Can our 501(c)(3) organization retain the right to refuse a contribution identified specifically for our youth program from a company whose business practices, based on member complaints, are not in keeping with our organizational standards, are not in the best interest of our organizational goals, and are not in the best interests of our members?
Yes. Although somewhat unusual, it is not unheard of for a charity to decline a contribution from an individual or organization with which identification would not be advantageous. But the question may not be limited only to whether or not to take the gift.
As part of a law and ethics program for the local Association of Fundraising Professionals introductory course, my co-presenter has for years raised the ethical question of whether a hospital should accept funds from a reputed mob boss to build a new building to be named after the donor. The students have to use an ethical decision-making model to weigh whether or not, and if so, under what conditions to accept such a gift. Their opinions always vary widely, and the results always change after an in-depth discussion of alternatives.
Good gift acceptance policies can raise red flags for considering whether to accept gifts from certain types of donors as well as red flags for certain types of gifts.
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