Ethics in Fundraising AFP JULY 2020 WEBINAR PRESENTED BY: Alisha Johnson Perry, FirstLine Schools Gia Soublet, PhD, Soublet Consulting
What is Ethics? The discipline dealing with what is good and bad and with moral duty and obligation. – Merriam-Webster Dictionary “…an inner drive to improve the quality of life through the causes they serve. They serve the ideal of philanthropy, are committed to the preservation and enhancement of volunteerism; and hold stewardship of these concepts as the overriding direction of their professional life. They recognize their responsibility to ensure that needed resources are vigorously and ethically sought and that the intent of the donor is honestly fulfilled.” – AFP Code of Ethical Standards
TRUE OR FALSE? Ethics is an exact science.
TRUE OR FALSE? Ethics is an exact science.
TWO-FOLD RANGE OF ORGANIZATIONAL ETHICS INTERNAL EXTERNAL Worker health & safety Truth in fundraising, ★ ★ Workplace free of marketing & PR ★ harassment or Meeting obligations to ★ discrimination donors, vendors, and Fairness / equal external stakeholders ★ opportunity in all HR Maintaining donor’s ★ activities (hiring, firing, personal data in a secure promotion) manner Moral common sense (e.g. Providing high quality ★ ★ prevent harm, respect, service to constituents honesty, promise keeping, Ensuring product safety ★ charitable, model behavior) Protecting the environment ★ Observing letter and spirit Observing letter and spirit ★ ★ of law regarding nonprofit of law regarding nonprofit internal activities external activities
KEY SOURCES OF GUIDANCE ON ETHICS ❖ Our organization’s internal code of ethics Board approved development/ fundraising policies; workplace ➢ commitments ❖ Independent Sector Interim sanctions; Principles of Good Governance ➢ ❖ Association Fundraising Professionals (AFP) Code of Ethics; Standards of Practice ➢ ❖ Association of Healthcare Philanthropy (AHP) ❖ Council for Advancement and Support of Education (CASE) ❖ Giving Institute ❖ Donor Bill of Rights (AFP , AHP , CASE, Giving Institute) ❖ National Association of Independent Schools ❖ Making Ethical Decisions (Josephson)
Association of Fundraising Professionals CODE OF ETHICAL STANDARDS Adopted 1964; amended Oct. 2014 AFP believes that ethical behavior 1) fosters the development and growth of fundraising professionals and the fundraising profession and 2) enhances philanthropy and volunteerism. For the list of 25 ethical standards, visit: https://afpglobal.org/ethicsmain/code-ethical-standards KEY language: “MEMBERS SHALL/ NOT….”
COMMUNICATION OF ETHICS FALLS INTO THREE MAIN AREAS Descriptive Metaethics Normative Ethics Ethics Abstract discussions Ethical judgments Factual accounting concerning issues concerning right of what is occurring such as cultural and wrong, and differences, attempts to objectivity, and describe what differences between ought to be scientific and religious ethical systems
Situation: ABC Charitable institution considers it wrong to pay a finder’s fee to a financial planner who brings forward a planned gift. XYZ Nonprofit has paid a finder’s fee on several occasions. Descriptive Metaethics Normative Ethics Ethics (Abstract discussions about cultural differences, (Factual accounting of (Ethical judgments objectivity, and concerning right and what actually is differences between wrong, and attempts occurring - no scientific and religious to describe what ought judgment) ethical systems) to be) No right or wrong, only mere Mere reporting that There is a code of acknowledgement the situation above ethics that deems that there is clear has occurred. what is right and disagreement on wrong. practice and custom between different organizations.
