My response would have been simple....
ORG is open for anyone to register therefore the highest bidder gets it.
Don't get me wrong I am not without feelings but I prefer not to get into a relationship with potential clients because that is when hurt feelings come in. I call them Mr or Mrs and keep everything polite. I also clearly state that I allow more than one bidder on a domain and the bidders will each be asked to make a last bid.
If someone says they need to fund raise I would not delay a current bid unless I thought I had a good chance of getting considerably more. A sale in the hand is better than a promise for a future sale.
I appreciate the good will you showed but I'm not sure I would have been as generous. I mean if I was really that generous then I would sell to all the students that ask me for a good deal