Charitable organizations need to raise a specific amount of funds for a certain cause. That is why they hold different fundraising and charity events throughout the year. Large organizations that have made a name in the industry have regular or repeat sponsors who often manage the fundraising event. Aside from individuals, charity sponsors or donors can be a group of people, an organization, or a business. Most businesses give generous donations to charity, provided that it is according to their charity donation policy.
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What Is a Charity Donation Policy?
A charity donation policy is a set of guidelines that a business must follow when donating to charity. Every company or business has specific guidelines to follow before accepting a charity request letter or donation request from any charitable organization. In a charity donation policy, companies provide specific instructions on how an organization can request donations of any form (cash, goods, and services). Some companies require charitable organizations to complete a donation form acquired from their office, while other companies prefer a face-to-face interview with the organization’s representative. There are also instances when a company may require a request for proposal for charity donations.
Aside from specific instructions, charity donation policies also include qualifications. Not all organizations requesting donations or sponsorship are qualified. Some companies only allow nonprofit organizations, while other companies allow both. It is important for any charitable organization to take note of the donation policy of the company they are seeking help to ensure a successful negotiation.
How to Write a Charity Donation Policy
If your company is thinking of donating for charity and wants to have it regulated, then you’ll need to write up your very own charity donation policy. The policy will help establish uniformity in the requests or proposals submitted, making it easy for your company to evaluate the request for a donation.
1. Create an Outline
Preparing an outline will help you determine what things to include in your charity donation policy. While at it, review your company’s position or stand when it comes to donating to charity. Also, write a description of why you are doing charity work and how they help your community.
2. Provide Specific Instructions
Write the instructions like you would in a request for a proposal. It is important that instructions are specific and clearly stated. It should not confuse your readers, which may cause their proposals to be denied. You can write instructions in bullet format or by category.
3. Include Qualifications
If you want to donate only to charitable and nonprofit organizations, include a specific set of qualifications so that only those who are qualified will submit a proposal. This way, you can only dedicate your time to qualified organizations.
4. Define Limitations or Prohibitions
Write the things that your company does not allow with regard to giving donations. It is important that the other party knows and understands this so that there won’t be any issues with the request or the donations.
What should I include in a charity donation policy?
The elements that you should include in a charity donation policy are an overview of your company, oversight responsibility, qualifications or criteria for eligibility, prohibitions or limitations, grant programs, areas of focus, the procedure for requesting, and a matching policy. Some companies may add more elements according to their preferences.
Can I ask for a charity donation back?
The answer is no. Once a donation is made by an individual or another organization, the donor has no legal rights to get back what the already donated. The only time that you should return a donation is when it is not intended for your organization. An example is when a donor says that they made a mistake when selecting the organization to donate online.
Can a charity refuse donations?
Yes, a charity can refuse a donation, especially if it is not according to their charity donation policy. Of course, this is done by weighing the benefits and risks. A charity can also refuse donations coming from companies who are the cause of harm or suffering of the cause your organization is fighting for. For example, your organization is for forest and wildlife protection ad your donor is a company known to be illegally logging in your area. You need to think clearly how accepting or refusing the donations will impact your organization.
Clearly communicate the details of a charity donation policy to interested charity or nonprofit organizations who wish to request specific donations to your firm. Even with a well-written charity donation policy, you still need to explain how the policy works in a way that different organizations will understand. To help you come up with a notable charity donation policy, here are samples and templates that you can use and download for free!
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