Posts tagged ‘return a contribution’

August 19, 2016

Could Your #Nonprofit be Forced to Return a Donor’s Gift?

Officials at Vanderbilt University got schooled. They learned, the hard way, that nonprofit organizations cannot unilaterally void the terms of a gift agreement without returning the donation.

This is a story that keeps on giving. It provides an important lesson for all nonprofit organizations about the requirement, ethical and legal, to honor donor intent.

The tale begins in 1933 when the Tennessee Chapter of the Daughters of the Confederacy donated $50,000 to the George Peabody College of Teachers to build a dormitory named “Confederate Memorial Hall.”

Confederate Memorial Hall (2007)

Confederate Memorial Hall (2007)

In 1979, Peabody was merged into Vanderbilt becoming the “Peabody College of Education and Human Development at Vanderbilt University.”

After years of discussion, according to Inside Higher Ed, Vanderbilt decided in 2002 to drop the word “Confederate” and rename the building simply “Memorial Hall.” The University took this action without gaining the approval of the Daughters of the Confederacy or returning the gift.

After taking Vanderbilt to court, the Daughters of the Confederacy received a Tennessee Appeals Court ruling in 2005 that ordered the University to either keep the original name of the building or refund the donation … in inflation-adjusted dollars. That $50,000 gift from 1933 is now valued at $1.2 million.

As reported in Inside Higher Ed:

The appeals court unanimously rejected Vanderbilt’s argument that academic freedom gave it the right to change the name. Vanderbilt argued that the Supreme Court has given private colleges considerable latitude in their decisions. But the appeals court said that was irrelevant because the agreement to name the dormitory ‘Confederate Memorial Hall’ was between a donor and a charitable group — and the government never forced the gift to be accepted.”

In its ruling, the Appeals Court stated (emphasis is mine):

We fail to see how the adoption of a rule allowing universities to avoid their contractual and other voluntarily assumed legal obligations whenever, in the university’s opinion, those obligations have begun to impede their academic mission would advance principles of academic freedom. To the contrary, allowing Vanderbilt and other academic institutions to jettison their contractual and other legal obligations so casually would seriously impair their ability to raise money in the future by entering into gift agreements such as the ones at issue here.

It took quite some time but, with money raised from anonymous donors, Vanderbilt paid $1.2 million to the Daughters of the Confederacy and renamed the building this month in accordance with the Court’s judgment.

Unfortunately, this has not brought this story to a happy conclusion. Vanderbilt has damaged its reputation by revealing its willingness to “casually” disregard donor intent.

I stand firmly with the Appeals Court decision. How I feel, or anyone feels, about the old Confederacy or the word “Confederate” on the building is irrelevant in this case. Instead, there are two powerful governing issues involved here:

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November 11, 2015

Rejecting a $100,000 Gift Helps #Nonprofit Raise MORE Money

The idea of rejecting a major donation usually sends a chill up the spine of nonprofit executives. After all, nonprofit organizations are not in business to return donations. Instead, charities employ hardworking fundraising professionals to bring in contributions. For many nonprofits, donations are the lifeblood of the organization.

However, rejecting a gift can actually help a charity protect its mission. Recently, I reported on two organizations that rejected or returned major gifts:

“When Should You Refuse a Gift?” — tells the story of Lucy the Elephant rejecting a grant offer from People for the Ethical Treatment of Animals

“Update: Spelman College Returns Gift from Bill Cosby” — relates why a major gift from Cosby was returned

Not long ago, the Girl Scouts of Western Washington demonstrated that a nonprofit can protect its mission and raise more money by mindfully rejecting a donation. In the case of the Girl Scouts, the organization rejected a $100,000 gift and raised over $250,000 in the process!

Girl Scouts W WashingtonWhen the Girl Scouts received the $100,000 gift, the staff was understandably thrilled. The money equaled approximately one-third of the organization’s financial assistance program budget for the year. The Girl Scouts offer financial assistance so that any girl can join despite economic obstacles.

