CAP Ethics & Professional Standards in Philanthropic Advising 2

Question 1

The Donor Bill of Rights establishes that donors have the right to:

Accepted Answer

Be informed of the organization's mission and how funds are used, and have their gift used as intended

Answer

The Donor Bill of Rights affirms donors' rights to information about the organization's mission, financial practices, and how their gifts are used—core transparency and stewardship obligations for all charitable organizations.

Question 2

A CAP advisor discovers that a nonprofit recommended to a client is engaged in significant financial mismanagement. The advisor's ethical obligation is to:

Accepted Answer

Promptly disclose the information to the client and help them assess whether to continue their charitable relationship with the organization

Answer

The advisor's primary obligation is to their client—disclosing relevant information that could affect the client's philanthropic decisions is a core duty of loyalty and candor.

Question 3

Impact washing in the philanthropic context describes:

Accepted Answer

Making exaggerated or unsubstantiated claims about philanthropic impact to attract donors without evidence

Answer

Impact washing describes organizations that make inflated or unsupported claims about their impact to attract donors—analogous to greenwashing in sustainability—without rigorous evidence to back the claims.

Question 4

Under the American College's ethical guidelines, objectivity in philanthropic advising requires:

Accepted Answer

Providing advice based on an impartial analysis of facts, free from personal bias and undisclosed self-interest

Answer

Objectivity requires that advice be based on impartial analysis of the client's situation and relevant facts, free from the advisor's personal biases, undisclosed financial interests, or emotional preferences.

Question 5

The ethical duty of competence for a CAP designee differs from diligence primarily in that competence refers to:

Accepted Answer

Possessing the knowledge, skill, and judgment necessary to perform professional services

Answer

Competence refers to having the necessary knowledge, skills, and judgment to deliver professional services; diligence refers to the careful, thorough application of those capabilities in a timely manner.

(CAP) Certified Philanthropic Advisor Practice Test

(CAP) Certified Philanthropic Advisor Practice Test

CAP Ethics & Professional Standards in Philanthropic Advising 2