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Can a Nonprofit Return a Donor’s Gift?

Find out if this behavior is legal

Jan. 27, 2012

Two relatively recent news events have raised the issue of nonprofit organizations returning gifts to donors:

  • The mainstream media wanted to know if Penn State University should return donations to donors who ask for a refund or should Penn State stick to its longstanding policy of not returning gifts. Following the Jerry Sandusky child sex-abuse scandal, the University affirmed its no-refund policy in its official talking points.
  • The mainstream media also took notice of a lawsuit filed by country music star Garth Brooks against INTEGRIS Canadian Valley Regional Hospital. Brooks sought the return of a $500,000 contribution. The media wondered if the Hospital should have returned the donation before things ended up in court.

Since much has already been said about whether gifts should be returned upon a request by a donor, I want to focus on whether a nonprofit organization can legally return a donation.

Please select this link to read the complete blog post from Michael Rosen Says.

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