3 ms·
A donor can impose conditions on how a 501(c)(3) charity may spend a particular donation. However, those conditions may not supersede the 501(c)(3)'s duty to a
by rectang 8y ago
A donor can impose conditions on how a 501(c)(3) charity may spend a particular donation. However, those conditions may not supersede the 501(c)(3)'s duty to avoid using tax-deductible donations to unduly benefit a commercial actor.
Because dealing with such conditions is a pain, 501(c)(3) charities prefer to receive undirected funds.
- _delirium 8y agoCharities prefer undirected funds, but most will accept restricted funds if the funds are big enough. They often have whole negotiation & legal teams devoted to working with donors to figure out a set of restrictions that's mutually agreeable (i.e. reflects the donor's wishes while minimizing how much of a pain it is to the charity to deal with). Two common examples are donations to museums that are restricted to development of a certain collection or type of work, and donations to universities restricted to funding a specific field of research.