When Plans Change: How to Ask a Funder to Reallocate a Donation
Let’s talk about something that doesn’t get enough airtime in the non-profit world:
What happens when you need to ask a funder if you can reallocate their donation?
Maybe your project gets funded by someone else while you're still waiting to hear back.
Maybe your internal priorities shift.
Maybe real life happens—and your original plan doesn’t make sense anymore.
This situation is more common than you’d think. And yet, every time it comes up, someone asks me:
“Do we have to send the money back?”
And my answer, in almost every case?
No.
(As long as you handle it properly.)
What to Do When You Need to Reallocate
If the original purpose for the funding is no longer needed, don’t panic—and definitely don’t stay silent.
Here’s the fix:
Tell the funder what changed
Be specific about where you now need support
Explain how this still aligns with your mission and why it matters
The only way to damage the relationship is to:
Avoid the conversation
Spend the funds quietly on something else
Assume the funder “won’t care”
Or delay so long that it turns awkward
Funders want honesty. They’re not expecting you to be perfect—they’re expecting you to keep them informed.
A Real-Life Example
Just this month, one of my clients received a $5,000 cheque in the mail for a small capital project we had casually mentioned over two months prior.
To clarify:
This wasn’t a formal application.
It wasn’t even a letter of intent.
It was a simple outreach email. I reached out to the funder and said something like:
“We’ve got a small capital project we need to move on quickly. Would this be something your foundation might support? If so, I’d be happy to put together a proposal.”
And then… nothing.
No reply. No follow-up. No expression of interest or decline.
So, we carried on. We sought support elsewhere, submitted applications, and got the project fully funded through other sources. We assumed their silence meant they weren’t in a position to fund at this time—or were dealing with internal changes. Either way, we didn’t hold it against them. These things happen.
Then, out of the blue—two months later—a cheque arrived.
And it came with a note: the donation was specifically intended for that capital project.
That changed things. It was clear the intention was generous—but also clearly designated. Which meant we had a responsibility to respond transparently and quickly.
So within an hour, I emailed the funder.
We thanked them sincerely, explained that the project had since been funded, and asked whether the funds could be reallocated to a different, higher-priority area within the organization.
This wasn’t a problem. It was an opportunity.
A chance to build trust, show integrity, and deepen the relationship.
And it only took one email.
Because again—if the roles were reversed, what would you want?
Would you want someone to quietly redirect your donation without asking?
Would you want them to delay the conversation or pretend nothing changed?
Of course not.
So don’t do that to people.
Fundraising rooted in ethics and advocacy means doing what’s right—even when it’s inconvenient, especially when it’s not required.
The Rare Exception
Now—let’s be real. There are situations where money does have to be sent back. I’ve seen it.
But it’s not about pivoting.
It’s about poor decisions and ignoring expectations.
Case in point:
I helped an organization secure $100,000 in funding to support the hiring of six new staff. The funder had very clear eligibility criteria tied to this funding—including a higher allocation for hiring individuals with disabilities, newcomers, or other equity-deserving groups.
That was all outlined up front.
And as the fundraiser, I did my part. I liaised with the funder, wrote the application, and continuously reminded the organization of the hiring criteria they needed to meet.
But ultimately, hiring decisions were 100% in their hands.
And they chose to hire outside of the funder’s eligibility guidelines.
I don’t know what story they were telling themselves—whether they thought they could explain it away, whether they assumed the funder wouldn’t notice, or whether they just didn’t take it seriously.
But in the end?
They had to send a portion of the money back.
They had no alternative plan.
No secondary proposal to present.
And no excuse that held water.
Let’s be clear: I take zero accountability for that outcome.
Because as a fundraiser, I can guide—but I can’t override.
Reallocation ≠ Failure
There’s this idea that if you ask to reallocate funds, the funder will think less of you.
That they’ll see your organization as messy, disorganized, or unreliable.
But that’s just not how it works.
Funders are human.
They understand that timelines shift, needs evolve, and real life doesn't always go according to plan. If anything, what they want most is to know that you’ll be upfront with them when things do change.
Final Word
So, if something shifts after funding is received:
Don’t avoid it
Don’t assume you’ve ruined the relationship
Don’t wait for it to get awkward
Send the email. Make the call.
Reallocation isn’t about failure—it’s about responsibility, transparency, and trust.
Because the truth is, a well-handled reallocation conversation often strengthens your relationship with a funder.
And that’s what fundraising is really about:
Not just getting support, but keeping it.
#AdvocateFundraising
