Fundraising Ethics and Accountability Flashcards

The concept of 'restricted vs. unrestricted gifts' is important in ethics because:

Answer: Organizations must honor donor restrictions and use gifts only as intended

Honoring donor restrictions is a fundamental ethical obligation; using a restricted gift for a different purpose violates the donor's intent and the organization's fiduciary duty.

What is the ethical obligation of a fundraiser when a prospective donor appears to be making a gift under undue influence?

Answer: Pause the solicitation and take steps to ensure the donor is acting freely and competently

Fundraisers must ensure donors are acting of their own free will and are competent; proceeding when undue influence is suspected violates the donor's rights and the fundraiser's ethical duty.

Which document must US nonprofit organizations file annually to maintain public accountability?

Answer: IRS Form 990

IRS Form 990 is the annual information return required of most US tax-exempt organizations and is publicly available, providing transparency to donors and the public.

The term 'quid pro quo contribution' refers to a payment where:

Answer: The donor receives something of value in return for their contribution

A quid pro quo contribution is one where the donor receives goods or services in exchange for their gift; organizations must disclose the value of those benefits for tax purposes.

Which ethical principle requires fundraisers to be honest about how funds will be used in a solicitation?

Answer: Truthfulness and honesty

Truthfulness and honesty require that fundraisers accurately represent the organization's programs and how donated funds will be allocated.

A charitable organization's board member is also the owner of a company being considered for a major vendor contract. This is an example of:

Answer: A conflict of interest requiring disclosure and recusal

When a board member has a personal financial interest in an organizational decision, it creates a conflict of interest that requires disclosure and typically recusal from the decision.