Tips on Above-Board Fundraising by Tracy Vanderneck

Tracy Vanderneck

In a recent committee meeting, the attending members were attempting to find a catchy name for a presentation on ethical fundraising. Let’s be real, “How to Fundraise in an Ethical Manner” is a snooze. The committee members joked that the title should be, “Tips on above-board fundraising that will keep you out of jail!” See? Much more interesting!

Ok, hyperbole aside, understanding the lines between legal, ethical, and just plan good practice, is important for every fundraiser…really, for any non-profit employee. But the topic is so vast, it is impossible for a fundraiser to know every rule, caveat, and pitfall. Sometimes, it is just as important to know where to go for an answer as it is to have the answer yourself.

I rely on several sources for assistance when I have a question:

1. A book called Ethical Fundraising: A Guide for Nonprofit Boards and Fundrasiers. This Association of Fundraising Professionals’ (AFP) publication is a compilation of articles from various authors. It was compiled in 2006/2007 and covers such topics as: 1. Conflicts of interest, 2. Compensation for development professionals, 3. Tainted money, 4. Relationships between grantees and funders, 5. Public perception, and more.
2. AFP’s website http://www.afpnet.org/. This web site has downloadable copies of The Donor Bill of Rights, as well as of AFP’s Code of Ethical Principles.
3. Board members with industry expertise. I have found that having a CPA on your board can help you stay ahead of state regulations (for example, rules on sales tax at non-profit auctions if you auction more than three times in a given twelve month period). Having a board member who is willing to research and interpret laws for you is invaluable. This might take working with your CEO and Governance Committee to target future board members in specific industries.
4. Other fundraisers. When you aren’t sure, it is good to put in a call to a development professional or fundraising consultant that is senior in the field. They may have experience with the situation in question, or they may know where to go to find the answer. This may seem like a simple thing, but sometimes just knowing who to ask solves the problem.
5. “Big” non-profits. If you work in a small shop and are the only fundraiser, don’t try to guess or reinvent the wheel. If there is a question about whether a particular practice is acceptable and/or ethical, chances are the larger non-profits (e.g. American Red Cross, American Cancer Society, Susan G. Komen, etc) have come across the same issue. And those organizations have legal departments to find the answer for them. So do some networking and make a friend at a big organization! Ask them if they are willing to mentor you, or just be a sounding board for questions should they arise.

Doing a little reading on the front end, and looking at all of your activities with a critical eye, will help you identify potential problem areas and help make sure you are operating within accepted norms. Over time, your donors will notice that you conduct your fundraising within industry standard ethical guidelines, and that will go a long way in securing donor trust and confidence in you and your organization.

Tracy Vanderneck is the Director of Annual Giving at a Manatee County non-profit and is working towards her CFRE. Tracy is in her fifth year working in the non-profit sector and was most recently the Director of Development at the American Red Cross Manatee County Chapter. The first 11 years of her professional career were in sales of management and interpersonal communication skills training courses and consulting services.