Designated & Restricted Gift Acceptance Policy
The board-adopted policy governing how the church solicits, accepts, tracks, and honors donor-designated and restricted gifts versus general-fund giving.
Draft: pending review
This starter document is signed off by Nonprofit/church counsel + CPA (fund accounting) before it ships. The guardrails below define that review.
What’s inside
- Definitions: unrestricted, temporarily/permanently restricted, and 'preference' vs. binding restriction
- Pre-approved designations list and the process to request a new fund
- Overage/shortfall and 'gift-off' language redirecting surplus or discontinued-project funds
- Gift-refusal and gift-modification procedures for restrictions the church cannot fulfill
Legal & ethical guardrails
The sector-specific compliance points this document must honor.
- Church must honor valid donor restrictions; commingling or repurposing restricted gifts without consent can be misuse
- Solicitation must not promise earmarking to a specific individual in a way that defeats deductibility (impermissible pass-through)
- Include a board variance/redirection clause disclosed to and accepted by the donor at the time of the gift; absent that reserved right, modifying an accepted restriction requires donor consent or the state UPMIFA release / cy-près (deviation) process — a unilateral board clause is not a blanket cure. Retain 'full control and discretion' language and classify per FASB net assets
- Follow ECFA transparency: designated funds used for the represented purpose and reported honestly
Held for professional review.
The native DOCX and full working text ship only after sign-off by Nonprofit/church counsel + CPA (fund accounting) on this exact version. The summary and review requirements remain visible in the meantime.
Not legal advice. Not legal, tax, or accounting advice. The Fundraising Co. provides educational fundraising materials and is not a law firm; nothing here creates an attorney–client relationship or substitutes for advice from professionals licensed in your jurisdiction. Laws and IRS rules vary by state and change over time. Review every document with qualified counsel before use.