21 hours ago
- Restricted donations limit how nonprofits can use funds and are often suboptimal because donors may not understand the organization's needs better than the nonprofit itself.
- Restricted donations are either donations to a bad nonprofit or donations for the wrong purposes, unless exceptions apply such as umbrella organizations or domain experts.
- Donors often choose restricted donations due to motives beyond doing good, like personal recognition or policy compliance, and nonprofits rarely discourage this due to power imbalances.
- The recommendation is to donate unrestricted, trusting the nonprofit's expertise to allocate funds where most needed.