Yes, nonprofits can share donor lists with other organizations, but the practice is heavily regulated and depends on three things: the type of nonprofit involved, whether donors have given proper consent, and what the receiving organization intends to do with the information. A 501(c)(3) public charity faces strict restrictions, especially around political campaigns, while a … Read more
When a donor asks your nonprofit to keep their gift private, remove their information, or stop sending mail, that moment is a test of trust. Our team works with nonprofits every week, and the organizations that handle donor privacy requests well keep donors for years. Those that mishandle them lose gifts, board members, and reputations. … Read more
Every year, hundreds of nonprofit leaders face the same question at annual report time: should nonprofits publish donor names in print, on the website, or in the gala program? It feels like a tradition you cannot break. But the rules around donor recognition have shifted, and the old assumptions do not always hold up. On … Read more
A donor cannot control how a nonprofit operates after making a gift. Once you transfer money or assets to a charitable organization, legal authority over those funds belongs to the nonprofit’s board of directors, not to you. The IRS is clear on this point: a completed charitable gift means the donor has fully relinquished control. … Read more
A nonprofit is generally not required by federal law to return a donor’s gift, but state laws and the terms of the donation agreement can make returns mandatory. In our work with nonprofit clients over the past decade, we’ve seen return requests range from $50 online gifts to six-figure building fund pledges, and the rules … Read more
Can fundraisers accept personal gifts from donors? The short answer is no. The Association of Fundraising Professionals (AFP) Code of Ethics explicitly prohibits fundraisers from accepting personal gifts, gratuities, or financial benefits from donors. This standard exists to protect both the integrity of the fundraising profession and the trust that donors place in charitable organizations. … Read more
When a major donor becomes the subject of a scandal, the phone at your nonprofit starts ringing. Our team has watched executive directors across the sector wrestle with this exact problem for years, and the stakes have only gotten higher. In , the question of how nonprofits handle gifts from controversial donors has moved from … Read more
Percentage-based fundraising compensation is widely considered unethical in the nonprofit sector. The Association of Fundraising Professionals (AFP) states clearly in its Code of Ethical Principles and Standards that it is NOT appropriate for a nonprofit to compensate a fundraising professional based on a percentage of the money raised. This position is shared by the National … Read more
No, a board member generally should not receive a commission for fundraising. While percentage-based fundraising pay is not explicitly illegal under U.S. federal law, every major fundraising association — including the Association of Fundraising Professionals (AFP), the American Association of Fundraising Counsel (AAFRC), and the National Committee for Planned Giving — prohibits the practice. The … Read more
I have worked alongside nonprofit development teams for years, and the question of whether an organization can pay a finder’s fee for donations comes up almost every time a board discusses fundraising strategy. The short answer is yes, it is legal in most cases. The longer answer is more complicated, and it is where most … Read more