Chapter 18 – Fundraising
18.5 Ethics in the Profession
Fundraisers are held to high ethical standards to maintain trust with donors and uphold the reputation of their organizations. Key ethical considerations include donor confidentiality, transparency, and integrity. Protecting donor confidentiality means keeping personal and financial information secure and using it responsibly. Transparency is equally important; fundraisers must clearly communicate how donations will be used and ensure they are applied according to the donor’s intentions. Integrity, which includes honesty and accountability, is essential for building strong relationships with donors and ensuring that the organization’s actions align with its stated mission and values.
Significant ethical challenges in nonprofit fundraising include allocation of funds, influence of large donors, deceptive fundraising practices, and donor intent conflicts.
- Allocation of Funds – Like the Red Cross case following 9/11, there have been high-profile instances where nonprofits received donations intended for specific causes, but funds were diverted to broader organizational needs. This raises ethical concerns around transparency and honesty, as donors expect their contributions to support specific causes or relief efforts, not general expenses.
- Influence of Large Donors – Large donations can sometimes come with expectations or influence that may not align with the nonprofit’s mission. Fundraisers may face pressure to prioritize the wishes of major donors over the community’s broader needs, potentially compromising the organization’s values or independence. Balancing donor influence with mission integrity is a delicate ethical challenge.
- Deceptive Fundraising Practices – Some organizations, under pressure to meet financial targets, might exaggerate claims about the impact of donations or misrepresent program costs to attract donors. This erodes trust over time, as donors may feel misled when they discover the true allocation of their contributions.
- Donor Intent Conflicts – Conflicts can arise when donors’ intentions no longer align with the nonprofit’s evolving needs or strategies. For instance, a donor may restrict funds for a program that becomes less relevant over time, leaving the organization with funds it cannot ethically repurpose. This tension requires fundraisers to navigate difficult conversations with donors, sometimes asking for flexibility to better serve the community’s current needs.
Addressing these ethical challenges requires ongoing commitment to transparency, communication, and upholding the nonprofit’s mission above all else. By openly navigating these dilemmas, fundraisers can build stronger, more trusting relationships with their supporters and maintain the integrity of their organizations.
