ࡱ> JLIM *bjbj== 2>WWY&jl<<<<<<<P84P2. (V (~ ~ ~ ~ ~ ~ CEEEEEE$  |i<~ ~ ~ ~ ~ i <<~ ~ ~ ~ <~ <~ C ~ C +h<<C~ " r#PR$ C0 C PP<<<<Ethics: How Do I Handle This Situation? Presented by: Jim Allen, ACFRE For the: AFP Congress 2006-The Fundraising Marathon Date: November 14, 2006. As Fundraisers we are often faced with tough questions in the process of accepting gifts on behalf of our organizations Many of these questions revolve around legal or ethical issues. Some involve both. Fundraisers have a tremendous responsibility, for we are entrusted with advancing philanthropy for the common good. Ethics is the foundation for fundraising. It makes services we provide and the innumerable people we help every day-possible. The riches of human life and experience are what our profession is all about. (Paulette V. Maehara, CFRE) My presentation today will first address some over riding ethical issues and then we will break into small groups to work on a few cases. Background CAGP and AFP both have strong codes of ethical principles and practices CAGP has an 11 point Code of Ethics that can be found on the CAGP website.  HYPERLINK "http://www.cagp-acpdp.org" www.cagp-acpdp.org Point 11 states that the CAGP Ombudsman will be responsible for investigating complaints against members AFP has a code of Ethical Principles and Standards of Professional Practice. These can be found on the AFP website.  HYPERLINK "http://www.afpnet.org" www.afpnet.org AFP has an Ethics Committee which reviews complaints brought against members. The AFP Greater Toronto Chapter looks at ethical questions on an ongoing basis through its Ethics and Professional Advancement Committee. If you have an ethical question you would like reviewed you can contact the Chapter Administrator, Cynthia Quigley and she will help direct your question to the proper person or committee either locally or at AFP International. I am very familiar with the AFP process as I brought a complaint against a member in 1994 and the member was stripped of his CFRE certification for life and was expelled as a member of AFP. At that time AFP (NSFRE) administered the CFRE program Today the penalty can be as harsh as expulsion for life from AFP . Issues The first issue I want to present is the Three Stages of Concern 1. Illegal 2. Unethical 3. Ethical Dilemma I have an example of an ethical dilemma that was faced by one of our colleagues in the Toronto AFP Chapter. She had been speaking with an avid fan of her organization, who has a number of wealthy friends. They don't really know much about the organization, but are very keen on public recognition. The donor believes that he could convince them to give a lot of money in exchange for the organization nominating them for things like the Order of Canada, special medallions etc. The donor would be willing to do the paperwork for the organization. Our colleague's instinct is that you don't nominate someone for this sort of thing unless they are longtime donors who have made a significant difference to the organization. The donor seems to think that this is perfectly appropriate, just another form of donor recognition for a major gift, and if the organization professes to need the money, it would be foolish to turn it down. The issue was sent off to the AFP Ethics Committee and they wrote: "While we understand your dilemma, the AFP Code of Ethics does not address this type of activity. The decision to seek recognition for a donor is an institutional decision and it would be helpful if your organization had some donor recognition guidelines. Having guidelines in place on how and when donors will be recognized could help you to address your present situation" Another Dilemma: You are a proposal writer who works by contract. You are asked to: Be paid a percentage of what you raise- This is clearly unethical Be paid a fee for each proposal that is funded, no matter what the amount of funding--- This is ethical Be paid a fee for each proposal you write--- This is ethical A Final Dilemma While working at a college in Ohio we had a donor who gave us a 10 year old Rolls Royce for the college to auction off with the funds received to be used for scholarships. The donor received a tax receipt for his donation The donor agreed to sell 10 tickets at $100 each. He asked the President of the College if he could buy one ticket and the President agreed. In the end he bought 2 tickets one for himself and one for his wife.. I had all the tickets in my possession prior to the raffle draw and I supervised the draw. A student selected at random drew the winning ticket and it was the one with the donors wifes name on it. The donor kept the car and the tax receipt and there was nothing I could do about it. This is the reason that when organizations run raffles they prohibit employees or their families or anyone else related to the organization from purchasing tickets. Now lets look at Ten Major Ethical Values as put forward by the Josephson Institute of Ethics