Certified Fund Raising Executive (CFRE) Practice Test

What should gift acceptance policies include?

1. The obligation to accept all donations

2. The option to disclose donor identities

3. The right to accept or decline gifts

4. The process for gift evaluation

The correct answer is: The right to accept or decline gifts

Gift acceptance policies are essential for any organization as they set clear guidelines on how to handle donations. Including the right to accept or decline gifts is crucial because it allows the organization to maintain control over the types of gifts it receives, ensuring they align with its mission, values, and operational capabilities. This flexibility is vital for safeguarding the organization from potential issues arising from unwanted or inappropriate donations that could compromise its integrity or lead to future complications. By having the authority to decline certain gifts, an organization can focus on fostering positive relationships with donors while ensuring that any accepted donations will enhance its goals and objectives. This policy also allows for a thoughtful review of gifts that may carry restrictions or obligations that could be detrimental or burdensome to the organization. In contrast, options such as the obligation to accept all donations undermine the organization’s ability to make informed choices. The option to disclose donor identities could raise privacy concerns, and while having a defined process for gift evaluation is important, it does not provide the same level of autonomy and control over accepting or declining gifts that is foundational to a sound gift acceptance policy.