Should You Ever Say No to a Donation?
Turning down a large donation from a donor ready to open their checkbook may sound absurd. The mission of your organization depends on generous gifts, so a fundraiser would have to be crazy to say no to a significant donation...right?
The truth is, there are situations in which you may need to do just that. Not all donors are the right fit for your nonprofit. Partnering with the wrong donors can lead to mission creep or spending too much time working on someone else's project.
So, when should you say "no" to a large donation?
1. Before the first meeting with a potential major donor, if they're not a good fit.
When your development staff is searching for new major donors, they should do a thorough job researching each prospect. This way, they can determine if the potential prospect's values align with your nonprofit's mission. You want to invest your time into building long-lasting partnerships with donors who are invested in your nonprofit's mission and who can grow alongside your organization.
You don't have the ability to maintain real relationships with 300 donors, but you can focus on a few dozen. It's critical to choose the top major donors to your organization wisely and intentionally.
Sometimes, a donor referral can seem promising early on. After further research, you might discover the donor isn't a good match for your organization's profile of ideal donors. This can happen for a variety of reasons. Perhaps it's a foundation lead, and you have better success working with entrepreneurs. Maybe the individual currently gives to organizations not aligned with your nonprofit's mission. Sometimes donors are just passionate about something your organization isn't currently working on. Not every prospect will be the perfect partner for your nonprofit—and that's okay.
How to say no: Simply do not pursue the lead any further. Connect them to a nonprofit that is a better fit. Potential donors will respect your honesty and transparency.
2. If a donor is looking more for a vendor than a partner.
Donors often have wise advice that can help you execute your nonprofit's mission in a bigger and better way. However, sometimes, donors are looking for someone to carry out a particular project for them. What they really want is a vendor they can pay to accomplish their vision rather than a nonprofit to partner alongside.
Although tempting, working with "pay-to-play" donors has the potential to derail your mission. These projects can tie up your staff's precious time and resources that should be spent executing your organization's real vision to change the world. Think about the opportunity cost of these types of distractions. You risk your organization's mission becoming overshadowed and derailed by a donor's special interests.
It's also difficult to grow the relationship with these types of major donors because they haven't bought into your organization's overall mission. You risk having a lot of "one-and-done" donors.
Don't risk mission creep or wasting valuable time on projects to please a single donor. If a donor is treating you like a vendor, it's time to part ways.
How to say no: Have a sit-down conversation with the donor. Explain to them that you appreciate all that they have given and enabled with their gift. However, your nonprofit is no longer accepting donations for specific projects so your organization can focus and maximize resources on your main vision. Then restate what that vision is with your killer pitch and invite them to partner with your nonprofit's mission.
Turning down money may seem foolish in the moment, but in the long run, your nonprofit will be better off for it. Saying no to the wrong donations right now frees up staff time to pursue the right donations--donations from donors who are aligned with your values and fully invested in your big vision.
To learn more about finding and cultivating the right kind of donors for your organization, reserve your seat at our next live workshop.