Is it Ethical? by Norman Olshansky, President & CEO, Van Wezel Foundation

One of the most important aspects of being a member of AFP is our commitment to the Code of Ethics of our profession. The code has been one of the most significant elements that establishes fundraising as a respected profession. It has set us apart from hucksters who are unprofessional and unethical…….those who are willing to do anything with or for donors in order to raise funds for their “charitable” endeavors.


Unfortunately, the code only applies to members of AFP. However, by upholding our ethical code, being positive role models and educating the public, we raise the overall level of professional and ethical fundraising in the communities we serve. We have an obligation to not only instill ethical behavior within the organizations we serve but also among donors and others involved in the nonprofit sector.

As many of my colleagues are aware, for many years I was involved as a consultant with clients around the Country and was unable to be very involved locally with AFP, even though I formerly served on the Board of our chapter. Since joining the staff of the Van Wezel Foundation, a fundraising ethical issue came up which may be of interest to you, my colleagues.

Evidently, there is a history where local commercial magazines sponsor events with nonprofits with the proviso that no other magazine be allowed as sponsors. In other words, they ask for and receive an exclusive relationship. The Van Wezel Foundation, in the past, has also accepted such arrangements. When I came on board, I felt that exclusive relationships posed an ethical issue and have stopped the practice.

Are such “agreements” a violation of our code of ethics?

I feel that if we allow exclusivity with a commercial enterprise we end up telling other donors from a similar industry that we can’t accept their comparable donation or sponsorships. My position is that donors who care about our mission should be welcome and recognized appropriately. It would be like a lawyer or doctor telling a nonprofit that they want an exclusive relationship with the organization, thus preventing the organization from accepting and recognizing other gifts from those professions.

The very first two sections of our code state:

1. Members shall not engage in activities that harm the members’organizations, clients or profession.
2. Members shall not engage in activities that conflict with their fiduciary,ethical and legal obligations to their organizations, clients or profession.

One might take the position that the code only applies to individual members and not nonprofit organizations. While an organization may not be subject to the code, AFP members in that organization can indeed be held accountable for actions in that organization.

Is it a violation of the Code for a member to go along with an unethical activity, policy or behavior which is the decision of and implemented by others?

If we do not stand up for ethical behavior in the nonprofit sector, who will? If we observe or learn about unethical behavior shouldn’t we try to educate and work towards the elimination of that behavior?

It is with the above in mind that I want to stimulate a discussion about exclusivity practices requested by donors. It’s hard for an individual member to change a long time practice in a community but if we agree, as a group of professional colleagues, that such practices are inappropriate, even if not technically unethical, we can indeed influence change.

What do you think? Would your organization accept such a requirement from a donor? If so, under what conditions? If not……….why?

Are there other issues involved with this example that have not been addressed above? What if it were your largest donor who set such a condition on their gift?

In our case, following a serious discussion and educational session with the magazine, they backed down and we now have several magazine media sponsors of our gala.

I would suggest that we as professionals need to avoid even the slightest perception of ethical impropriety and by challenging these practices, we help to educate the donor community how we are different from the profit making world where these practices are common and within ethical business practice. I don’t blame the companies for asking for preferential treatment but that doesn’t mean we have to accept the practice.

What do you think?
 
 
Norman Olshansky is the president and CEO of the Van Wezel Foundation.