Beyond the Binary: Fundraising isn't just "good vs bad money"

Fundraising is often framed as a moral battleground: the righteous not-for-profit defending its mission against the temptation of “bad money.” It’s a compelling narrative but an overly simplistic one. In reality, not-for-profit leaders face complex, high-stakes decisions about funding sources every day – decisions that rarely fit neatly into “good” or “bad” categories.

As someone who has spent years navigating the intersections of funding, ethics, and impact, I’ve come to see myself as a Radical Moderate in this space. Not because I lack conviction, but because I believe the redistribution of wealth is a necessary and urgent priority – one that requires pragmatism as much as principle.

My ultimate goal is to strengthen the community sector, shift more money into its hands, and ensure that those with power and privilege give back in ways that truly make a difference.

In an era where extreme positions dominate discourse, the Radical Moderate does not sit on the fence. We build the bridges that keep democracy strong – bridges between philanthropy and not-for-profits, between social justice and financial sustainability, between ethical rigor and the practical realities our not-for-profit leaders face when running mission-driven organisations.

This means navigating the grey areas of fundraising with both courage and conviction, but in a thoughtful way.

One of the uncomfortable realities of Australian philanthropy is that a significant portion of the wealth being distributed today has its roots in colonisation, land dispossession, and the exploitation of natural and human resources over the past couple of hundred years. Many of the families and corporations now engaged in philanthropy are, in some ways, trying to "make good" with their wealth. And I love working with them as they do this work.

However, this can sometimes raise the question for fundraisers and not-for-profit leaders: Do we reject this money because of its origins, or do we accept it and use it to drive meaningful change?

While I deeply acknowledge the structural inequities that led to wealth accumulation, I also believe that philanthropy and fundraising are fundamentally about redistribution. The more money that can flow into grassroots organisations, community services, and systemic change efforts, the better.

Rather than taking an absolutist stance, I advocate for a nuanced, transparent, and values-driven approach – one where not-for-profits have the tools to assess and negotiate funding decisions in a way that aligns with their mission.

Radical Moderates understand that fundraising decisions exist in shades of grey, not black and white. Rejecting all funding that comes with ethical complexities may lead to financial instability, while indiscriminately accepting funds can erode trust and credibility.

Instead of asking, "Is this money good or bad?" we should be asking:

• Does accepting this money advance or undermine our mission?
• Can we mitigate potential reputational risks?
• Are we compromising our core values, or are we making a strategic decision in service of our larger goals?

By focusing on these questions rather than moral absolutes, not-for-profits can make informed, values-driven choices that balance financial sustainability with mission integrity.

One of my clients faced a decision that exemplifies the complexities of ethical fundraising. A major gambling company offered a substantial grant to support their programs for vulnerable communities. On the surface, this funding could be seen as problematic – gambling addiction disproportionately affects disadvantaged populations, and some stakeholders viewed the money as tainted.

However, after careful evaluation, the not-for-profit determined that the grant would enable them to expand critical services that directly supported the very people most affected by gambling-related harm. They accepted the funds but did so with strict guidelines:

• The funding would be transparently disclosed to stakeholders.
• It would be used exclusively for harm reduction and support services.
• The organisation would retain its ability to advocate for responsible gambling policies without restriction.

This decision wasn’t about absolving the gambling industry of responsibility, nor was it about rejecting much-needed funding. It was about strategic compromise – using available resources to maximise positive impact while maintaining organisational integrity. Further, the Board made a considered and informed decision that it felt was right for the organisation.

Conversely, another client made the decision to reject a lucrative sponsorship from a major soft drink company. Their organisation was dedicated to improving health outcomes for disadvantaged children, many of whom were at higher risk of obesity and diet-related diseases.

Even though the sponsorship would have provided valuable funding, the leadership team determined that accepting money from a company whose products contributed to the very issues they were working to address would undermine their credibility. Stakeholders, including public health experts and community members, expected the nonprofit to be consistent in its mission and values.

By refusing the funds, they reaffirmed their commitment to health advocacy and strengthened trust with their community. While this decision meant turning away much-needed resources, it also ensured that their message and integrity remained uncompromised.

These case studies illustrate why fundraising isn’t black and white. Every not-for-profit must define its own boundaries when it comes to ethical fundraising, and one way to do this is by having a clear, transparent ethical gift acceptance policy.

At Left Write Hook, we developed an ethical gift acceptance policy to guide our decision-making process, ensuring that funding aligns with its mission, values, and stakeholder expectations. Our policy includes:

• A decision-making framework that assesses reputational risks, alignment with mission, and resource implications.
• A transparent review process that ensures major gifts undergo appropriate evaluation before acceptance.
• A clear stance on rejecting gifts that pose ethical conflicts or operational burdens.

By implementing a structured approach, not-for-profits can move beyond knee-jerk reactions and make well-informed, values-driven decisions about funding sources. It’s more about asking the right questions than having black and white rules.

As a Radical Moderate, I believe fundraisers and not-for-profit leaders should generally be more open-minded about accepting money than rejecting it outright. However, this doesn’t mean abandoning ethical considerations – it means applying a rigorous decision-making process that allows nonprofits to:

1. Assess funding opportunities with nuance rather than defaulting to "yes" or "no" reactions
2. Engage donors in conversations about their philanthropic intentions – ensuring that giving is done with accountability, not just as reputation management.
3. Use ethical policies as a guide, not a weapon – allowing for mission-aligned, pragmatic decisions without unnecessary moral rigidity.

The work of not-for-profit leaders is rarely easy, and fundraising decisions are among the most challenging. However, the goal is not to seek moral perfection – it is to make thoughtful, informed, and mission-aligned choices.

Radical Moderates in the not-for-profit sector do not avoid tough conversations; they lean into them. They acknowledge complexity, navigate ethical dilemmas with care, and ultimately make decisions that maximise impact while upholding integrity.

In an increasingly polarised world, this kind of leadership is more necessary than ever, and I stand with you, not-for-profit leader, as a Radical Moderate committed to building the bridges between social justice and financial sustainability for the sector.

Catherine Brooks is the CEO of Equitable Philanthropy, where she acts as a strategic bridge between charities and philanthropists. Through her work in strategic fundraising, governance planning, and philanthropic advisory, Catherine supports both funders and not-for-profit organisations to increase their impact and build meaningful, long-term relationships.