1. Ethical Fundraising
What to expect of yourself
and others
NHH Foundation
Ken_Wyman@Yahoo.ca
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2. Why Ken Wyman CFRE?
• Professor / Coordinator (on research sabbatical)
Fundraising Management graduate program
Humber College, Toronto
www. humber.ca/fundraising
• Author: Eight books on fundraising
– Classics: Free downloads
http://tinyurl.com/BooksByWyman
– Most recent: Excellence in Fundraising in Canada.
http://tinyurl.com/ExcellenceInFundraising
• Fundraiser / trainer / consultant 35+ years of success
• Former journalist
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3. Beyond the Spirit of the Law
• I am not a lawyer, and proper legal counsel
should be consulted as necessary.
• I am not ordained, and you may wish to seek
spiritual counsel from your religious leaders.
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4. Topics tonight:
• Cases in the news
• Codes of Ethics from AFP, AHP, Imagine and others
• Your key concerns
• Advanced ethical action
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5. 3 levels of concerns
•Ethics – Doing what’s right
•Laws – Doing what’s required
•Optics or PR – Doing what looks good
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6. Transparency
- always act
as if everyone
could see you.
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7. Statement of
Ethical Principles
• The AFP code is written for fundraising staff who are AFP members.
Although the wording does not exactly fit board members,
the core principles do apply.
• The Imagine Canada code is designed for the charity itself.
See http://www.afpnet.org/Ethics/
Based on AFP Code of Ethical Principles - long version with guidelines
25
principles
http://www.afpnet.org/files/ContentDocuments/CodeOfEthicsLong.pdf
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8. Primum non nocere
1. Members (of AFP)
shall not engage
in activities that harm
• the member's organization,
• clients, or
• profession.
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9. Tainted Donors
• Queen's University returned David Radler’s $1-million gift
and deleted his name from the business school
• The Hospital for Sick Children in Toronto continues
to honour Conrad Black and his family for their donation.
• Mother Teresa apparently accepted donations
from anyone, no matter how unsavoury the donor.
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10. Standards Program
• Recognition mechanisms created due to a gift
shall not be arbitrarily changed or withdrawn….
• If the mechanism cannot be physically retained,
it will be changed to another
consistent with the original agreement.
• If continuation of the recognition creates
a reputational risk for the charity,
it may be terminated or altered.
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11. Ethical Principles
1. Screen donors before accepting gifts.
2. Sign formal agreements with large donors
that specify what happens in the event that
one is embroiled in a scandal.
3. Turn problems into opportunities
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12. You saw who do what?
• Public and private behaviour
of board, staff and volunteers
• Smoking
• Alcohol (particularly when meeting donors)
• Personal conduct that could be embarrassing or illegal
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13. • …the role of Director may include
representing the hospital in the community….
• such representations must be respectful of and consistent
with the Director’s duty of confidentiality….
• the Chair is the only official spokesperson for the board.
• Every director and committee member shall ensure that
no statement not authorized by the board is made
by him or her to the press or public.
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14. Interaction with the Media:
• The Executive Director and the Chair,
rather than members of the Board, have the responsibility
to speak publicly on behalf of the NHHF.
• From time to time, Directors may be requested by
politicians, the media, or stakeholders, to discuss issues
related to the business of the NHHF, including matters
discussed at meetings of the Board of the NHHF.
Any Director to whom such a request is made should refer
the request to the Executive Director for direction.
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15. 06/03/2013 NHH Foundation Ethics 15 of 99

16. Inside Edge
• Board or staff winning raffles or 50/50 draws
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17. Avoid Conflict of Interest
2. Members shall not Examples:
• You or yours would benefit.
engage in activities • Your company gets a contract
that conflict with • You refer a donor for legal or accounting
advice to a friend, family member,
their fiduciary, ethical, or get a kickback.
and legal obligations • You own nearby properties.
to their organizations
and their clients.
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18. Oshawa hospital charity fires boss,
calls in the cops
Toronto Star, Oct 27 2011
•One of Ontario's big hospital charities has fired
its chief executive officer and called in the police
after forensic accountants turned up
serious money and charity management problems.
