TASKS 1, 2 & 3

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.

SOURCE: https://independentsector.org/programs/principles-for-good-governance-and-ethical-practice/

[Key Knowledge Area] Methods and processes for ethical decision making Tough choices pit one right value against another. Each side is firmly rooted in our basic core values. Rushworth Kidder, Founder Institute for Global Ethics To make highly ethical, defensible, and productive decisions, you must rely on a strong code of ethics and a sound decision-making model. When that happens you will get more donors, raise more money, and increase your own credibility as a fundraising professional.   AFP Franklin Forum The Vision Test—Can you look yourself in the mirror and tell yourself that the position you have taken is okay? The What-Would-Your-Parents-Say Test—Could you explain to your parents the rationale for your actions? If you could look them in the eye and not get a quizzical response, or be sent to your room, then proceed. The Kid-On-Your-Shoulders Test— Would you be comfortable if your children were observing you? Are you living the example you preach? The Publicity Test—Would you be comfortable if your decision appeared on the front page of the [newspaper] tomorrow? Or was mentioned on the nightly news? Ethical decision-making is a matter of interweaving ultimate concerns with the facts and considerations of a particular situation. Marilyn Fischer Three Basic Value Commitments for Fundraisers Organizational Mission Relationships Personal Integrity CHART Albert Anderson Three Principles of Ethical Fundraising RESPECT - For donors and their generosity BENEFICENCE - A moral obligation of doing good work TRUST - Developing and Maintaining Trust by: Truth-telling, Promise keeping, Accountability, Fairness, Fidelity of purpose The Seven-Step Path to Better Decisions Stop and Think Clarify Goals Determine Facts Develop Options Consider Consequences Choose Monitor And Modify You still may not come to the right answer, but you will have thought through the wrong ones. The idea is to come to best defensible decision.

SOURCES: Michael J. Rosen, Legacy Leaders Inc., The Seven-Step Path to Better Decisions  

  6.2 Communicate principles of ethical fundraising to stakeholders to promote ethical practices and strengthen a culture of philanthropy. Remembering the Eight Components of an Effective Infrastructure. All organizations need the first 7 but a strong culture of philanthropy is essential to productive fundraising. In a strong culture of philanthropy everyone accepts and celebrates these points: Philanthropy means giving time and/or money. A philanthropist is anyone who gives time and/or money, regardless of the amount Everyone embraces philanthropy as an essential component of civic engagement and a healthy community, not merely a means to carry out the organization’s mission. A strong culture exists when people within the organization share values. A weak culture results when there is little alignment of values. To achieve and sustain maximum donor revenue nonprofits depend upon a strong culture of philanthropy.

SOURCES: Strategic Fund Development: Building Profitable Relationships That Last 3rd Edition, by Simone P. Joyaux (Pg.50) Keep Your Donors, The Guide to Better Communications & Stronger Relationships – Tom Ahern, Simone P. Joyaux

6.2 Communicate principles of ethical fundraising to stakeholders to promote ethical practices and strengthen a culture of philanthropy. [Key Knowledge Area] Personal privacy and information protection Donor Bill of Rights 10 specific moral principles that establish a covenant donors should expect every nonprofit organization to observe in their behalf Relevant sections of the Donor Bill of Rights include: VI. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law. VII. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature. IX. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share. International Statement of Ethical Principles in Fundraising includes the following expected behavior related to privacy: Demonstrate concern for the interests and well-being of individuals affected by their actions; value the privacy, freedom of choice and interests of all those affected by their actions. Privacy is not an easy and straightforward issue. Funds given to nonprofits by donors must be acknowledged and recorded reported, including providing information to other staff, boards of directors or trustees, possibly auditors, and definitely to outside agencies, such as state agencies and the Internal Revenue Service through the IRS 990 form. As fundraisers, we have an obligation to be donor-centered while balancing the needs of our organizations. Ultimately the donor’s wishes must be respected insofar as is possible.      

SOURCES: Ethical Fundraising: A Guide for Nonprofit Boards and Fundraisers, Janice Gow Pettey

6.2 Communicate principles of ethical fundraising to stakeholders to promote ethical practices and strengthen a culture of philanthropy. [Key Knowledge Area] Ethical principles relevant to cultivating, securing, and accepting gifts Ethical Guidelines for Individuals: (except as required by applicable laws) Right to define, except as required by applicable laws, the limits of information, both written and verbal, he or she will provide to an organization. Right to determine what specific information may be made public beyond the internal operations and leadership of the organization. Ethical Guidelines for Organizations: Obligation to define the necessary information it needs from each donor, prospect, or volunteer to meet its information and reporting needs, how this information will be kept, and who will have access to it within the organization. Have a written statement of what information it needs to meet its internal and reporting requirements, how this information is kept, how accessible it is, and the individual’s rights to privacy of personal information. Responsibility of determining what information from the donor, volunteer, or prospect may be presented beyond the staff and leadership of the organization and adhering to the wishes of each individual involved. Must take steps to ensure that the wishes of each donor, volunteer, and prospect in regard to his or her information and its privacy and confidentiality are carried out to the best of the ability of each staff member, board member, and other volunteers. Fully inform all staff members, leadership, and volunteers of its information privacy policies and procedures, the rights of individuals and other organizations to have their information protected, and steps taken to control access to this information. Fully inform all staff members, leadership, and volunteers of the need not to share either formally or informally the personal, private, and/or confidential information of individuals or other organizations outside the bounds of the organization unless required to do so by the applicable laws or by legal action.

SOURCES: Ethical Fundraising: A Guide for Nonprofit Boards and Fundraisers, Janice Gow Pettey - Some Principles

6.3 Promote ethical fundraising as a crucial component of philanthropy to strengthen the non-profit sector and support the sector’s role as a pillar of civil society. Americans distrust large institutions because they are seen as remote, bureaucratic, inflexible, unresponsive, and undemocratic. Discrepancies between organization reality and public expectations Trust is the foundation upon which philanthropy is developed. Transparency, accountability, and ethical behavior build trust and support philanthropy. Fundraising executives are in the best positions to bring our organization'S compelling mission and vision in alignment with current realities.

SOURCES: Ethical Fundraising: A Guide for Nonprofit Boards and Fundraisers, Janice Gow Pettey - Chapter 13