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
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Summary
Fundrainsing & Communications to the Public
S 6.2
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:

    1. the public is informed of the way the Organization intends to use donated resources;

    2. when members of the public are invited to support a specific project or purpose, they are informed if donations may be reassigned and they are given an explanation of these planned alternative uses;  

    3. the public is informed whether those seeking donations are volunteers, employees or hired solicitors of the Organization;

    4. its donors are encouraged to ask questions when making a donation and they are given prompt, truthful and forthright answers;

    5. its donors receive appropriate acknowledgment but are not publicly identified without their consent.

Why
Why

This detailed clause underlines the basic ethical principles of respect, dignity, transparency and accountability. The overall credibility of the CSO community is affected by the behaviour of individuals seeking donations. The five subsections of this clause specify the respect owed to the public in general and to those who become donors in particular. Donors are agents of the work of the Organization and should not be manipulated. 

 

Respect and transparency demand that the Organization keep the public and donors informed about its intentions and about the actual disbursement of funds, but also about the effectiveness of the programs funded. If an Organization appeals to the public for funding relating to special programs, the public has the right to expect that donations will be used for nothing else. Transparency requires the Organization to be clear in the appeals if donations may be reassigned. 

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Indicators of Compliance
Indicators of Compliance
  • The Organization has an accounting system that allows for tracking of designated contributions.
  • The wording of fundraising solicitations is sufficiently clear to identify the intended use of the funds.
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Ethical Questions to ask
Ethical Questions to ask
  • Do we imply that donations will directly benefit a specific individual or family when in fact they will be used for community development?
  • How do we deal with an excess of funds donated for a specific project or program?
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Examples of good ethical practice
Examples of good ethical practice
  • Providing donors with options so that, if the requirements of a given campaign are met, the contributions may be applied, with permission, to another program.
  • Telling donors what percentages of their contributions go to overseas programs, to administrative costs, and to offset fundraising expenses.
  • Informing potential donors up-front if the appeal is being made by a hired solicitation company.
  • Encouraging potential donors to ask questions of the Organization and to seek independent advice before making donations that might significantly affect their financial position.
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Examples of poor practice
Examples of poor practice
  • Giving donors the false impression that their contributions will be used only for the purchase of direct inputs (e.g. medical supplies, wells), even though operating costs related to the delivery of a program are legitimate expenses. 
  • Reassigning donations obtained in response to special appeals, without providing prior notice in the appeal or obtaining donor permission.