Ethical Fundraising

The ethics of fundraising have been in the news lately due to Jeffrey Epstein and his gifts to major nonprofits that knew about his reprehensible behavior. So it seems appropriate to talk about how nonprofits can and should fundraise in a responsible manner. 

Here are a few basic lessons for you:

Never accept a donation from Jeffrey Epstein – or anyone like him. Period.

Never let the size of a donation blind you to inappropriate quid pro quos. When I was the ED of small nonprofit community center, I had a well-to-do businessman approach me about a gift that would have funded our organization for six months. In return, he asked a “small” favor – that I publicly endorse his very controversial application to the local planning department. I said no. You should too.

Never accept a donation that is meant to fund a donor’s specific pet project. By this I don’t mean a gift to support a program you already do. My example – another wealthy donor “generously” offered a gift that was specifically and only for a one-time project of hers. This would have allowed her to have fun, get staff support for free, and receive a tax deduction.

Always respect a donor’s request for anonymity. One of the very worst things you can do is reveal the name of a donor who does not wish to be named. Only the ED (and possibly a Board member who has been a primary contact) should know the donor’s name and amount of donation. Maintaining this over time can be tricky, especially through staff changes, so be sure you have a system in place to pass information on to a new ED (and no one else). And if a donor puts their money into a blind trust, the name cannot be shared at all.

Always maintain confidentiality. When I left my longtime ED job, I was immediately pursued by the ED of a local nonprofit who wanted recruit me for their Development Committee – clearly hoping I would share information about donors. I laughed in her face and said absolutely not. Make sure you have a clear confidentiality policy in place for staff – and for your Board members.

Always thank your donors promptly and correctly. Get it right – name, salutation, how they want to be contacted, how often they wanted to be contacted. And if you make a mistake – I certainly did, and you will to – immediately apologize and rectify the error.

One final personal story: my father died of Alzheimer’s. And the way I knew something was amiss was when I discovered he had donated $5,000 in three months time to the Ayn Rand Society (he was a lifelong Democrat), Father Joe’s Home for Christian Boys (we’re Jewish), as well as numerous other well-known nonprofits. He thought he was paying bills; each time he wrote a check, they sent him more solicitations. Phone calls, letters, even a threatening missive written by my lawyer didn’t put an end to this. Finally, I simply stopped letting him get his mail (and he loved getting the mail). Don’t do this, ever.

Do the right thing – it’s better for your nonprofit, for the world, and your soul.