When Is It Okay To Release A Donor?

The balance of maintaining healthy donor relationships while being prepared to make tough decisions when necessary.  This robust conversation sheds light on the delicate balance between donor engagement and organizational integrity. Our cohosts talk about how to create comprehensive gift acceptance policies and to handle donor releases with respect and transparency.

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Cohosts Julia Patrick and Tony Beall jump into a challenging topic: when is it okay to release a donor? Julia begins by recalling the concept of "bless and release," introduced to her by Terry Axelrod, which emphasizes letting go of donors who no longer align with the organization’s goals or values. 

Understanding the Concept of Releasing a Donor 

Tony Beall shares his thoughts on the subject, highlighting the importance of maintaining donor relationships but recognizing when it's necessary to part ways. "I'd like to think of it more as redirecting a donor than releasing a donor," Tony says. He emphasizes the importance of redirecting donors to other organizations where their interests and values might align better. 

Julia and Tony agree that parting ways with a donor should be handled with dignity and respect. Tony stresses, "When we talk about releasing a donor, it's important to do so with the highest level of dignity and respect for the individual." 

Scenarios That Might Lead to Releasing a Donor 

The conversation then shifts to specific scenarios that might necessitate releasing a donor. Tony points out that issues often arise with higher-level donors who may overstep their boundaries. "A high-level donor might want to make decisions around staffing or the direction of a program, which can blur the lines of their contribution," he explains. Julia adds an example from her community, where a major donor’s source of wealth conflicted with the organization’s values, leading to a refusal of a transformative gift. 

Handling Controversial Gifts 

The two touch on how organizations handle controversial gifts. Julia shares a story about a donor whose substantial gift was debated due to the nature of his business. The board ultimately decided against accepting the donation, despite its potential to transform the organization. Tony suggests that having a clear gift acceptance policy can prevent such conflicts. 

Donor Agreements and Ethical Considerations 

Tony and Julia discuss the value of donor agreements, particularly in naming rights and major gifts, to protect both the organization and the donor. Tony highlights, "Whenever I've been involved in naming anything, there has always been a donor agreement with clauses for various scenarios." 

Watch this episode now, before you might have to confront a situation!

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