Ethical Responsibility of the Not-For-Profit Sector
Other examples of fraud in the headlines include:
- "$2 Million Embezzlement by Ex-PBS Official"
- "$317,000 Charity Fraud by Sportscaster"
- "Sisters Charged with Stealing $1.4 Million from Nonprofits"
According to an article in GuideStar, in the nonprofit world, fundraising is as inevitable as death and taxes in the for-profit world. If only a small percentage of fundraisers are unscrupulous, the general public may lose trust in the entire sector. Potential donors can protect themselves by asking a number of questions prior to making donations. It is up to the thousands of honest and ethical fundraising professionals to look out for potential fraud and abuse in our profession. That said, I am very proud to have been a member of the Association of Fundraising Professionals (AFP) for more than 30 years.
On Jan. 21, the AFP board of directors approved a new format for the association's Code of Ethical Principles and Standards, which members are required to sign every year as part of their membership. The ethical principles were originally adopted in 1984 and amended in 2014.
These principles include areas of:
- Public Trust, Transparency and Conflicts of Interest
- Solicitation & Stewardship of Philanthropic Funds
- Treatment of Confidential & Proprietary Information
- Compensation, Bonuses & Finder's Fees
These principles disclose what members shall and shall not do in their fundraising activities. I am proud of this organization and its nearly 30,000 international members who collectively work to abolish fraud and abuse in our profession. When I called a donor the other day, I asked why she made gifts to the Salvation Army for so many years. She proudly said, "I trust your organization and trust that you will use my gift to help others in the wisest way possible." We build this trust honestly one donor at a time. Need I say more?
F. Duke Haddad, EdD, CFRE, is currently associate director of development, director of capital campaigns and director of corporate development for The Salvation Army Indiana Division in Indianapolis, Indiana. In addition, he is also president of Duke Haddad and Associates, LLC, and freelance instructor for Nonprofit Web Advisor.
He has been a contributing author to NonProfit PRO for the past 13 years.
He received his doctorate degree from West Virginia University with an emphasis on education administration, master’s degree from Marshall University with an emphasis in public administration and a bachelor’s degree from West Virginia University in business administration, with an emphasis in marketing/management. He has also done post graduate work at the University of Louisville.