Our CFO would like to save some time, headache, and paperwork by limiting us from accepting any restricted gifts under $5,000.  Several of us Development Directors have some concerns about that from a relationship perspective.  We have several foundations who give under that amount and we just had an individual give $50 to a restricted cause that we have no fund for.    Do any of you have a gift acceptance restriction similar to this?

I think this is a BAD idea from a donor relations standpoint.  We have funds set up for several dozen departments or programs that our donors like to support.  We accept restricted gifts of any amount to these funds.  At the end of the fiscal year, the funds are released from restriction and used to offset the expenses of the particular department or program.  For us, it's a fairly straightforward process.  We do have instances where we receive restricted donations but have no fund.  In that case, we determine whether or not we can meet the donor's restriction (the money will be used to offset expenses we already incur).  If we can, we use a fund called "Further Restricted" and note the restriction on the reference line, which the accountant sees on the monthly reconciliation report.  If we can't, the gift officer calls the donor to explain the situation and offer alternative funds.  We have never had a donor request that the gift be returned.  Does your CFO have a development background?  And are you willing to risk the good will of your donors?  Best of luck!

Leslie

We have a Funds creation policy where we wouldn't establish a new fund if there isn't a specific amount to establish it and the fund won't be used consistently going forward. Gifts that come in with restrictions that our organization can't honor would legally have to be returned to the donor. If your organization can meet the restriction, I agree that it's a bad PR move to turn gifts away. This would be an example of where the Executive Director or President of the Board/Organization needs to get involved in policy/procedure imo.