Giving Compass' Take:

• In this blog post from Independent Sector, author Debra Rainey recommends that nonprofit organizations communicate carefully with donors about how their contributions will be used.

• If you are in a leadership position of a nonprofit organization, how can you improve transparency when collecting and using donors' money? If you are a donor, how can you better ensure that your contributions are being used according to your intentions?

• Focused mission statements can help donors make informed decisions about where to give their money, increasing the likelihood they will be satisfied with how their contributions are spent. To learn more about the importance of mission statements for nonprofit organizations, click here.

Contributions must be used for purposes consistent with the donor’s intent, whether as described in the relevant solicitation materials or as specifically directed by the donor. If a donor wants their contribution used a specific way – do what the donor expects.

Basically, donors have the right to expect that their funds will be used as promised. So solicitations by your organization for funding should clearly state how the funds will be used — whether to further general programs and operations, or to support specific programs initiatives.

And sometimes, you don’t tell them, donors tell you — in writing, or through personal conversations, how they expect their funds to be used.

So before your organization accepts a gift, make sure it’s in accordance with your nonprofit’s gift acceptance policy ... and that you’re clear about any stipulations a donor has placed on their gift. If there’s a discrepancy about that between the organization and donor, don’t conclude the transaction until necessary changes are made and agreed upon by both sides.

Read the full article about using donors' money by Debra Rainey at Independent Sector.