Charities with strong, current policies are fortunate. The moment that something unusual, tricky or controversial raises its head, both staff and board can reference their policy cannon. In a well-governed charity, there will be a policy that offers guidance and direction on the issue at hand—staff and board find themselves with a starting point.

In the absence of strong, current policies, staff and board enter a conversation from a place of urgency, usually moving quickly, sometimes without consensus and often without making time to research, explore options and give careful consideration to the matter. Hasty and sometimes regrettable decisions are made.

Having a good, current policy puts staff and board in a proactive, unified position. The absence of policy puts them into a tailspin.

Thoughtful policy can help you to engage in conversation about possibilities before they arise. And, as board membership changes regularly, it offers cohesion. Current board members place their trust in decisions made by previous boards.

In development work, Gift Acceptance Policies (GAP) can open untold doors to donor possibilities and place fundraising staff in a state of readiness for donor generosity. Your GAP can reference gifts of property (e.g. real estate and art work) together with gift planning vehicles (wills, insurance, and stock transfer). It can also identify gifts that you will not accept, for example cryptocurrency or gifts of international real estate.

Perhaps you have a Gift Acceptance Policy, but it’s been three years since it's been reviewed. Or, perhaps you don’t have one at all and this is your reminder to make it a priority!

A robust Gift Acceptance Policy:

• States the organizational relationship with donors, and its ethical stance on philanthropy
• Defines what is meant by a gift, what forms these gifts may take, and what limitations may be placed on them—it may also note gifts that are not accepted
• Ties development work to the law and professional standards of practice
• Highlights prudent management of transformational gifts, especially those that are paid in multi-year installments
• Outlines standards for donor recognition, and named spaces
• Sets out how undesignated bequests are used
• Leaves space for unforeseen circumstances

Getting started on (or re-working) your Gift Acceptance Policy

1. Gather GAPs from a couple of other Canadian charities and compare best practices.
2. Ask how a GAP has helped other development teams, and where it has been deficient. If you are revising your policy, apply the same scrutiny.
3. Consider your state of readiness for unexpected gifts. Are you prepared for the donor with a gift of original artwork, a cottage, life insurance policy, or a million dollar donation?
4. Meet with your finance team to gather their insights and discuss the policy framework and why it's needed. Be prepared to bring information forward on how other charities manage less-common gifts. Encourage a philanthropic mindset.
5. Draft your policy, working carefully on the details and word choice. Keep an eye on the difference between policy and procedure. Try to poke holes in what you’ve written, by thinking about the “what if” scenarios.
6. Find a board member champion to shepherd your policy through the relevant committee and board approvals, and if possible, attend the board meeting when the policy is being discussed. Your presentation on the value of the GAP, and the thinking behind it, will elevate philanthropy among your board members.
7. Schedule a policy review in three years.
8. Use your policy! It should be your first port of call when you have any questions about the ways donors wish to provide their philanthropic support.

A Gift Acceptance Policy places you in a state of readiness for donor generosity, and documents the agreement between board and staff on how philanthropy unfolds at your charity.

Sandra Baker, CFRE, works in both advancement and admissions at Hamilton District Christian High. Sandra also has a philanthropic consultancy and coaching practice. Reach out for a chat, or for a sample GAP.