from The Nonprofit Quarterly:

When a Donor Becomes Tainted

“How should a nonprofit react when a benefactor becomes embroiled in scandal?”

What would and should prompt a nonprofit to return a donation that has been accepted in good faith? This article considers the forces that prompt nonprofits to keep, reject, or compromise on a gift. It walks your organization through ways to sort through the “taintedness” of a donor and the potential forces that influence the decision to (1) keep a donor’s money and name on a building;? (2) return the donation and remove the name;? or (3) adopt a compromise position.

Ultimately, the article helps your organization weigh the factors and determine the most appropriate outcome for the “tainted donor” scenario you face.