Restricted Donations Policy

Guidelines for accepting, managing, and stewarding restricted gifts

Effective Date: 12/15/2025 | Version: 1.0

Purpose

This Restricted Donations Policy establishes standards for the acceptance, documentation, management, and stewardship of restricted gifts made to The Art of Drinking Water Foundation (“the Foundation”). The policy ensures that donor intent is honored while protecting the Foundation’s mission, governance authority, and long-term sustainability.

Definition of Restricted Donations

A restricted donation is a contribution designated by the donor for a specific purpose, program, activity, or time period. Restrictions may be temporary or permanent and must be documented in writing.

Guiding Principles

Restricted gifts must align with the Foundation’s mission and values
The Foundation retains governance authority over all programs and activities
Restrictions support the work but do not direct or control it
Donor intent is honored with care, transparency, and accountability

Statement of Stewardship: The Foundation practices philanthropy through voice and presence. Restricted gifts are accepted only when they preserve dignity, agency, and the ethical use of stories, programs, and community trust.

Acceptance of Restricted Gifts

Restricted donations may be accepted only when:

The restriction is consistent with existing or planned programs
The restriction is clearly defined and documented in writing
The Foundation has the capacity to administer and track the restriction
The restriction does not create undue administrative or ethical burden

Review & Approval

The President and Treasurer may approve routine restricted gifts that align with approved programs. Restricted gifts that are unusual, complex, or significant in size shall be reviewed by the Board of Directors.

Use of Restricted Funds

Restricted funds shall be used solely for the purpose specified by the donor. The Foundation will maintain appropriate financial records to track restricted funds separately from unrestricted funds.

Modification or Release of Restrictions

If a restricted purpose becomes impractical, impossible, or inconsistent with the Foundation’s mission, the Foundation will:

Seek written consent from the donor to modify the restriction, when feasible
Apply funds in a manner as close as possible to the original intent, consistent with law
Follow applicable legal or court processes if donor consent is unavailable

Declining Restricted Gifts

The Foundation reserves the right to decline restricted donations that:

Conflict with the Foundation’s mission or values
Limit independence, governance, or ethical practice
Require endorsement, influence, or preferential treatment
Pose reputational, legal, or operational risk

Donor Communication & Acknowledgement

All restricted gifts will be acknowledged in writing, including a description of the restriction. Donors will be stewarded with transparency and respect, consistent with the Foundation’s Donor Stewardship and Privacy Policies.

Policy Oversight

This policy shall be reviewed periodically by the Board of Directors and updated as needed to reflect legal requirements and best practices.