Lesson 03: Managing Restricted Gifts vs. Unrestricted Gifts¶

Lesson overview¶

Every gift must have a source, purpose, approval path, and documentation. This lesson helps learners manage restricted and unrestricted donations ethically.

Key idea¶

Money is only ethical when the giver’s intent is clear and the organization’s response is documented.

Why this matters¶

Unclear gift handling damages trust, harms donors, and makes the ministry vulnerable to misuse.

Field context¶

This applies to cash gifts, large unmarked donations, project-specific support, and in-kind contributions.

Learner role¶

The learner should ask clarifying questions, record donor intent, and follow the organization’s gift acceptance policy.

Team role¶

Teams should protect restricted gifts from being used for unintended purposes and track each gift’s approval path.

Preparation¶

Review existing gift handling practices.
Identify who approves restricted gifts.
Draft clear documentation steps.

Step 1: Classify gifts¶

Determine whether each gift is unrestricted, project-restricted, time-restricted, or conditional.

Step 2: Clarify donor intent¶

Ask donors to state their purpose in writing and confirm any ambiguities before accepting large or unusual gifts.

Step 3: Document approvals¶

Record the approval process so restricted gifts are only used as intended.

Common challenges¶

Large unmarked gifts can create pressure to spend quickly. The right response is to pause, clarify, and document.

Practical example¶

A donor offers a large gift without specifying a project. The team asks for written direction, records the gift, and only releases funds after approval.

Reflection questions¶

What questions will you ask when a donor gives a restricted gift?
How will you document donor intent?
Who should approve the release of restricted funds?

Summary¶

Managing restricted and unrestricted gifts is foundational for ethical fundraising.

Next step¶

Use the gift acceptance policy template to define your approval and documentation process.