Unfortunately, the Girl Scouts quickly learned that the major gift came with a major stipulation: the organization could not use any of the funds to help transgender children.

Megan Ferland, CEO of the Girl Scouts of Western Washington told Seattle Metropolitan magazine:

Girl Scouts is for every girl. And every girl should have the opportunity to be a Girl Scout if she wants to.”

In other words, accepting the donor’s terms for the gift would have violated the organization’s mission. So, the Girl Scouts made the only decision they could; they returned the gift.

Then, the organization tried to turn a lemon into lemonade. The Girls Scouts launched an Indiegogo crowd-funding campaign to try to recoup the funds. In the campaign, the Girl Scouts explained the situation. However, the organization correctly protected the privacy of the donor by not revealing the donor’s name.

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July 29, 2015

Update: Spelman College Returns Gift from Bill Cosby

Seven months ago, I first reported that Spelman College announced the suspension of an endowed professorship in humanities that was funded by Bill and Camille Cosby. At that time, I called on the College to either renegotiate the gift or return it to the Cosby family.

Post No Bills by Jon Mannion via FlickrOn July 26, 2015, the College revealed its decision to terminate The William and Camille Olivia Hanks Cosby Endowed Professorship and to return the donation to the Clara Elizabeth Jackson Carter Foundation, established by Camille Cosby.

Last December, Spelman issued this one-paragraph statement:

December 14, 2014 — The William and Camille Olivia Hanks Cosby Endowed Professorship was established to bring positive attention and accomplished visiting scholars to Spelman College in order to enhance our intellectual, cultural and creative life; however, the current context prevents us from continuing to meet these objectives fully. Consequently, we will suspend the program until such time that the original goals can again be met.”

Amid mounting accusations of sexual assault involving Bill Cosby, the College decided to terminate the endowed professorship. As of this publication date, Cosby has not been charged with any related crime.

As I stated in my December post, nonprofit organizations are ethically required to use a donor’s contribution in the way in which the donor intended. The applicable portions of the Donor Bill of Rights “declares that all donors have these rights”:

IV. To be assured their gifts will be used for the purposes for which they were given….

V. To receive appropriate acknowledgement and recognition….

VI. To be assured that information about their donations is handled with respect and with confidentiality to the extent provided by law.”

The relevant passages from the Association of Fundraising Professionals Code of Ethical Principles state:

14. Members shall take care to ensure that contributions are used in accordance with donors’ intentions….

16. Members shall obtain explicit consent by donors before altering the conditions of financial transactions.”

By returning the gift after deciding not to use it for the intended purpose, the College acted ethically. However, a number of other ethical questions remain unanswered:

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January 2, 2015

Don’t Make New Year Resolutions You Can’t Keep

It happens every year at this time. People make New Year resolutions. Then, a short time later, they break those resolutions.

Breaking New Year resolutions is bad. Doing so can make you feel guilty. It can erode your self-esteem. If you told anyone about your resolutions, your failure to keep them could even be embarrassing.

Here’s a novel idea for 2015: Don’t make New Year resolutions you can’t keep.

Fireworks

Happy New Year from Philadelphia!

Instead of setting overly challenging goals, I encourage you to adopt the three following, easy-to-keep resolutions. While easy to adhere to, the following resolutions are nevertheless meaningful. You’ll notice that my three resolutions include something that will benefit you, something that will benefit others, and something that will benefit your organization:

 

  1. Indulge yourself. Yes, you need to take care of yourself by eating right, exercising, and getting an annual medical physical. However, you also need to let yourself be bad occasionally. You need to take care of your psyche. If that means having a slice of chocolate cake, then go for it! If it means watching old television episodes of Gilligan’s Island, so be it. If it means having your spouse watch the kids so you can enjoy a leisurely bubble bath, make it happen. By being good to yourself, you’ll be better able to be good to other people.

 

  1. Make sure those you love know you love and appreciate them. Don’t assume that those you love know it or know the extent to which you care about them. Tell them. Show them. Don’t just run for the door in the morning to rush off to work; instead, take the time to kiss your spouse good-bye. Don’t just nod when your child comes home with a good test score; instead, take the time to tell him how impressed you are. Make your partner a steaming cup of tea before she asks for it or goes to make it herself. In other words, make the most of the little moments.

