31: Nonprofit Ethics and Gift Policies | Eric Heininger

Nonprofit ethics and gift policies are crucial for protecting trust and building sustainable organizations. In Episode 31, Lindsay speaks with Eric Heininger about developing strong gift acceptance policies, fostering ethics awareness, and preventing harassment. Eric offers practical guidance for nonprofits committed to leading with integrity and creating safe, values-driven workplaces.

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Setting Clear Boundaries and Policies in Fundraising

We are a community for good. If you set boundaries and you act on those, whether it’s a policy for gift acceptance or the relationship with board members and colleagues, it’s pretty straightforward. Share on X

October is Ethics Awareness Month, and we’re spotlighting the importance of ethical practices in nonprofit fundraising.

In this powerful conversation, I’m joined by Eric Heininger, CFRE, founding managing director of EDEN+ in Des Moines, Iowa, and founder of the Des Moines Fundraising Institute.

Today, we cover two essential topics:

Gift acceptance policies
Sexual harassment prevention in fundraising and volunteer management

Eric shares a very personal story that hasn’t been told elsewhere, and I invite you to listen with compassion—these conversations are crucial for building a healthier, more human-centered philanthropic culture.

Why Ethics Matter to Nonprofits

Ethics are fundamental to the existence of nonprofits. Nonprofits thrive on donated funds and serve needs that government and the private sector cannot adequately address.

Without strong ethics:

Giving doesn’t happen.
Fundraising doesn’t happen.
Change and impact don’t happen.

Tax exemption status for nonprofits is based on society’s trust that these organizations act for the greater good. Upholding ethical standards isn’t optional—it’s essential.

Donor Control, Conflict of Interest, and the “Dirty Money” Dilemma

Is money inherently dirty? No. But when wealth exists alongside great poverty, ethical stewardship becomes essential.

Philanthropy and nonprofits help bridge the gap between extraordinary wealth and societal needs. We must invite everyone into the fold—engaging all to lift society up, not just fend for themselves.

Until and unless a nonprofit aligns internally on its ethical boundaries—around staff management, volunteer engagement, and gift acceptance—it should not operate.
That’s a bold statement, but after my discussion with Eric, it feels justified.

Establishing Gift Acceptance Ethics

When creating your gift acceptance policies, consider:

Donor intent
Benefit to the organization
Alignment (or misalignment) with your brand and values
Long-term implications for giving and reputation

First, get clear on your organization’s ethics, beliefs, and boundaries with leadership and the board.
Then, document and publicize them.

Real-world examples could include gifts offered by controversial politicians, activists, or convicted individuals. By having a clear policy, you avoid making emotionally charged, inconsistent judgment calls later on.

How to Navigate Donations Ethically

You control how your organization responds to gifts. Consider:

If a donor’s gift is primarily a PR move, is it still aligned with your mission?
If a donor’s public actions undermine your mission, is it worth accepting their funds?

Some donors seek recognition—and that’s okay! Just be prepared to evaluate how each donation impacts your future fundraising and mission. Having clear, proactive policies is critical.

Harassment Prevention Policies: Protecting Your People

Nonprofits must operate as safe, respectful spaces—for staff, volunteers, beneficiaries, and donors alike.

Harassment is not limited to the corporate world. In the nonprofit sector, community engagement creates even more layers of complexity.

Create, state, and perpetuate harassment prevention policies.
Do not wait. No nonprofit should operate without clear, enforced guidelines that prioritize safety and respect.

Final Thoughts

Ethics are not an afterthought. They are the foundation of a thriving, trusted nonprofit community.

Setting clear boundaries, acting with integrity, and leading with courage ensures that our missions endure—and that we continue to serve the greater good with honor.

Go to the website of the Association for Fundraising Professionals for awesome resources. Click here for the link.