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Commentary on ECFA Standard 7.11
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Fundraising -- Acting in the Interest of the Donor

"A member must make every effort to avoid accepting a gift from or entering into a contract with a prospective donor which would knowingly place a hardship on the donor, or place the donor's future well-being in jeopardy."

The Apostle Paul captures the essence of this Standard in Philippians 4:17: “Not that I am looking for a gift, but I am looking for what may be credited to your account.”  Both Christian individuals and organizations should look not only to their own interests, but to the interests of others.

Providing money for evangelical ministries is God’s work. Those who seek funds and those who give are both God’s servants. Those seeking funds for the work of God’s Kingdom should see the donors as participants and individuals, not as checkbooks. The person giving is more important than the gift. Generosity motivated by the example of Jesus Christ and by God’s grace will result in spiritual blessing, joy, and thankfulness.

An organization that aligns its fundraising activities to these Biblical principles will act in the interest of its donors. This does not require an organization to scrutinize every contribution it receives to ascertain whether the donor is financially able to give without incurring present or future hardship. It does mean that in all of its solicitation activities, the organization will act with integrity and honesty, and will avoid manipulating potential donors by false or misleading statements.

The level of responsibility rises in proportion to the level of personal contact with a donor and the size or complexity of gift. Representatives who have knowledge of a potential donor’s specific circumstances will consider these needs in any direct solicitation. Factors to be considered include legal capacity, age, needs of dependents, health or potential health risks, income level, and available assets.

Such an evaluation is essential when an organization seeks major gifts or irrevocable deferred (contractual) gifts. In seeking contractual gifts, the organization may assist the potential donor in evaluating short-term and long-range needs and interests, and then recommend alternatives to achieve the objectives. The representative should also advise a potential donor to consult with his or her own attorney (someone who is independent of and not retained by the charity on any other matter) before a gift is made. The organization may freely enter into contractual agreements if the donor understands both the benefits and consequences of the proposed plan.
 
 


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