 

  1. Grow professionally. One of the hallmarks of being a professional is ongoing education and sharing knowledge. So, commit to attending seminars and conferences. If time or money are obstacles, participate in a webinar; there are some excellent free webinar programs available throughout the year. Or, read a nonprofit management or fundraising book. There are some terrific books at The Nonprofit Bookstore (powered by Amazon) that will inspire and help you achieve greater results. You’ll find Reader Recommended titles, the complete AFP-Wiley Development Series, and other worthwhile items. If you have found a particular book helpful, consider sharing a copy with a friend, colleague, or your favorite charity. By the way, a portion of the sale of books through The Nonprofit Bookstore will be donated to charity.

 

(If there’s a nonprofit management or fundraising book that you read recently that you found particularly helpful, please let me know below so I can include the title in the Readers Recommended section.)

For additional reading, you might also consider looking at some of my posts that you might have missed. Here is a list of my top ten most read posts during the past year:

  1. Can a Nonprofit Return a Donor’s Gift?
  2. Delivering (My Own) Bad News
  3. 5 Things Never to Do in Your Phone Fundraising Calls
  4. One Word is Costing Your Fundraising Effort a Fortune
  5. Special Report: Top 40 Most Effective Fundraising Consultants Identified
  6. How NOT to Run a Capital Campaign
  7. Cheating Death
  8. #GivingTuesday Has NOT Made a “Huge Difference”
  9. 5 Lessons Moses Can Teach Us about Fundraising
  10. 20 Factoids about Planned Giving. Some May Surprise You.

I invite you to read any posts that might interest you by clicking on the title above. If you’ve read them all, thank you for being a committed reader.

I’m honored to know that I have readers from around the world. (I love the Internet!) While I appreciate all of my readers, I thought it would be interesting to look, beyond the United States, to see my top ten countries for readership:

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December 27, 2013

Top Ten Posts of 2013, and Other Reflections

As 2013 draws to a close, I thought it would be interesting to look back briefly before we march into the New Year.

Happy New Year!

Happy New Year!

For starters, let’s look at which of my posts have been the top ten most read in the past year:

1. Can a Nonprofit Return a Donor’s Gift?

2. 6 Ways to Raise More Money without New Donors!

3. 5 Words or Phrases that Can Cause Donors to Cringe

4. 5 Things Never to Do in Your Phone Fundraising Calls

5. 5 Tips for Giving Donors What They Really Want

6. How NOT to Run a Capital Campaign

7. Prospect Research v. Invasion of Privacy

8. 7 Magical Words to Earn Respect, Trust, and Appreciation

9. Do You Make Any of These Mistakes When Speaking with Donors?

10. Do Not Let This Happen to Your Organization

I invite you to read any posts you might have missed by clicking on the title above. If you’ve read them all, thank you for being a committed reader.

I’m honored to know that I have readers from around the world. (I love the Internet!) While I appreciate all of my readers, I thought it would be interesting to look, beyond the United States, to see my top ten countries for readership:

1. Canada

2. United Kingdom

3. Australia

4. India

5. Netherlands

6. Philippines

7. France

8. Germany

9. New Zealand

10. Italy

Overall, Michael Rosen Says…, has seen a 20 percent increase in readership in 2013 compared with 2012. I thank everyone who made that possible by dropping by to read my posts. I especially want to thank those who have subscribed.

When you subscribe for free in the column at the right, you’ll receive email notices of new posts, including “Special Reports” which are not otherwise widely publicized. Beginning in 2014, subscribers will also receive exclusive bonus content and a limited number of subscriber-only special offers directly from me. So, if you’re not already a subscriber, sign-up now.

Just as I value all of my readers, I also greatly appreciate those who take the time to “Like” my posts, share my posts, Tweet my posts, re-blog my posts, and comment on my posts. In particular, I want to recognize the following people who have commented most often in 2013:

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