Ever find yourself tangled in the mess of restricted donations and wondering how to keep everything legal and ethical? Well, you're in luck!
In this episode of Charity Therapy, Meghan and I are here to help you navigate the tricky world of restricted funds with a whole lot of laughter and practical advice. We start with some hilarious stories about my duck-raising adventures—yep, lots of duck eggs—before diving into your questions about handling these special donations.
We chat about what restricted gifts really are, using some famous examples like the Red Cross fiasco, and why it's so important to stick to donor wishes to keep trust intact. Meghan and I discuss the tough decisions nonprofits face, like when someone offers a huge donation for something big, like buying a building. Spoiler: It’s not always as awesome as it sounds! We emphasize involving your board and considering all the costs before jumping in. We even suggest alternatives like short-term leases to avoid financial pitfalls.
This episode is packed with useful tips on responsible fundraising, managing restricted funds without losing your sanity, and ensuring you don’t accidentally break any rules. Plus, we answer some great listener questions, giving you real-life scenarios and solutions.
Whether you're new to the nonprofit world or a seasoned pro, this episode has something for everyone. Grab your headphones, get comfy, and let's dive into the fun and fundamentals of restricted funds!
In this episode, you will hear: - Jess shares her duck-raising adventures and the overflow of duck eggs
- The nitty-gritty of restricted donations
- The Red Cross’s mishap as a cautionary tale on why sticking to donor stipulations is a must to avoid legal trouble
- The drama of an executive director wanting to shuffle restricted funds around
- Jess stresses that shuffling restricted funds is a big no-no
- The legal and ethical importance of using donations as intended
- Reallocating funds with donor consent, how to properly document this, and ways to get donor approval without causing chaos
- A nonprofit newbie is offered a huge donation to buy a building but realizes the money won't cover everything
- Jess advises the newbie on thinking it through, considering ongoing costs, and maybe opting for a short-term lease
- A reminder that major decisions like accepting large restricted gifts should involve the board
- Some key takeaways are to respect restrictions, manage funds smartly, and craft fundraising asks carefully to avoid accidental restrictions
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