Nonprofit Fundraising Strategy: A Guide to Ethical Decision Making and Regulation for Nonprofit Organizations + Website

Praise for Janice Gow Pettey′s books

"This volume, edited by one of today′s respected and prominent fundraising professionals, serves as an excellent resource for fundraising practitioners as well as their bosses and boards. As a compilation of writing by key leaders, particularly those who have been involved in ethics discussions and service on the AFP ethics committee, provides practical advice in accessible ways and can serve as a much–needed, useful ′go to′ volume. Ethics questions confront fundraisers and nonprofit teams on a regular basis, and the advice in this volume is thoughtful, useful, current, and well crafted."
Dr. Lilya Wagner, CFRE, Director, Philanthropic Service for Institutions; Faculty, Indiana University Center on Philanthropy and The Fund Raising School

"This collection from many experienced and good fundraising–related professionals is a thorough review of the non–negotiable nature of ethics in the profession. The AFP standards, the global benchmark for ethical behavior in fundraising, is supplanted, examined, and made practical here. Kudos to Janice Gow Pettey, an expert in this area, for providing such a helpful text."
Bob Carter, President, Bob Carter Companies and Chair, AFP

"What a timely publication! Here are the luminaries in the field of ethics in fundraising, a topic that all professional fundraisers must engage with in order to build the trust and confidence of the giving public."
Dr. Sue–Anne Wallace, FAICD, MFIA, CEO, Fundraising Institute Australia; International Observer, AFP′s Ethics Committee

"[This book] is an invaluable collection of essays based on the rich experience of philanthropic leaders. The book is full of cases, anecdotes, codes, and other hands–on material as well as wise reflections on the central role of ethics in fundraising."
Michael O′Neill, Professor of Nonprofit Management, University of San Francisco

"The case studies alone make this book a valuable contribution to the work of fundraisers and nonprofit board members. The authors′ applications of ethics codes and standards to the case studies offer a bonus. Part Two of the book puts on the table a few of the most vexing challenges the nonprofit sector faces superb."
Timothy L. Seiler, Director, Public Service and The Fund Raising School, The Center on Philanthropy at Indiana University

Acknowledgments xiii

About the Editor xv

Contributing Authors xvi

Foreword xvii

Andrew Watt

Preface: Ethical Will xix
Robert L. Payton

Introduction xxv

CHAPTER 1 Fundraisers and the Good Life 1
Paul C. Pribbenow, PhD, CFRE

Defining the Virtues 6

Obstacles to Living the Good Life 10

Growing as Ethical Fundraisers 13

About the Author 14

CHAPTER 2 The Appearance of Impropriety 17
Dianne Lister, LLB, CFRE

The Link between Ethics and Fiduciary Duty 18

Reputation Management and Impropriety 19

Conflict of Interest and the Appearance of Impropriety 21

The Continuum of Suspect Behavior 24

A Test for Impropriety beyond Conflict of Interest 27

A Word about Diversity 30

Common Rationalizations 30

In Defense of Impropriety 31

About the Author 32

CHAPTER 3 Rights of Donors 35
James M. Greenfield, ACFRE, FAHP

Is It Donor Relations or Donors Rights? 36

A Donor Bill of Rights 39

Stewardship of Donors Rights 48

Conclusion 50

About the Author 50

CHAPTER 4 Public Privacy: An Exploration of Issues of Privacy and Fundraising 53
Eugene A. Scanlan

The Right to Privacy 56

The Internet Explosion 57

Privacy and Security 59

Donors Rights, Fundraisers

Responsibilities 60

The Dilemma of Privacy 61

Prospecting for Donors 62

Donors and Donor Interest 66

Gift Restrictions 67

Donor Wishes about Privacy of Information 68

Controversial Donors 70

Inside Your Organization 71

Donor Recognition 72

Databases 73

Some Principles 74

About the Author 76

CHAPTER 5 Tainted Money 79
Eugene R. Tempel, EdD

Definitions of Tainted Money 80

The AFP Code of Ethical Principles and Standards and Tainted Money 87

Tainted–Money Dilemmas 95

Policies and Procedures for Dealing with Tainted Money 104

Conclusion 106

About the Author 107

CHAPTER 6 Compensation 111
Paulette V. Maehara, CFRE, CAE

Impact of Professional Ethics and Standards 111

Acceptable Compensation and Incentives 119

The AFP Code and Business 123

About the Author 123

CHAPTER 7 Using Donations as Intended 127
Paul Marcus, LLB, CFRE

Before the Gift 128

After the Gift 133

Conclusion 138

About the Author 139

CHAPTER 8 Ethical Considerations of Making the Ask 141
Jerry Rohrbach, CFRE, ChFC

What Is at the Heart of Soliciting Gifts? 141

How Are You Approaching Donor Prospects for Gifts? 142

What Solicitation Laws and Regulations

Does a Charity Need to Comply With? 150

What Policies Create the Best Environment for Making the Ask? 154

About the Author 159

CHAPTER 9 Honesty and Full Disclosure 161
Samuel N. Gough Jr., CFRE

Honesty 164

Full Disclosure 170

Conclusion 180

About the Author 181

CHAPTER 10 Choosing a Leadership Role: A Vision for Action 185
Barbara A. Levy, ACFRE