Whose point of view should guide our ethical standards, particularly when some decisions are not as clear as following the rules? The donor’s. 66% of Americans said they have a great deal or fair confidence in charities. 34% said they have little or no confidence in charities. Yet, 80% believe charities do a very good or somewhat good job of helping people. Chronicle of Philanthropy study (2015)
The Donor Bill of Rights Guides organization’s ethical practices from the Donor’s Point of View Philanthropy (financial, volunteer in-kind) Donors’ voluntary action Donors’ trust and respect of the fundraiser/ organization meeting a need Common good
DONOR’S BILL OF RIGHTS 1. To be informed of the organization's mission , of the way the organization intends to use donated resources , and of its capacity to use donations effectively for their intended purposes. 2. To be informed of the identity of those serving on the organization's governing board , and to expect the board to exercise prudent judgment in its stewardship responsibilities. 3. To have access to the organization's most recent financial statements . 4. To be assured their gifts will be used for the purposes for which they were given. 5. To receive appropriate acknowledgement and recognition . 6. To be assured that information about their donation is handled with respect and with confidentiality to the extent provided by law. 7. To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature. 8. To be informed whether those seeking donations are volunteers, employees of the organization or hired solicitors. 9. To have the opportunity for their names to be deleted from mailing lists that an organization may intend to share. 10. To feel free to ask questions when making a donation and to receive prompt, truthful and forthright answers.
ETHICAL FUNDRAISING DILEMMAS Professional fundraiser (with personal accountability) must resolve ethical conflicts through three steps when the organization (to whom he/she/they have loyalty/ fidelity) decides to use funds given for one purpose by a donor (owed promise keeping, integrity, and honesty) : 1) Take into account and reflect a concern for the interests and well-being of all shareholders (constituents included) 2) Uphold ethical values and principles over non-ethical ones 3) Violate an ethical principle only when it is clearly necessary to advance another true ethical principle which according to the decision maker’s conscience will produce the greatest balance of good in the long run.
ETHICAL DILEMMAS RELATED TO CURRENT EVENTS COVID-19 Redirecting restricted funds raised for one project/position to an emergent need ● Postponement/Cancellation of Sponsored events ● Organization restructuring that changed/removed a funded position Balancing the sensitivity of the donors’ needs with that of your constituents’ needs Striking the right tone: empathetic advocacy ●
Brian Saber, President of Asking Matters (our emphasis on “YOU” added below)
ETHICAL DILEMMAS RELATED TO CURRENT EVENTS HEIGHTENED AWARENESS OF RACIAL INEQUITY Donor selective with whom they will communicate/conduct business Donor makes large gift, but openly exhibits bias towards a specific population Organizational misrepresentation of mission and values to solicit funds and/or ingratiate donors.
The past few months have been challenging, testing all of our limits. At the same time, it has also been amazing to see more and more folks owning their complicity and power, being bolder, and challenging established norms. Our communities cannot afford for us to doubt ourselves, be too deferential, or always default to philosophies and processes that we were trained in. -Vu Le of Nonprofit AF blog post
Ethical Scenario Your president has informed you that she intends to eliminate a program and use all prior gifts to that program towards a new renovation project. You remind her of the importance of honoring the donors’ intent; however, she is not concerned. As the development officer who secured these gifts, how do you handle this situation?
Ethical Scenario You are working with a prospective donor on a major gift and prospect research discovers that at least one source of his income is (allegedly) from an illegal business. Do you pursue the gift and ensure the funds are separate from his abhorrent business activities?
Ethical Weigh-in Do you pursue the gift and ensure the funds are separate from his abhorrent business activities?
FUNDRAISERS’ ROLE IN RESOLVING COMMON ETHICAL DILEMMA OF THE TAINTED GIFT Resolution of the Conflict between two goods starts with acceptance that there are only ethical questions as philosophy and practical application clash. GOOD GOOD VERSUS high moral standards ● ● philanthropy that on whom to accept supports an gifts based on donor organization serving the actions and public good. reputation
Ethical After Thoughts Do you pursue the gift??
Ethical Scenario A Trustee makes a multi-million dollar gift to support a new performing arts center, then independently selects the architectural firm that will design the building. In fact, the donor makes fulfillment of her gift contingent on using her chosen firm. How do you proceed?
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