Organizational Policies for Fundraising Success – Part 1

There is a whole raft of organizational policies that non-profits should have, but we’re focusing on those that are necessary to running effective fundraising programs. While we’re not attorneys, we do have years of experience helping organizations develop policies that are pivotal to fundraising success.

The need for good policies comes up frequently as a practical matter – a foundation may require specific policies as part of their submission requirements or a donor may ask about a policy as part of their gifting decision-making. Foundations and donors join other observers in gauging how you operate, with policy-guided organizations demonstrating greater clarity, direction and transparency.

Having the right policies in place is fundamental to putting your best foot forward with foundations and individual donors.

Among the most important are:

• Diversity, Equity and Inclusion (DEI) Policy: Because of its central importance to overall organizational development and effectiveness, as well as fundraising, we’ll be devoting the second part of our policy blog to DEI, so stay tuned for part 2.
  

• Fiscal Management Policy: In addition to covering issues like whether budgets are required to be balanced, this policy should include several sub-policies important to fundraising:

  • Investment Policy: Outlines how your organization will invest its funds in a responsible, ethical manner. It guides the board's responsibility to monitor investments and act when it’s necessary to protect organizational financial health.

  • Gift Acceptance Policy: Describes the types of gifts the organization can accept. It prepares the board and staff to respond when donors suggest gifts that the organization is unable to manage or are inconsistent with the organization’s mission and values.

  • Debt and Care of Accounts Policy: Clarifies when the organization can dip into its endowment or reserve fund, how to manage pledges (including reneged pledges), and whether it’s possible to pursue long or short-term financing or program related investments and, if so, under what terms.
    

• Code of Ethics Policy: This policy applies to everyone in the organization: Board, staff, and volunteers. It outlines the expectation that they meet the highest behavioral standards, which accord to the values of the organization, the legal code, and non-profit ethics. These sub-policies are key to conducting your fundraising:

  • Non-Disclosure Agreement (NDA) Policy: States that any information shared is assumed to be confidential unless stated otherwise. In particular, it underlines that all donor information must be held in the strictest confidence.

  • Conflict of Interest: Requires that staff, board and others declare personal or professional conflicts of interest, should they arise, for matters in which they are potentially involved. With respect to fundraising, this applies when a person has a pre-existing relationship with a donor (such as fundraising from the donor for another organization); if a conflict exists, the person with the conflict will not be involved with the donor, nor will they disclose information about the donor.
    

Having the right fundraising-related policies in place will equip your organization to have a clear plan to handle issues as they arise, and ensure that your actions reflect the values and vision of the organization. They assure your donors that you know what you’re doing and that their confidential information will be both respected and protected.

NOTE:  We recommend that you consult with an attorney before finalizing policies to assure that they meet legal requirements and accomplish their purpose.