Not-for-Profit Ethics презентация

done by someone with managerial authority.

21% of respondents said they suffered from retribution as a result of reporting misconduct at their organization, just below the 22% who said the same in 2011 and much more than the 12% in 2007.

Source: Ethics Resource Center, National Business Ethics Survey, 2/4/2014

they shared the misconduct they observed.

When they do report misdeeds, employees overwhelmingly turn to their direct supervisor (82%), far more than to senior management (52%), ethics officers (15%), hotlines (16%) or external government regulators (9%).




Source: Ethics Resource Center, National Business Ethics Survey, 2/4/2014

misconduct, and just 14% of those who do said they were motivated by the possible money they would receive.














Source: Ethics Resource Center, National Business Ethics Survey, 2/4/2014

government or businesses.
Unethical behavior remains a persistent problem in NFPs and for-profits alike.
Over 25% of Americans report having “a lot” of confidence in charitable organizations compared to 9 percent for government and 7 percent for major corporations.
Do nonprofits deserve that confidence?

of a public trust.
Your stakeholders entrust to you the responsibility of running your organization successfully, sensibly and ethically.
Boards and management must demonstrate that their programs/services are effective at accomplishing their mission and run prudently and honestly.

civil liability:




Most involve gray areas - activities on the fringes of fraud, or that involve conflicts of interest, misallocation of resources, or inadequate accountability and transparency.

standards can cause outrage in the nonprofit sector, particularly when the organization is struggling.
Officers and unpaid board members may feel entitled to take perks because their services would be worth so much more in the private sector.
Staff and volunteers may receive unearned benefits.

Compensation

to board members or their affiliated companies, employees, major donors or other related parties

Conflicts of interest

NFPs (and 40% of those with more than $10 million in annual expenses) reported buying or renting goods, services, or property from a board member or a company affiliated with a board member within the prior two years.
In 75% of NFPs that did not report any such transactions, board members were not required to disclose financial interests in entities doing business with the organization.

Conflicts of interest

rely on insiders to provide donations or goods and services at below-market rates.
Quid pro quo relationships can jeopardize an organization’s reputation for fairness and integrity in its financial dealings.
NFPs need detailed, unambiguous conflict of interest policies, including requirements that employees and board members disclose all financial interest in companies that may engage in transactions with the organization.

Conflicts of interest

the OMB reforms passed in December 2013, recipients of Federal awards must maintain written standards of conduct covering conflicts of interest and governing the performance of its employees engaged in the selection, award, and administration of contracts.

Conflicts of interest

in their public reports.
Nonprofits need to pay particular attention to transparency, including in solicitation materials, grant proposals, and donor agreements.

Publications and solicitation

share with the public information about their agencies. Be transparent. The more information you share with the public, the more you are apt to be considered accountable.
Solicitations should give the donor a full explanation of the use of the potential gift.
Planned gift solicitations should suggest donors seek independent counsel whenever they are considering a planned gift.

Publications and solicitation

whether to accept donations that have any unpalatable associations or conditions.
Gift acceptance policies should also state that gifts that are counter to or beyond the scope of the nonprofit's mission and purpose will be rejected.
Ignore the saying "Never look a gift horse in the mouth"… Look in that horse's mouth.

Financial integrity

their financial portfolio is consistent with their values - investing in ventures that further an organization’s mission, or at least avoiding investments in companies whose activities undermine that mission.

Investment policies

enjoy substantial public subsidies (in the form of tax deductions and exemptions); therefore, this public role also entails significant public responsibilities.
Fiduciary obligations to stakeholders to use resources in a principled way.
Money held in public trust should be well spent, not just well-intentioned.

Accountability and strategic management

rules can clarify expectations, establish consistent standards, and project a responsible public image.
However, the existence of an ethical code does not itself increase the likelihood of ethical conduct. Much depends on how standards are developed, perceived, and integrated into workplace functions

purpose of adopting a formal statement is to provide employees, volunteers, and board members with guidelines for making ethical choices and to ensure that there is accountability for those choices.
All not-for-profits should formalize an appropriate "statement of values" or "code of ethics."
Many organizations post their statement of values/code on their websites.

the Ethics Resource Center

a board member’s ethical obligations to the board and to shield the organization, board and individual board members against possible legal action and reputational harm.
Regulatory efforts are not making the challenge any easier.
Board members generally serve without compensation and dedicate considerable amounts of time.
But those who serve must exercise high ethical standards or face financial, reputational and legal threats to their organizations and, potentially, themselves.

laws, charitable registration regulations, accreditation bodies, and many other sources.
Ethical issues that arise for boards are similar from state to state (ex. conflict of interest).
Some state ethics laws have been tightened to increase ethical expectations and reduce the window for potential self-dealing by board members.

approve a questionable financial transaction, such as excessive benefits to the CEO, for instance, to large fines.
Another common concern has been "do-little" board members who fail to attend meetings, read board materials, and prepare to conduct board business.
Sometimes, the concern is the opposite, with board members overplaying their role and dominating others on the board into agreeing with their viewpoint.

of the executive committee, with the full board being reduced to a rubber stamp.
Board members should not abstain or not show up, if they believe the board is making a mistake.
Dissent could be a defense in any legal proceeding against the board.
Term limits should be strongly considered.

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Practice
tom.brean@us.gt.com
312 602 8711