155: Baby Don't Hurt Me | What To Do When a Donor Gift Harms More Than Helps

You're getting donations for a nonprofit – and that's great! But sometimes generosity comes with strings you never expected.

In this episode, Meghan and I dig into the wild world of donor gifts and why nonprofits need clear guardrails to protect themselves from gifts that actually hurt the nonprofit.

Real Listener Question: "We have a donation button on our website where people can give online and set up recurring donations for monthly contributions. A few weeks ago, someone set up a daily 50 cent donation. Our accountant looked into it and is saying that it's not fraud or anything like that, but it just seems really silly. Our payment processor takes $0.30 out per transaction plus a merchant fee, so we're getting next to nothing on these donations. What do I do?"

This tiny daily gift opens the door to a much bigger conversation about gift acceptance policies and the hidden costs of donations. Meghan and I talk through the drawbacks, the admin time, the donor relationship dynamics, and the surprising ways well-intentioned gifts can actually drain your resources. We also break down how to set minimums, how to talk to donors with compassion, and how to avoid getting stuck with gifts that cost more than they give back.

What You'll Learn:

• Why every nonprofit needs a gift acceptance policy
• How to know when a gift creates more harm than helps
• The hidden administrative costs behind every single donation
• Ways to set smart donation minimums
• How to redirect donors without damaging the relationship
• Why saying no is actually part of stewardship
• How to prepare for unusual gifts before they show up

Bottom line: Not every gift is a positive thing for a nonprofit. Sometimes you need to say no and guiding donors toward giving that truly supports your mission.

Resources from this Episode

• Generate a Gift Acceptance Policy here: https://birkenlaw.com/mg-document-app/gift-acceptance-policy/
• For the others who aren't Gen-Xers, Night at the Roxbury: https://youtu.be/HwVh8pmOot4?si=2v3D5MAKXDFGteT_
• Previous Episode: What is a Nonprofit Audit with Hannah Hugen: https://birkenlaw.com/charity-therapy-podcast/ct154-nonprofit-audit-hannah-hugen/
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2025/12/CT155_Transcript.pdf

Connect with Us

• Jess Birken: https://www.linkedin.com/in/jessbirken/
• Meghan Heitkamp: https://www.linkedin.com/in/meghan-heitkamp-829254115/

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