Principles and Practices

for Nonprofit Excellence

Fundraising

Nonprofit organizations provide opportunities for individuals and institutions to voluntarily contribute to causes of their choosing. Nonprofit fundraising should be conducted according to the highest ethical standards with regard to solicitation, acceptance, recording, reporting and use of funds. Nonprofits should adopt clear policies for fundraising activities to ensure responsible use of funds and open, transparent communication with contributors and other constituents.

Accountability to Donors

1) Nonprofits must comply with all federal, state and local laws concerning fundraising practices, including registration and annual reporting with the Office of the Minnesota Attorney General. 

2) Nonprofit organizations are responsible for conducting their fundraising activities in a manner that upholds the public’s trust in stewardship of contributed funds.

3) Fundraising communications should include clear, accurate and honest information about the organization, its activities and the intended use of funds. 

4) Nonprofits must use funds consistent with donor intent and comply with specific conditions placed upon donations. 

5) Nonprofits must send a written acknowledgement to all donors who make a “quid pro quo” donation (that is, a payment made partly as a contribution and partly for goods and/or services) in excess of $75 and should also send a written acknowledgement to all donors who made contributions of $250 or more in cash or property in the previous calendar year. 

6) Nonprofits should strive for a balance between publicly recognizing charitable contributions and maintaining donor confidentiality when requested. Nonprofits must not share, trade or sell contact information for any donor without prior permission from the donor. 

7) Nonprofits should regularly communicate with contributors regarding their activities and should make such information available through public and private media (including Web sites, emails, newsletters, press releases to major and community media outlets, and free or paid advertising).

Policies

8) A nonprofit’s board of directors has overall responsibility for raising sufficient funds to meet budgeted objectives.

9) Nonprofits should adopt clear policies regarding the acceptance of personal gifts from any constituent to staff members, board members, and volunteers.

10) A nonprofit has an obligation to decline funds or in-kind donations that would bring about adverse conditions for the organization or its constituents and gifts given for purposes outside the scope of its mission.

11) Nonprofits should apply a high percentage of each dollar raised to programs and services in accordance with practices of comparable organizations, state statutes and representations made to contributors and the public.

12) Compensation for fundraising personnel and contractors should not be based on a percentage of funds raised or other commission-based formulas.

13) A nonprofit should closely monitor any individual or organization that solicits funds on its behalf to ensure adherence to donor intent as well as accountable fundraising practices.

14) If using contracted or professional fundraisers, nonprofits should ensure such fundraisers are registered with the Office of the Minnesota Attorney General.

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Principles and Practices

Click on the links below to jump to the different sections of The Principles and Practices for Nonprofit Excellence.

• Introduction
• The Principles
• Role in Society

• Governance

• Planning

• Transparency and Accountability

• Fundraising

• Financial Management

• Human Resources

• Civic Engagement and Public Policy

• Strategic Alliances
• Evaluation
• Advice for Users
• The Origins of the Principles and Practices

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Principles and Practices for Nonprofit Excellence