ENSURE THAT ALL FUNDRAISING ACTIVITIES AND POLICIES COMPLY WITH ETHICAL PRINCIPLES AND LEGAL STANDARDS AND REFLECT THE VALUES OF THE ORGANIZATION AND THE COMMUNITY.

[Key Knowledge Area] Laws and regulations affecting not-for-profit organizations, including interactions with stakeholders such as donors, staff, and volunteers

Independent Sector - Principles for Good Governance and Ethical Practice:
The Principles for Good Governance and Ethical Practice outlines 33 principles divided into 4 sections

Legal Compliance and Public Disclosure
Effective Governance
Strong Financial Oversight
Responsible Fundraising

Legal Compliance and Public Disclosure

Laws and Regulations

A charitable organization must comply with all applicable federal laws and regulations in which it is formed or operates.
Charitable organizations must apply for recognition as tax-exempt organizations under section 501(c)(3) of the federal tax code.
They must then file annual information returns and abide by the rules and reporting requirements set for such organizations by the federal government and must also abide by state and local laws.
An organization’s governing board is ultimately responsible for overseeing and ensuring that the organization complies with all its legal obligations and for detecting and remedying wrongdoing by management.

Code of Ethics

A charitable organization should formally adopt a written code of ethics with which all of its directors or trustees, staff, and volunteers are familiar and to which they adhere.
Each organization should adopt a written code of ethics that outlines the values that the organization embraces, and the practices and behaviors its staff, board, and volunteers are expected to follow, it should be accompanied by specific policies and procedures that describe how it will be put into practice and how violations will be addressed.
Both the board and the staff should be engaged in developing and implementing a code of ethics.

Conflicts of Interest

Organizations should adopt and implement policies and procedures to ensure that all conflicts of interest (real and potential), or the appearance thereof are appropriately managed through disclosure, recusal, or other means.
Conflict-of-interest policies should address the disclosure and management of situations that give the appearance of a conflict as well as those that involve an actual conflict.
Once a conflict of interest policy is developed, all board and senior staff members should be required to sign it and to disclose any material conflicts of interest.
Organizations should also be mindful of potential conflicts that can accompany a contribution or a request from a significant contributor, which are often addressed through a gift acceptance policy.

“Whistleblower” Policy

A charitable organization should establish and implement policies and procedures that enable individuals to come forward with information on illegal practices or violations of organizational policies.
They should specify that the organization will not retaliate against and will seek to protect the confidentiality of individuals who make good-faith reports.
The organization should have clear procedures to investigate all reports and take appropriate action.

Document and Data Retention and Destruction

A charitable organization should establish and implement policies and procedures to protect and preserve the organization’s important data, documents, and business records.
They should have a written data and document-retention policy that is consistently monitored over time and should address the length of time specific types of documents and data must be retained.

Protection of Assets

A charitable organization’s board should ensure that the organization has adequate plans to protect its assets against damage or loss.

Availability of Information to the Public

A charitable organization should make information about its operations widely available to the public.
For many private foundations and many public charities, the annual IRS information return serves as a primary source of information about their finances, governance, operations, and programs for federal regulators, the public, and many state charity officials.
An organization’s website or other online presence can be a key vehicle for transparency and accountability and communicating the organization’s work and progress.

	Created by Helena Banks over 4 years ago

	Copied by Helena Banks over 4 years ago

CFRE Fundraising (Ethics, Accountability, and Professionalism) Note on TASKS 1, 2 & 3, created by Helena Banks on 17/06/2020.