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4 highlights

  • If restricted donations do less good than unrestricted ones, why do donors so often make them? Partly because doing good isn’t donors’ only motive. They often have other motives as well — to make a mark, or to generate good publicity [], or to comply with regulations or corporate policies.

  • Restricted donations mean donations where the donor limits what can be done with the money.

  • Usually the way the donor wants the money spent is not the way the nonprofit would have chosen. Otherwise there would have been no need to restrict the donation.

  • You can’t expect candor in a relationship so asymmetric.