Opinion: Offer ‘Money-Back Guarantees’

Charities can give major donors more confidence that their gifts will be spent wisely if they offer “money-back guarantees,” says Arthur C. Brooks, a professor at Syracuse University’s Maxwell School for Public Affairs, in an opinion article in The Wall Street Journal.

“For donations that are spent outright by nonprofits, these guarantees should hold for a reasonable but limited time; for gifts that go towards endowments, there should be periodic donor review and an option to redirect the money toward other causes,” Mr. Brooks says. (A paid subscription is required to view this article.)