Building on a Foundation of Trust
In October, the Association of Fundraising Professionals celebrates Ethics Awareness Month. If you’ve not downloaded, reviewed and committed to memory the Fundraising Code of Ethics and Donor Bill of Rights, this month provides a good reminder to do so. If, like me, you do substantial grant work, I also recommend reviewing and committing to memory the Grant Professional Association’s Code of Ethics.
Why devote an entire month to ethical fundraising? Why have I committed a blog post to the subject?
Because without ethics, the profession – and all the good work of nonprofits – fails.
Development rests on a foundation of trust. These codes of ethics codify ways in which to build that trust between organizations and donors or, conversely, not to erode it.
First and foremost, donors must trust that development professionals have honestly described the organization, its services, financial position, and overall organizational health. Because donors do not receive anything tangible when they invest in your organization – other than feeling good about doing good – they have few ways to objectively verify the information you share. Make sure you share it honestly and completely!
Second, donors must trust that you will use the funds they give in the manner in which you promise. If you tell them their gift will buy computers, buy computers. If you tell them it will pay the light bill, pay the light bill. If your needs change, talk to the donor about changing what their gift will support – or return it. Sounds simple enough, but not every organization abides by this simple caveat.
Because development professionals often lose sight of the funds once the organization receives them, assure that your finance office, executive, and board members also fully understand and adhere to these codes of ethics so they do not inadvertently or intentionally divert funds from their intended use. Maybe think about having a staff or board discussion around ethical development practices during October. Because many questionable ethical situations live in the grey area, the AFP website has some ethical conundrums that you and your colleagues can discuss as a way to spur conversation.
Third, donors must trust that you have their best interest at heart and not your own, making conflict of interest policies and bans on commission-based compensation so important. This differentiates development professionals from the proverbial “used car salesperson” who has a vested interest in seeing you drive off the lot with the lemon that has sat there for months. Their commission grows with each sale. Again, because your organization has no “tires to kick,” donors need to trust that your advice will help them fulfill their personal mission and goals, not your own – or worse yet, line your pockets.
The news has no shortage of stories of nonprofits who have committed unethical practices. These stories hurt the nonprofit involved and hurt the sector as people see nonprofits and their development professionals as “money grubbing” rather than honest professionals who just want to improve their community. Once you lose that trust, it becomes very difficult to revive.
If you live by the mantra that you will always treat your donors and prospective donors with honesty, integrity, respect, transparency, and responsibility, you should never have to try to regain their lost trust. Because without trust, development cannot exist.
Related Nonprofit Tips & Tidbits
November 15 marks National Philanthropy Day. Whether your community has a formal recognition of this day, you can - and should - use this opportunity to celebrate the philanthropists who make your work possible and the staff and donors - that's you - who help them find the joy of giving.