If you’re undertaking major gift fundraising, you need a gift acceptance (and refusal) framework.
A clear framework prevents you from making decisions on an ad hoc basis, it aligns fundraisers, researchers and leadership, including trustees, and protects your charity while making fundraising more consistent.
These six steps will help you build your gift acceptance framework, so your organisation isn’t caught out.
Step 1: Agree what your organisation will and won’t accept
Review your existing governing documents and policies to make sure you understand your organisation’s objectives. Use these to identify any immediate ‘no go’ areas.
Define any industries, activities or funding sources that don’t align with your mission. Make sure you include donations, partnerships, gifts in kind, trusts, foundations and legacy gifts. Put a plan in place for restricted gifts and whether there are certain conditions you can’t accept because they would be prohibitive to delivering your mission.
Step 2: Set clear financial thresholds
Decide when different levels of due diligence are required. Can every gift be assessed in-house or are there situations when external expertise is required? Ensure the level of research being carried out is proportionate to the size of the gift.
Document thresholds that trigger an external review or escalation to your trustees to ensure they’re applied consistently.
Step 3: Decide who conducts due diligence
Assign responsibility for conducting due diligence. Does it sit with fundraisers, researchers or another team such as finance or legal? Make sure all research is reviewed and signed off so someone is responsible for making the final decision on major gift acceptance.
If your due diligence processes are changing, hold a briefing to make sure all stakeholders understand their role.
Step 4: Create research checklists
Develop standardised checklist templates for donations from individuals, companies and trusts. Decide what risks you’ll always assess; this could include:
- Source of wealth
- Reputation
- Political exposure
Use reliable sources for research and document where information came from.
Step 5: Document every decision
Record all the research that’s been undertaken. Clearly explain and document why a gift was accepted or declined, making note of any mitigating factors or discussion.
Retain evidence of your research and decision-making process to demonstrate decisions were well considered if questioned in the future.
Step 6: Review your framework regularly
Review your gift acceptance policy at least annually. Update it following changes to legislation, guidance or organisational strategy. Reassess thresholds and risk criteria as your fundraising develops, and use previous decisions to refine your approach over time.
A gift acceptance framework shouldn’t sit on the shelf gathering dust. By agreeing your principles before difficult situations arise, your team will be able to make faster, aligned decisions, and protect your organisation’s reputation.
We know that one size doesn’t fit all
What’s right for one charity might not be right for you. That’s why we tailor our due diligence support to your needs, carefully considering the way you work, your mission, vision, values and objectives. We also think about external factors like the impact a gift could have on your brand and image.
Do you have the time and methods to carry out due diligence checks? If not, we can help. Find out about our due diligence research.