One should check applicable law before returning a donation, which could vary from jurisdiction to jurisdiction. This article by a CPA suggests that “if a donor asks for a smaller donation back, it’s usually best to return it. Larger donations may be harder to return. In this circumstance, talk to your legal and financial advisors — and possibly your state’s not-for-profit agency.” The rationale isn’t stated, but I suspect the business-judgment rule might apply here. In other words, it may be possible for the charity to decide that furtherance of good donor relations justifies refunds under certain circumstances as a means of achieving the charity’s objectives.
One should check applicable law before returning a donation, which could vary from jurisdiction to jurisdiction. This article by a CPA suggests that “if a donor asks for a smaller donation back, it’s usually best to return it. Larger donations may be harder to return. In this circumstance, talk to your legal and financial advisors — and possibly your state’s not-for-profit agency.” The rationale isn’t stated, but I suspect the business-judgment rule might apply here. In other words, it may be possible for the charity to decide that furtherance of good donor relations justifies refunds under certain circumstances as a means of achieving the charity’s objectives.
Thanks!