DMA Nonprofit Federation Announces New Fundraising Principles
For Immediate Release
Washington, DC O(July 11) — The DMA Nonprofit Federation, through its Ethics Committee and its Advisory Council, has adopted new Fundraising Principles & Best Practices for Accountability in Fundraising. The DMANF asks its members to review the principles to ensure their adherence to the standards set forth in the document and when working with any third parties or agencies that provide fundraising support. The DMANF asks its members to hold themselves and the industry to the highest standards of accountability.
"Donors expect nonprofits to be accountable and transparent. The new principles serve as key reminders to organizations that they hold a public trust," said Senny Boone, DMANF General Counsel. "Legitimate organizations already hold themselves and others accountable when fundraising; they explain their fundraising process to their donors; and they use donated funds wisely. Legitimate nonprofit organizations seek to fulfill their missions using the highest ethical fundraising standards, and these principles are meant to provide the appropriate guidelines."
Fundraising principles ighlighted include:
- Nonprofits must have a well-defined mission statement describing what they do and why. Clear articulation of mission helps donors choose whether or not to support a particular cause or organization.
- Nonprofits must act in a way that furthers their mission. This includes responsible use of resources consistent with their stated mission objectives.
- Messaging to donors must be accurate and transparent. A nonprofit organization must accurately describe how it spends its money, and must do what it promises to do.
- Nonprofits must apply good faith effort to comply with relevant federal and state laws and regulations.
Use of Funds/Cost of Fundraising
Fundraising to the general public is a key function of nonprofits because, in most cases, this is the primary source of unrestricted financial support. Without donors, and without fundraising activities to acquire and retain these donors, nonprofits could not remain active and their mission delivery would no longer be viable. Fundraising is both a short- and long-term investment in the mission of the organization.