Peace of Mind During the Giving Season

THE SCENARIO

The end of the year is quickly approaching and Stephanie is looking for a place to donate. She wants to donate towards her passion, medical research.

Joe is fundraising for a new research facility in town and approaches Stephanie to ask for her support of this project.

Stephanie wants to support the project and gain tax benefits with her end-of-year donation. However, she also wants to ensure her donation is processed correctly and that the organization will use her gift as intended.

Stephanie wants to receive proper documentation for her taxes and she is curious if Joe will make a commission from her donation. Fortunately, she can ask questions to put herself at ease with donating to the research facility.

Professional fundraisers, like Joe, welcome questions and want to provide answers that give donors confidence in their decision.

This hypothetical story reveals questions donors regularly ask at this time of year as they consider end-of-year giving. Fortunately, the Association of Fundraising Professionals (AFP) provides a Fundraiser Code of Ethics and a Donor Bill of Rights that guide fundraisers and organizations while fundraising.

The Code of Ethics ensures that all fundraisers represent services and programs honestly, and that information is kept confidential. Fundraisers and organizations must accurately and correctly use solicited funds with the donor’s intent and communicate the use and management of funds back to the donor. Organizations must follow IRS regulations regarding proper documentation for taxes.

Finally, all donated money goes to the organization; fundraisers cannot accept commissions.The Donor Bill of Rights provides additional assurance for the donor.

The donor gets to select how the organization uses their gift and has the right to know that the organization will handle their gift respectfully and confidentially. Donors also have the right to ask questions and receive prompt, honest answers.

THE CONCLUSION

As a professional fundraiser, Joe is expected to be prepared for Stephanie’s questions. He should provide the timeline for the project, explain that he is a staff member and does not receive a commission as it is against the Fundraiser’s Code of Ethics, and further confirm that Stephanie’s donation will go to the research facility, as that is her intention.

Joe will report to Stephanie on the building progress of the new research facility and will send an acknowledgment of the donation for tax purposes. He will also share the organization’s 990 and annual report with Stephanie and that he adheres to AFP’s ethical guidelines.

At ease with the answers to her questions, Stephanie makes a generous donation to the new research facility.

As you consider making gifts to organizations this holiday season, we encourage you to ask questions that give you peace of mind that your donation is making the impact that you desire.