Jeremy Bentham and John Stuart Mill taught that ethics equals the greatest good of the greatest number of people Aristotle on the other hand taught that the ultimate goal of ethics is happiness and that happiness comes primarily from the full exercise of one's faculties along lines of excellence. This was a phrase that John F. Kennedy loved to quote Aristotle also taught "Moral excellence is the result of habit" If ethical; behavior is to be our fundraising guide it must become part of our behavior We can't just practice it when it suits us. There are several questions that we should ask ourselves when we are faced with an ethical dilemma. From a personal perspective I would like to tell you a little bit about ethics and the ACFRE process At this point it may be useful to look at how Americans view charities from a point of ethics and honesty. How does your sector rate? Cases Before we go to break-out groups for case discussion I would like to present some actual cases for general consideration. These should help you to focus in your break-out groups In 2005 Queen's University announced its plans to return David Radler's $1 million donation as a result of his pleading guilty to one count of fraud in a Chicago court. Could they give the money back? What about the tax receipts he had received Was removing his name from the wing of Goodes Hall enough? Close Range---A short story about two cowboys who fall in love was included in the 12th grade reading list at St. Andrew's Episcopal School in Austin Texas. One of St. Andrew's major donors demanded that the book be removed from the list and he threatened to cancel his current $3 million pledge to the school. The school refused to back down and the pledge was cancelled by the donor A $25 million dollar donor to Case Western Reserve University in Cleveland, Ohio tried to have the Board of Case Western removed for incompetence. When the Board would not step aside he withdrew his support to Case Western and to all other charities that he had been supporting in the Greater Cleveland Area. In New Orleans a private Catholic school found itself in dire financial straits and about to go under. A former foreign Dictator came forward to offer a substantial donation to keep the school open. The Catholic Church agreed to accept the gift based on the principle of the greater good. The greater good being the ability to keep the school open. The question that we must ask, is taking a donation from a dubious source a bad thing? Several years ago Diana Hoyt, CFRE was confronted with an ethical dilemma that resulted in her leaving the charitable organization where she worked in Phoenix Arizona. She was asked by the CEO and the CFO to report a gift as if it had come in the previous year. She knew it was wrong and she just couldn't do it. To make the situation worse these two individuals came into her office screaming and yelling at her and calling her names. She explained that it was unethical to report a gift in the wrong fiscal year. A lot of people probably would have said, just walk away from this, don't worry about it, and just change the gift. Diane remained adamant that if you account for it incorrectly, and you account for it in anyway other than the proper manner, it is wrong. She said she was sorry that this had occurred but it was unethical. A short time later, Diana left the organization and started her own fund development software company. At the College in Ohio that I mentioned previously the President became quite enamored with a man he had met socially, who volunteered to help the College with its fundraising. This gentleman was involved in many deals that proved detrimental to the College. In one case he presented art to the College on behalf of a donor. The College accepted the art and provided a tax receipt. Several months later a donor was meeting with the President in his office and pointed out to the President that the art on his wall had been stolen from the donor. Shortly after this the Volunteer was arrested and brought before a Grand Jury. I was brought forward as one of several witnesses and the Volunteer ended up receiving a two year prison term. Before closing my remarks I have a personal dubious recognition story that I would like to share with you from my early days in fundraising at Western New England College in Springfield Massachusetts. With this short presentation as background I would now like you to work in groups. I have given you several cases and we will only be able to go through some of them. I would like you to discuss a case among yourselves for about five minutes and then I would like a representative of each group to present the group's recommendations. In some cases we may find that there are several suggested solutions which will just point up how difficult it is sometimes to find the one right solution.     Page  PAGE 1 of  NUMPAGES 6 Ethics: How Do I Handle This Situation? 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