Nonprofit 411: Pledges & Promises: Gift Acceptance Policy Guidelines

May 30, 2025


Read Emily Wagman's Nonprofit 411 article on the Massachusetts Nonprofit Network.

A promise is a promise — but in charitable giving, not all promises are enforceable. Donors may make pledges they later delay or fail to fulfill due to events like economic downturns or dissatisfaction with how funds are used.

To prevent misunderstandings and legal issues, nonprofits should document major gifts with signed agreements and establish clear gift acceptance policies. These practices set expectations, support donor relationships, and provide guidance—especially during economic uncertainty when donors may offer non-cash assets or seek to modify commitments.

Continue reading to learn more about:

  • How to distinguish between a legally binding pledge and a non-binding statement of intent

  • What to include in a comprehensive gift agreement for major gifts

  • Steps to take when a donor requests to modify or cancel a pledge

  • Key components of a strong gift acceptance policy

  • Handling non-cash gifts, including real estate, stocks, or other complex assets

  • Best practices for documenting and managing restricted gifts

  • How economic changes can impact donor commitments — and how to prepare

Emily A. Wagman

Emily Wagman advises nonprofit organizations in a diverse range of legal, tax, governance and compliance matters.