset—most donors, board members, and senior leadership are thrilled to present a “valuable” non-cash gift to the development team—and rightfully so, it’s a gift right? Unfortunately, some “gifts” become time-consuming and irritating; effectually a gift-of-regret that make you wish you had graciously declined.

Outrageous gifts

I have worked with organizations and clients who accepted outrageous gifts and have accepted a few “regrets” of my own. I watched my boss at a hospital foundation spend countless hours navigating through thorny conversations about a gifted antique car. Accepting the gift, working through appraisals, wading through CRA language to understand how to receipt the gift, selling the car and finally the conversation of informing the donor the car was being sold added up to hours of stress to the donor and the development team.

At this same charity, the hospital was gifted the LP record collection from a local radio station whose owner had sold the business to a larger media conglomerate and then passed away shortly thereafter. Another difficult situation erupted. The massive LP collection included thousands of records. Finding valuable real estate within a hospital to store this gift impacted the foundation staff, the CEO and the hospital building Maintenance Manager. who had to relocate the LPs several times. To say the least, the gift was a headache. The development team could not find a buyer (and we tried!). Anyone who was remotely interested would pick through the bookcases of the LPs, holding staff hostage to the time it would take to rummage through the score of records.

We learned a hard lesson, and yet those valuable non-cash gifts continued to show up—the most notable were gifts of art.

Many well-intentioned individuals wishfully think the art stored in the attic, or the print that has been slightly water-damaged must be valuable. The owner sees an item of beauty that (surely) any public institution would be grateful to receive. Here’s the thing—art is subjective and rarely valuable. I’ve encountered donors who wanted to donate: a 1975 Olympics poster, artistic nudes, wildlife images and landscaped watercolours. Inheritance belongings often inspire nostalgia that no one feels good about tossing in the landfill. A charitable donation naturally seems like a good and noble option.

The reality is that most charities are simply not equipped to accept donated items or estate belongings, no matter the perceived value.

Thank you but no

So, how do we graciously decline a gift without offending our donors? Three magical words “Gift Acceptance Policy” can become a Development Officers’ best friend and absolute life saver.

A solid gift acceptance policy will save you those awkward moments and uncomfortable conversations. A good policy should address:

  • gift recognition,
  • naming opportunities,
  • restrictions that are pertinent to your organization’s financial management team e.g., pledge payments, any limits of estate gifts,
  • that gift receipting will be in compliance with CRA guidelines.

Moreover, gift acceptance for non-cash gifts of art, jewelry, and antique cars should include a process that requires the donor to sign an agreement stipulating that the charity has the option to keep, sell or dispose of the gift. This process and explanation of your gift acceptance policy will typically stop gifts-of-regret.

What was your worst accepted gift story? And how does your organization handle those offers of donated items?

My personal favorite was an estate bequest that included a gift of jewelry; beautiful engagement and wedding rings. Little did I know, the third part of this “gift” was family drama in the form of a second marriage. Endless phone calls from step-children, aunts, and distant cousins offered a constant stream of too much information. While I look back on this experience with a grin, the appraisal and receipting process came with its fair share of red tape too. My advice is to be extremely selective when these types of donations land on your desk.

Here are a few other tips that may help navigate the unexpected factors of wildcard gift acceptance.

  • Consider if your policy needs to address acceptance of part of a gift, versus the full gift (as was the case of the bequest and jewelry).
  • Be transparent that your organization has a gift acceptance policy. Post it on your website.
  • Educate your Board on why a gift acceptance policy is needed, and ensure they understand the specifics to your organization’s policy.
  • Turn your gift acceptance workshop into a “what-if” role-playing exercise with your board.
  • Gift acceptance policies should address any guidelines that are in line (or in conflict) with your organization’s values.
  • Ensure that your policy includes the instance of a conflict of interest.
  • Naming opportunities should be very specific, addressing a time limit and details around relocation or maintenance costs.
  • Ensure the policy addresses who pays for appraisals and legal consultation, etc.
  • Most importantly – ensure your organization has a gift acceptance policy and update it regularly.

As the youngest of 13, Cindy Carson is a self-professed relationship negotiations expert and survivalist. Having worked as a Fundraising Development Executive in a wide range of fields from healthcare, arts, and environmental causes, Carson’s 23 years of leadership experience in the charitable sector has led to some pretty interesting stories and experiences. ccarsonconsulting@gmail.com



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