ETHICS ETHICS

A Guiding Force in Fundraising A Guiding Force in Fundraising

AFP Greater Toronto Chapter
January 17, 2007
Jeff Beach, Executive Director
VON Canada Foundation
Arthur Peters, Executive Director
Share Life
Ethics Ethics -- Today's Context Today's Context
W registered charities and many more
non-profit organizations in Canada today
W NearIy aII organizations raise funds
W Many techniques empIoyed in fundraising
W Organizations must consider not just how to
acquire funds but accountabiIity
responsibiIity and trustworthiness
W Extends to fiduciary responsibiIity in spending
money that is raised
W PoIicies required to faciIitate ethicaI
fundraising
efining Ethics efining Ethics
W The discipIine deaIing with what is good and
bad or right and wrong or with moraI duty and
obIigation a group of moraI principIes or set of
vaIues and the principIes of conduct governing
an individuaI or a profession
W Character or the ideaIs of character manifested
by a race or peopIe
'To give away money is an easy matter, and in any man's power. But to decide to
whom to give it, and how large, and when, and for what purpose is neither in
every person's power, nor is it an easy matter."
- Aristotle (384 - 322 B.C.)
The Ethics of Philanthropy The Ethics of Philanthropy
W Are the weaIthy obIiged by the virtue of their
status to be phiIanthropic?
W Ethics - appIicabIe for mastering the arts of
both raising and distributing funds for worthy
causes
W Donor intent - ensuring that funds are utiIized
in the manner intended by donor (e.g.
designated donations)
W Drawing Iines - moraIity - what we shouId and
shouId not do
istorical Context istorical Context
W AristotIe - virtuous behaviour and charitabIe
intent
W Tithing and stewardship
W John Stuart MiII - UtiIitarianism
W ImmanueI Kant - RationaI intuition
W Soren Kierkegaard - Passion based on faith
&tilitarianism vs. Formalism &tilitarianism vs. Formalism
Thinking and acting ethicaIIy invoIves two major
frameworks:
UtiIitarianism: greatest probabIe good
FormaIism: the most rationaI universaI duty
(what is thought to be intrinsicaIIy "right")
Philanthropy under Capitalism Philanthropy under Capitalism
W Concern for the character of the recipient not
that of the giver
W Focus on soIving the probIems in this Iife not
on "saving souIs for the next"
W Preoccupation with upIifting the community
not satisfying the conscience
W Carnegie's "GospeI of WeaIth"
W The common good vs. seIf interests
Principles of Ethics in Principles of Ethics in
Philanthropy Philanthropy
W Respect
W Beneficence
W Trust
The Accountable The Accountable
Non Non- -Profit Organization Profit Organization
The accountabIe non-profit organization is
responsibIe for:
Mission fuIfiIIment
Leadership on behaIf of pubIic interest
Stewardship
QuaIity
FinanciaI accountabiIity
EthicaI fundraising
#esponsibilities of those #esponsibilities of those
#aising Funds #aising Funds
Fundraisers have a 'tripIe agent'
responsibiIity to:
The donors
The organization
The cause
A Code of Ethics A Code of Ethics
for Fundraising for Fundraising
W RoIe responsibiIity is basic to the nature of
today's "code of ethics"
W Ethics in phiIanthropy invoIves vaIues:
Commitment beyond seIf
Obedience to and commitment beyond Iaw
Commitment to pubIic good
Respect vaIue and dignity of individuaIs
ToIerance diversity and sociaI justice
AccountabiIity openness and honesty
Prudent appIication of resources
AFP AFP - - The Association The Association
of Fundraising Professionals of Fundraising Professionals
W ProfessionaI association of individuaIs
responsibIe for generating phiIanthropic
support for non-profit and charitabIe
organizations
W Promotes and enforces principIes of
stewardship donor trust and effective and
ethicaI fundraising
AFP Code of Ethical Principles AFP Code of Ethical Principles
and 8tandards of and 8tandards of
Professional Practice Professional Practice
AFP members aspire to EthicaI PrincipIes:
Honesty truthfuIness integrity
PhiIanthropic mission above personaI gain
Inspire others
Improve knowIedge
VaIue privacy freedom of choice interests
cuIturaI diversity respect
