S1 - Preamble
S2 - Partnerships
S3 - Governance
S4 - Organizational Integrity
S5 - Finances
S6 - Fundrainsing & Communications to the Public
S7 - Management Practices & Human Ressources
S8 - Acheiving Compliance
Questions?
Can not find the answers to your questions? Contact us by email!
I have a question
PDF
Imprimer
Small
Medium
Large
Français
Summary
Finances
S 5.2
Raison d'être
Indicators of Compliance
Ethical Questions to ask
Examples of good ethical practice
Examples of poor practice
  1. The Organization shall ensure that there are sufficient resources for effective administration and appropriate fundraising.

Why
Why

The ethical principles underlying this standard are transparency, fairnessand sustainability. Donors are often unaware of the costs associated with delivering an effective program, running an equitable office that promotes sustainable practices, or raising funds. Donors may expect their donations to be used entirely in overseas programs, or believe that administration costs should be kept to a bare minimum. Organizations may feel vulnerable to criticism about budget allocations for administration and fundraising, yet they have substantial administrative demands associated with treating staff and volunteers fairly, conducting effective program evaluations and reporting results. 

 

This standard updates the old expectation of “minimum” resources to “sufficient” resources, in recognition that there are costs associated with ethical practice. The Organization should be transparent about administrative realities and not mislead the public into assuming that there are no or few costs required to administer a well-run CSO. 

Back to top
Indicators of Compliance
Indicators of Compliance
  • Administrative, fundraising and program expenditures are allocated in compliance with generally accepted accounting principles and in accordance with the Organization's purposes and actual activities.
  • Fundraising and administration costs are set at a level necessary to meet needs in these areas, and there is a clear and justified rationale for the amounts dedicated to these functions. 
Back to top
Ethical Questions to ask
Ethical Questions to ask
  • Are there clear definitions and practices that stipulate what expenses are considered “administrative”, “fundraising” or “program”?
Back to top
Examples of good ethical practice
Examples of good ethical practice
  • Analyzing and addressing, on a yearly basis, the resources required for efficient and effective administration and fundraising.
  • Educating donors about the Organization’s need to have adequate staff for administration and fundraising in order to ensure due diligence and organizational viability.
  • Documenting (in brief) the rationale for how expenses are charged when they are divided between fundraising and program costs (e.g. in the case of a public engagement event).
  • Being consistent in defining administrative, fundraising and program costs.
Back to top
Examples of poor practice
Examples of poor practice
  • Using an across-the-board formula for charging expenses to programs when they are related in part to administrative activities.
  • Allotting insufficient funds to administration and/or fundraising (e.g. salaries) relative to what would be required for the proper functioning of the Organization.