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ETHICS A Guiding Force in Fundraising

Ethics ? Today's Context. 80,000 registered charities and many more non-profit organizations in Canada todayNearly all organizations raise fundsMany techniques employed in fundraisingOrganizations must consider not just how to acquire funds, but accountability, responsibility and trustworthiness

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ETHICS A Guiding Force in Fundraising

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    1. ETHICS A Guiding Force in Fundraising

    2. Ethics – Today’s Context 80,000+ registered charities and many more non-profit organizations in Canada today Nearly all organizations raise funds Many techniques employed in fundraising Organizations must consider not just how to acquire funds, but accountability, responsibility and trustworthiness Extends to fiduciary responsibility in spending money that is raised Policies required to facilitate ethical fundraising

    3. Defining Ethics The discipline dealing with what is good and bad or right and wrong or with moral duty and obligation, a group of moral principles or set of values and the principles of conduct governing an individual or a profession Character or the ideals of character manifested by a race or people

    5. The Ethics of Philanthropy Are the wealthy obliged by the virtue of their status to be philanthropic? Ethics – applicable for mastering the arts of both raising and distributing funds for worthy causes Donor intent – ensuring that funds are utilized in the manner intended by donor (e.g. designated donations) Drawing lines – morality – what we should and should not do

    6. Historical Context Aristotle - virtuous behaviour and charitable intent Tithing and stewardship John Stuart Mill – Utilitarianism Immanuel Kant – Rational intuition Soren Kierkegaard – Passion based on faith

    7. Utilitarianism vs. Formalism Thinking and acting ethically involves two major frameworks: Utilitarianism: greatest probable good Formalism: the most rational universal duty (what is thought to be intrinsically “right”)

    8. Philanthropy under Capitalism Concern for the character of the recipient, not that of the giver Focus on solving the problems in this life, not on “saving souls for the next” Preoccupation with uplifting the community, not satisfying the conscience Carnegie’s “Gospel of Wealth” The common good vs. self interests

    9. Principles of Ethics in Philanthropy Respect Beneficence Trust

    10. The Accountable Non-Profit Organization The accountable non-profit organization is responsible for: Mission fulfillment Leadership on behalf of public interest Stewardship Quality Financial accountability Ethical fundraising

    11. Responsibilities of those Raising Funds Fundraisers have a ‘triple agent’ responsibility to: The donors The organization The cause

    12. A Code of Ethics for Fundraising Role responsibility is basic to the nature of today’s “code of ethics” Ethics in philanthropy involves values: Commitment beyond self Obedience to and commitment beyond law Commitment to public good Respect value and dignity of individuals Tolerance, diversity and social justice Accountability, openness and honesty Prudent application of resources

    13. AFP - The Association of Fundraising Professionals Professional association of individuals responsible for generating philanthropic support for non-profit and charitable organizations Promotes and enforces principles of stewardship, donor trust and effective and ethical fundraising

    14. AFP Code of Ethical Principles and Standards of Professional Practice AFP members aspire to Ethical Principles: Honesty, truthfulness, integrity Philanthropic mission above personal gain Inspire others Improve knowledge Value privacy, freedom of choice, interests, cultural diversity, respect Adhere to laws and advocacy of such Bring credit to the profession

    15. AFP Standards of Professional Practice Professional obligations Solicitation and use of philanthropic funds Presentation of information Compensation

    16. The Donor Bill of Rights To be informed of the mission and how funds will be used To be informed of who the board is and expect the board to be responsible To have access to financial statements Assurance that gifts are used for the purposes for which they are given To receive appropriate acknowledgement and recognition

    17. The Donor Bill of Rights To be assured of confidentiality and respect To expect professional relationships To be informed whether solicitors are volunteers, staff or hired solicitors To have the opportunity of anonymity and to be deleted from “lists” Ability to ask questions and receive prompt and truthful answers

    18. Imagine Canada Launched in 2005 to support Canada's charities, non-profit organizations and community-minded businesses Gives voice to the work that they do Amalgamation of the Coalition of National Voluntary Organizations and the Canadian Centre for Philanthropy

    19. Ethical Fundraising and Financial Accountability Code Issued by Imagine Canada (formerly Centre for Philanthropy) Set of standards and benchmarks that enables responsible management of funds and accurate & complete financial reporting Created in response to growing public concern about accountability in the sector Any Canadian charity can adopt Code can be used alone or in conjunction with ethical fundraising “trust-mark”

    20. Ethical Fundraising and Financial Accountability Code Elements of the Code: Donor’s rights Fundraising practices Financial accountability