Adhere to Iaws and advocacy of such
Bring credit to the profession
AFP 8tandards of AFP 8tandards of
Professional Practice Professional Practice
W ProfessionaI obIigations
W SoIicitation and use of
phiIanthropic funds
W Presentation of information
W Compensation
The onor Bill of #ights The onor Bill of #ights
W To be informed of the mission and how funds
wiII be used
W To be informed of who the board is and expect
the board to be responsibIe
W To have access to financiaI statements
W Assurance that gifts are used for the purposes
for which they are given
W To receive appropriate acknowIedgement and
recognition
The onor Bill of #ights The onor Bill of #ights
W To be assured of confidentiaIity and respect
W To expect professionaI reIationships
W To be informed whether soIicitors are
voIunteers staff or hired soIicitors
W To have the opportunity of anonymity and to
be deIeted from "Iists"
W AbiIity to ask questions and receive prompt
and truthfuI answers
magine Canada magine Canada
W Launched in 2 to support Canada's
charities non-profit organizations and
community-minded businesses
W Gives voice to the work that they do
W AmaIgamation of the CoaIition of NationaI
VoIuntary Organizations and the Canadian
Centre for PhiIanthropy
Ethical Fundraising and Ethical Fundraising and
Financial Accountability Code Financial Accountability Code
W Issued by Imagine Canada (formerIy Centre for
PhiIanthropy)
W Set of standards and benchmarks that enabIes
responsibIe management of funds and
accurate & compIete financiaI reporting
W Created in response to growing pubIic concern
about accountabiIity in the sector
W Any Canadian charity can adopt
W Code can be used aIone or in conjunction with
ethicaI fundraising "trust-mark"
Ethical Fundraising and Ethical Fundraising and
Financial Accountability Code Financial Accountability Code
EIements of the Code:
Donor's rights
Fundraising practices
FinanciaI accountabiIity
CAGP CAGP -- Code of Ethics Code of Ethics
W Canadian Association of Gift PIanners (CAGP) aIso has
a Code of Ethics
Objectives
Integrity and RoIe of Members
DiscIosure of Information
Protection of Interested Parties
Terms and Conditions of Gift
ConfidentiaIity
ConfIict of Interest
Remuneration
Competence
CompIaints
ee- -Philanthropy Philanthropy
Code of Ethical Practices Code of Ethical Practices
W PhiIanthropic Experience
W Privacy and Security
W DiscIosures
W CompIaints
W Transactions
AFP e AFP e- -onor onor
Bill of #ights Bill of #ights
CompIimentary to Donor BiII of Rights:
Organization name mission status etc. on
website
Access to aIternative contact information
Third party Iogos accurate and expIained
To be informed re. tax receipts
Assured of safe secure transactions
Does contribution go directIy to charity?
Access to privacy poIicy
AbiIity to opt out of soIicitation Iists
Ethics in the Workplace Ethics in the Workplace
W WhiIe ethics may be personaI they take on a different scope when
one becomes part of an organization.
W Many organizations are now incIuding ethics as part of their
empIoyee and training programs
W ImpIementing an ethics program wiII Iead to an organization that:
Is accessibIe to diverse groups and individuaIs
Attracts voIunteers donors and supporters
Strives for exceIIence
Maintains the trust of the pubIic
Sustains a heIping environment
Is at a Iower risk for IegaI actions against it
Ethics in the Workplace Ethics in the Workplace
W Benefits of managing ethics in the workpIace
Attention to business ethics has improved society
Ethics programs heIp maintain a moraI course in turbuIent
times
Ethics programs cuItivate teamwork and productivity
Ethics programs support empIoyee growth and meaning
HeIps to ensure that poIicies are IegaI
Ethics programs heIp to avoid criminaI acts 'of omission'
Ethics programs heIp to manage vaIues associated with
quaIity management strategic pIanning and diversity
management
Ethics programs promote a strong pubIic image
Ethics in the Workplace Ethics in the Workplace
-- Evaluating ecisions Evaluating ecisions
W The 'CLICK' modeI was deveIoped for the FIorida Power
Corporation
C - Consequence - what are the consequences if I do this?
