Should I Earmark My Charitable Gifts or Leave Them Unrestricted?

Community Foundation Corner

Quad Cities Community Foundation

By Anne Calder, Vice President of Development

Quad Cities Community Foundation Logo

When making a charitable gift, donors often face a choice: designate the gift for a nonprofit’s overall mission or give to a specific program or project. What’s the difference between the two?

 
Nonprofits are businesses, and the cost of doing business falls into two categories. Operating expenses include the costs of management, staffing, equipment, facilities, and general expenses, while program costs are associated with specific programs, projects, or activities. For nonprofits to achieve their missions, both buckets need to be kept full.
For donors, it can be personally meaningful to support a specific program that is especially meaningful for you or a loved one. Maybe you benefited from it yourself, and you’re looking for a way to give back; maybe you’d like to support a program you’ve helped as a volunteer.

 
When donors support a nonprofit by giving unrestricted gifts to support the operation of the whole organization, they are putting their trust in the organization and leadership. Operations will always need to be funded well so that nonprofits can do their best work. When you know a nonprofit’s work, believe in their ability to carry it out, and want to support them in any way they need, an unrestricted gift will be particularly meaningful.

 
Before I make a gift, I focus on learning about a nonprofit’s mission and the impact they are making. How are they taking on the causes I care about? Are their staff and volunteers well supported in their work? Do their leaders have a vision for the future? Most importantly, do I trust the nonprofit to best use my gift to accomplish its mission?

 
When I can say yes—especially to that last question—I know the organization is a fit and a place where my generosity can make a real impact.