Managing gifts from high-net-worth donors is not about discouraging generosity, but about stewarding it responsibly.
By Ed Sluga, Co-Founder and President of PGgrowth
High-net-worth donors play a vital role in enabling organizations to advance their missions, scale impact, and pursue ambitious initiatives. Charities take incredible steps to align themselves with these donors—not only to recognize the current gift received, but also to position the donor for future gifts.
We see this on named buildings, display advertising, and event promotion. We lean into these philanthropic leaders because they’re providing the support the institution needs. While it’s best practice to lean in, organizations also need to engage in additional best practices when securing and promoting these types of gifts.
Recently, there have been some worrying examples from the United States (and here in Canada) where the reputations of an organization and staff leadership could be called into question after the emergence of negative information about specific donors. The acceptance and management of gifts from high-profile individuals can introduce distinct reputational, ethical, and governance risks.
Given their visibility in the community and the media scrutiny that often accompanies wealth and influence, organizations must approach these relationships with heightened care and foresight.
The risk
One of the primary risks stems from association. Prominent donors may be linked—fairly or unfairly—to controversial business practices, political positions, or personal conduct that can trigger negative publicity.
When an organization accepts a significant gift without sufficient diligence, it can inadvertently expose itself to reputational harm that undermines public trust, stakeholder confidence, and donor integrity. In some cases, the long-term costs of such damage may far outweigh the financial value of the gift itself.
It is worrying that many organizations under pressure to raise ever-increasing community support take an “ask for forgiveness” approach when securing these gifts.
Best practice
Effective gift management begins with robust due diligence processes. This includes assessing the donor’s:
- Public profile
- Sources of wealth
- Potential conflicts with the organization’s values, mission, or policies.
Clear gift acceptance guidelines help ensure consistency, transparency, and defensibility in decision-making, particularly when difficult judgments must be made under public scrutiny.
Equally important is proactive communications planning. Organizations should be prepared to explain:
- Why a gift was accepted
- How it aligns with the mission
- What safeguards are in place to preserve independence and ethical standards.
Defined naming rights policies, ethical review committees, and leadership oversight further reduce risk by ensuring no single individual bears responsibility for high-stakes decisions.
The charity “super power” is the ability to say no
Gifts to charitable organizations, unlike gifts to donor-advised funds (DAFs) or private foundations, are received by organizations that have both an ethical and moral imperative to conduct themselves to the highest possible standards and to support a very specific charitable mission. Any charity has the incredible power to reject any gift if the person or entity making the gift does not meet these high standards.
Ultimately, managing gifts from high-net-worth donors is not about discouraging generosity, but about stewarding it responsibly. By balancing opportunity with diligence, organizations can preserve their credibility, maintain public confidence, and ensure that philanthropy strengthens—rather than compromises—their mission and reputation. It is one of the unique value propositions of a charity that sets it aside, and above, those “for-profit” options that are not concerned with these important ethical and moral issues
7 considerations around receiving major gifts
1. Risk-based tiering
Adopt a tiered due diligence framework that scales the intensity of review based on the gift size. The larger the gift, the more focus it requires.
2. Reputational screening
Conduct structured reputational due diligence about the donor that might throw up a “red flag.”
3. Source-of-wealth consideration
The same goes for the source of the wealth from which the gift is coming.
4. Clear gift acceptance policies
Maintain written policies that define unacceptable sources and conditions, including multiple layers of oversight.
5. Documentation and decision rationale
Have a well-documented rationale for acceptance of gifts, conditions for those gifts, or refusal of gifts.
6. Communications preparedness
Prepare a brief narrative explaining:
- How the gift advances the mission
- Why it aligns with values and policies
- What safeguards are in place to protect the charity’s independence.
7. Ongoing monitoring
Due diligence isn’t a one-time thing. It’s an ongoing effort for all major gifts.
Periodically reassess your charity’s reputational risks and monitor changes in public profile or circumstances.
Next steps
If you have concerns about a donor at your organization, reach out and ask us about PGcounsel. This is our service where we provide ongoing or one-time external fundraising expertise, just a phone call away.
A version of this article was first published in Hilborn News.