Who wiII benefit who wiII suffer?
L - LegaI - is it IegaI? Are there considerations based on
Iaws?
I - Image - WouId I Iike to see this on the front page of the
newspaper? WiII this decision affect our pubIic image?
C - CuIture - does this decision support or damage our
organizations cuIture and vaIues.
K - Does it cause a knot in my stomach? WouId my mentor or
hero approve?
Case 8tudies Case 8tudies --
The Practice of Ethics The Practice of Ethics
New Thinking New Thinking
on Ethics in Fundraising on Ethics in Fundraising
W Do current ethicaI standards go far enough?
W Importance of donor-based giving
W Eight eIements of "new ethics"
The way in which funds are requested
QuaIity of information presented
Communication focused on donor needs
Requests respond to donor's scheduIe
Donor recognition carefuIIy used
CaIIs made by voIunteers as possibIe
Gift is 'right' amount and appreciated
Each gift defines its own stewardship
#ecommendations #ecommendations
W Every organization shouId review and endorse adoption
of the Imagine Canada EthicaI Fundraising and
AccountabiIity Code
W Review and endorse a Donor BiII of Rights (AFP
AAFRC AHP CAGP CASE)
W PoIicies must be in pIace which promote and safeguard
ethicaI fundraising
Gift acceptance
Revenue sharing
Other poIicies
W AFP - resource to consuIt with
W Other recommendations?
Final Thought. Final Thought.
The question is, when so many others cut corners, shave
the truth, self-deal, believe in the fast buck, and follow the
crowd along the low road of least resistance, can we even
afford to travel the high road of ethical behavior? Frankly,
we can't afford anything else. Any other competitive angle
is a pure crapshoot in today's business world. Companies
with shaky ethics and shabby standards will be crippled as
they try to compete in our changing world.
Price Pritchett, American Psychologist and Entrepreneur
#eferences #eferences
W Anderson A. (1996). thics for Fundraisers. BIoomington IN: Indiana
University Press.
W Association of Fundraising ProfessionaIs (AFP) InternationaI (Various)
www.afpnet.org
W Better Business Bureau. (2). mplementation Guide - Standards for
Charity Accountability. ArIington VA: BBB Wises Giving AIIiance.
W BurIingame D.F. ed. (1997). CriticaI Issues in Fundraising. The
NSFRE/WiIey Fund DeveIopment series. New York: John WiIey &
Sons.
W BurIingame D.F. & HuIse L.J. (1991). Taking Fundraising Seriously.
San Francisco CA: Jossey-Bass PubIishers.
W Canadian Association of Gift PIanners (CAGP) (Various) www.cagp-
acpdp.org
W CoIIins Group. (22). New thinking on ethics and fundraising. -news
from the Collins Group VoIume 1 Issue 2. Retrieved March 1 26
from http://www.enewsbuiIder.net/coIIinsgroup/index197.cfm
#eferences #eferences
W Ethics is Power: DeveIoping an EthicaI CuIture in the
WorkpIace www.poIiticaIsavy.com. ArticIe by Carter
McNamara: CompIete Guide to Et6hics Management: an
EthicaI TooIkit for Managers.
W Ethics Today: PersonaI PracticaI and ReIevant/
www.casanet.org posted December 2.
W HoIIoway R. (2). thics in Fundraising. Retrieved March 1
26 from http://www.eIdis.org/static/DOC147.htm
W Imagine Canada (Various) www.imaginecanada.ca
W Minton F. & Somers L. (1997). !lanned Giving for Canadians.
Waterdown ON: SomerviIIe.
W RiIey J. (1992). PhiIanthropy Under CapitaIism. In D.F.
BurIingame (Ed.) The Responsibilities of Wealth. (pp. 67-79).
BIoomington IN: Indiana University Press.
W Sweatman J. (2). Bequest Management for Charitable
Organizations. Toronto ON: Butterworths.