Step 1: Initiating Dialog 189

Step 2: Dissemination and Promulgation 199

Teaching Steps to Ethical Decision Making 201

The Plan for Dissemination 204

Public Affairs and Public Policy 208

About the Author 211

CHAPTER 11 The Context and Development of International Codes and Standards 213
Andrew Watt, FInstF

Civil Society and Globalization: Two Key Influences on the Development of Regulatory and Self–Regulatory Structures 214

Civil Society 216

Moving Towards Regulation of Nonprofits in a Global Society 218

Cross–Border Regulation 219

Accountability 222

Self–Regulation 223

Fundraising Associations and Their Differing Approaches to Self–Regulation 226

Dutch Code of Conduct for Fundraisers 227

French Code of Professional Ethics 228

International Codes of Professional Ethics 231

About the Author 232

CHAPTER 12 Turning a Profit in the Nonprofit World: The Ethical Responsibilities of Businesses in the Fundraising Sector 235
Owen Watkins

Standard No. 14 238

Standard No. 7 239

About the Author 242

CHAPTER 13 Ethical Decision Making 245
Janice Gow Pettey

Frameworks for Ethical Decision Making 246

Codes, Creeds, and Standards 249

About the Author 253

CHAPTER 14 Between the Real and the Ideal: A Meditation on the Future of Ethical Reflection for Philanthropic Fundraisers 255
Paul C. Pribbenow, PhD

Philanthropy Is a Public Practice 258

Fundraising as Vocation 259

Reflective Practice 260

About the Author 261

CHAPTER 15 Assessing Ethical Fundraising: The Creation and Use of the AFP Ethics Assessment Inventory 263
Robert Shoemake

Background 264

Building the AFP Ethics Assessment Inventory 264

Critical Dimensions of Ethical Fundraising 267

Taking the AFP Ethics Assessment Inventory 269

Using the AFP Ethics Assessment Inventory 273

What We Are Learning 276

Frequently Asked Questions (FAQs) 277

About the Author 279

CHAPTER 16 Regulation, Ethics, and Philanthropy 281
Audrey Kintzi, Cathlene Williams

Content Presentations 282

Discussion Summaries 286

Case Studies 298

About the Authors 303

CHAPTER 17 Leadership, Governance, and Giving 305
Robert Fogal

Content Presentations 305

Discussion Summaries 319

About the Author 323

CHAPTER 18 Both Sides Now: The Ethics of Grantmaking and Grantseeking 325
Bruce Sievers, PhD

The Trust Relationship 327

The Grants Process 328

Accountability 331

Public Goods 334

About the Author 338

CHAPTER 19 Ethical Relationships between Grantees and Funders 343
Carleen K. Rhodes, CFRE

First: Ethics Needs to Be Viewed as a Bottom–Line Issue for Nonprofits and Foundations Alike 344

Second: We Need to Actively Practice Our Ethical Principles 347

Third: We re at the Same Table 350

Fourth: While Most of Us Have Accepted the Challenge of Striving to Be Personally and Institutionally Ethical and Accountable, We Have a Much Larger Ethical Obligation across the Sector and Society That Requires Time and Attention 351

One Final Point 352

About the Author 352

CHAPTER 20 Regulation in the Nonprofit Sector: Symbolic Politics and the Social Construction of Accountability 355
Robert D. Herman

Perspectives on Regulation 356

Ethics and a Culture of Integrity 362

About the Author 364

CHAPTER 21 Restoring Public Confidence in the Nonprofit Sector 367
William A. Schambra

Public Confidence 369

Faith–Based Institutions in the Nonprofit Sector 372

An Approach for the Future 376

About the Author 377

APPENDIX A Ethical Codes and Standards: Association of Fundraising Professionals (AFP) Code of Ethical Principles 379

Association for Healthcare Philanthropy (AHP) Statement of Professional Standards and Conduct

Association of Professional Researchers for Advancement (APRA) Statement of Ethics (Revised August 2004)

American Society of Association Executives (ASAE) Standards of Conduct

Council for Advancement and Support of Education (CASE) Statement of Ethics

ePhilanthropy Code of Ethical Online Philanthropic Practices

Giving USA Foundation Standards of Practice and Code of Ethics: Professional Code of Ethics

Independent Sector: Obedience to the Unenforceable

Model Standards of Practice for the Charitable Gift Planner

The Salvation Army Fundraising Code of Ethics

Statement of Ethics and Accountability for Washington Grantmakers

APPENDIX B Websites for International Fundraising Codes of Ethics and Standards 423

APPENDIX C Statement of Values and Standards for Excellence of the Tucson Symphony Society dba Tucson Symphony Orchestra 427

Introduction

Statement of Values

References 435

Index 443

JANICE GOW PETTEY, EdD, CFRE, is Vice President of Resource Development at The Asia Foundation. She is the founder of J.G. Pettey & Associates, a consulting firm serving foundations and nonprofits. Her ethics presentations span three continents. She is Chair Emeritus of AFP′s International Ethics Committee. Janice is also the author of Cultivating Diversity in Fundraising and Ethical Fundraising: A Guide for Nonprofit Boards and Fundraisers (Wiley).