    21. CAGP – Code of Ethics Canadian Association of Gift Planners (CAGP) also has a Code of Ethics Objectives Integrity and Role of Members Disclosure of Information Protection of Interested Parties Terms and Conditions of Gift Confidentiality Conflict of Interest Remuneration Competence Complaints

    22. e-Philanthropy Code of Ethical Practices Philanthropic Experience Privacy and Security Disclosures Complaints Transactions

    23. AFP e-Donor Bill of Rights Complimentary to Donor Bill of Rights: Organization name, mission, status, etc. on website Access to alternative contact information Third party logos accurate and explained To be informed re. tax receipts Assured of safe, secure transactions Does contribution go directly to charity? Access to privacy policy Ability to opt out of solicitation, lists

    24. Ethics in the Workplace While ethics may be personal, they take on a different scope when one becomes part of an organization. Many organizations are now including ethics as part of their employee and training programs Implementing an ethics program will lead to an organization that: Is accessible to diverse groups and individuals Attracts volunteers donors and supporters Strives for excellence Maintains the trust of the public Sustains a helping environment Is at a lower risk for legal actions against it

    25. Ethics in the Workplace Benefits of managing ethics in the workplace Attention to business ethics has improved society Ethics programs help maintain a moral course in turbulent times Ethics programs cultivate teamwork and productivity Ethics programs support employee growth and meaning Helps to ensure that policies are legal Ethics programs help to avoid criminal acts ‘of omission’ Ethics programs help to manage values associated with quality management, strategic planning, and diversity management Ethics programs promote a strong public image

    26. Ethics in the Workplace – Evaluating Decisions The ‘CLICK’ model was developed for the Florida Power Corporation C – Consequence – what are the consequences if I do this? Who will benefit, who will suffer? L – Legal – is it legal? Are there considerations based on laws? I – Image – Would I like to see this on the front page of the newspaper? Will this decision affect our public image? C – Culture – does this decision support or damage our organizations culture and values. K – Does it cause a knot in my stomach? Would my mentor or hero approve?

    27. Case Studies – The Practice of Ethics

    28. New Thinking on Ethics in Fundraising Do current ethical standards go far enough? Importance of donor-based giving Eight elements of “new ethics” The way in which funds are requested Quality of information presented Communication focused on donor needs Requests respond to donor’s schedule Donor recognition carefully used Calls made by volunteers as possible Gift is ‘right’ amount and appreciated Each gift defines its own stewardship

    29. Recommendations Every organization should review and endorse adoption of the Imagine Canada Ethical Fundraising and Accountability Code Review and endorse a Donor Bill of Rights (AFP, AAFRC, AHP, CAGP, CASE) Policies must be in place which promote and safeguard ethical fundraising Gift acceptance Revenue sharing Other policies AFP – resource to consult with Other recommendations?

    30. Final Thought…

    31. References Anderson, A. (1996). Ethics for Fundraisers. Bloomington, IN: Indiana University Press. Association of Fundraising Professionals (AFP) International (Various) www.afpnet.org Better Business Bureau. (2003). Implementation Guide – Standards for Charity Accountability. Arlington, VA: BBB Wises Giving Alliance. Burlingame, D.F., ed. (1997). Critical Issues in Fundraising. The NSFRE/Wiley Fund Development series. New York: John Wiley & Sons. Burlingame, D.F. & Hulse, L.J. (1991). Taking Fundraising Seriously. San Francisco, CA: Jossey-Bass Publishers. Canadian Association of Gift Planners (CAGP) (Various) www.cagp-acpdp.org Collins Group. (2002). New thinking on ethics and fundraising. E-news from the Collins Group, Volume 1, Issue 2. Retrieved March 10, 2006 from http://www.enewsbuilder.net/collinsgroup/index000015097.cfm

    32. References Ethics is Power: Developing an Ethical Culture in the Workplace, www.politicalsavy.com. Article by Carter McNamara: Complete Guide to Et6hics Management: an Ethical Toolkit for Managers. Ethics Today: Personal, Practical and Relevant/ www.casanet.org, posted December 2003. Holloway, R. (2003). Ethics in Fundraising. Retrieved March 10, 2006 from http://www.eldis.org/static/DOC14700.htm Imagine Canada (Various) www.imaginecanada.ca Minton, F., & Somers, L. (1997). Planned Giving for Canadians. Waterdown, ON: Somerville. Riley, J. (1992). Philanthropy Under Capitalism. In D.F. Burlingame, (Ed.), The Responsibilities of Wealth. (pp. 67-79). Bloomington, IN: Indiana University Press. Sweatman, J. (2003). Bequest Management for Charitable Organizations. Toronto, ON: Butterworths.

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