January 2025 – Parks & Recreation - 13

When to Say No to a Donation
The importance of a gift acceptance policy
By Bret Gaither
A
ll organizations need financial support to thrive. For park and
recreation agencies, donations are often needed to help us meet
our goals. Every dollar or item given can make a huge impact,
whether that's feeding hungry kids in an after-school program,
renovating accessible spaces for people of all ages to play or supporting an
annual event. However, not all gifts are created equal, and some can come with
hidden costs, risks or ethical concerns. This is why having a comprehensive
gift acceptance policy is essential for any organization that accepts donations.
A gift acceptance policy is a
standard operating procedure that
defines the types of gifts an organization
will or won't accept and outlines
the criteria by which donations
are evaluated. While it may seem
like such a policy could discourage
potential donors, it serves to protect
the organization and its reputation,
manage resources effectively, and
align donations with its mission.
Managing Risk
One of the most crucial benefits of a
gift acceptance policy is that it helps
manage risks. Some donations, while
generous, may carry liabilities
or
costs that outweigh their value. For
example, a property donation may
seem like a windfall, but it could
come with environmental hazards,
back taxes or expensive upkeep requirements.
Similarly, donations in
the form of stocks, artwork or other
non-cash items may be difficult to sell
or appraise. Without a clear policy in
place, park and recreation agencies
may inadvertently accept gifts that
place a financial strain on their operations
or even harm their public image.
Aligning Values
A gift acceptance policy also ensures
that donations align with the organization's
values. Accepting a gift that
contradicts your goals can create
confusion among community members
and potentially damage your
credibility. For example, a program
focused on environmental conservation
would likely avoid accepting
donations from companies known
for polluting practices. With a gift
acceptance policy in place, agencies
have documented guidelines that allow
them to make tough calls with
consistency and integrity. By providing
staff with a clear roadmap, these
policies help prevent conflicts of interest
and support ethical standards
across the organization.
Maintaining Relations
Furthermore, a well-defined policy
can aid in donor relations by
setting clear expectations. When
donors understand the types of
gifts an organization can or cannot
accept, it reduces potential
misunderstandings
and
disappointment.
A gift acceptance policy
can also include guidance on
donor recognition, allowing agencies
to be transparent about how
they acknowledge different levels
and types of contributions. This
transparency can foster trust and
goodwill between the agency and
its supporters, strengthening longterm
relationships.
Promoting Efficiency
A gift acceptance policy promotes
organizational efficiency. Knowing
what types of gifts to accept, reject
or consider further allows agencies
to avoid prolonged deliberations
on individual contributions. It
streamlines the evaluation process,
ensuring the team can focus more
on mission-driven activities rather
than administrative tasks. In cases
where gifts fall outside standard
parameters, a policy can guide the
appropriate channels for approval
and oversight, adding an extra layer
of accountability.
A gift acceptance policy is much
more than a bureaucratic formality;
it is a strategic tool that helps organizations
navigate the complexities
of charitable giving. By managing
risks, aligning with the mission,
clarifying donor expectations, upholding
ethical standards and promoting
efficiency, a well-crafted
gift acceptance policy can empower
park and recreation agencies to
make the most of their resources
and continue making a positive impact
in their communities.
Bret Gaither is Senior Director of
Development at NRPA (bgaither@nrpa.org).
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January 2025 – Parks & Recreation

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