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19. Ethical Principle
• Do not hire your own firm, relatives or friends to do
work for the hospital or the foundation,
particularly without public bidding
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20. Disclose Conflicts of Interest
3.Efffectively disclose Examples:
all potential and actual • I can get T-shirts cheap
conflicts of interest; because my friend owns
such disclosure the company
does not preclude or imply • I invest in pharmaceutical
company stocks
ethical impropriety.
• I am active in politics
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21. Do not exploit anyone
4.Shall not exploit any relationship with a
donor, prospect, volunteer or employee to
the benefit of the member or the
member's organization.
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22. Politicians must be careful
about who they ask while in office
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23. Standards Program
• The charity shall not exploit its beneficiaries.
It shall be sensitive in describing those it serves
(whether using graphics, images or text) and
fairly represent their needs and how these needs
will be addressed.
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24. Keep it legal
5.Comply with all applicable local, state,
provincial, federal, civil and criminal laws.
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25. Don’t say you know if you don’t
6. Recognize their individual
boundaries of competence
and are forthcoming and truthful about their
professional experience and qualifications,
and will represent their achievements
accurately and without exaggeration.
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26. Be honest
7. Present and supply products and/or services
honestly and without misrepresentation and
clearly identify the details of those products, such as
availability of the products and/or services
and other factors that may affect the suitability of the
products and/or services for donors, clients or
nonprofit organizations.
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27. Get it all in writing
8. Establish the nature and purpose of any contractual
relationship at the outset
and will be responsive and available to organizations
and their employing organizations before, during and after
any sale of materials and/or services.
Members will comply with all fair and reasonable
obligations created by the contract.
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28. Information is protected
9. Refrain from knowingly
infringing the intellectual property rights
of other parties at all times.
Members shall address and rectify
any inadvertent infringement that may occur.
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29. Keep it private
10. Protect the confidentiality
of all privileged information relating to the
provider/client relationships.
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30. Respect others
11. Refrain from
any activity
designed to
disparage competitors
untruthfully.
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31. Be clear about how gifts are used
12. Take care to ensure that all solicitation
materials are accurate and correctly reflect
the organization's mission and use of
solicited funds.
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32. Be clear about tax implications
13. Take care to ensure that donors receive
informed, accurate and ethical advice
about the value and
tax implications of contributions.
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33. Standards Program
• The charity shall encourage donors to seek
independent advice if the proposed gift
is a Planned Gift and/or the charity has
any reason to believe that the proposed gift
might significantly affect the donor’s financial
position, taxable income,
or relationship with other family members.
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34. Use gifts the way the donor says
14. Take care to ensure that contributions are
used in accordance with donors' intentions.
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35. New Carleton U donor deal
gets thumbs down
Macleans.ca August 30 2012
•…Controversial $15-million… secret donor agreement revealed
that a five-member steering committee — headed by [Preston]
Manning along with two [Clay] Riddell appointees and two
university representatives — had approval powers over
academic hiring, curriculum, the program budget,
and the awarding of scholarships.
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36. School Mistakenly Shared
Private Admissions Data
February 7, 2013
•…one of the top Manhattan private schools, the Dalton School,
might have been a little too open with the data… it had given out to
some alumni who had volunteered to raise money for Dalton
information about several other alumni whose own children had
applied to the school. The information included whether those
children had been admitted, information that most parents prefer not
to be shared, especially in cases where the answer is no.
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37. Standards Program
• The charity shall have appropriate fundraising
policies in place, including but not limited to
gift acceptance, treatment of restricted or
designated gifts, naming, and endowment
policies. The relevance and appropriateness
of the charity’s fundraising policies shall be
reviewed regularly by the governing board.
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38. Ethical Principle
• Some donors want to control
how you spend their money
in ways that do not fit your mission
or could cause problems.
• Negotiate and sign clear gift agreements
• Consult on acceptable practice.
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39. Manage gifts well, and report
15. Ensure proper stewardship of
charitable contributions,
including timely reports on the use and
management of funds.
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40. Don’t change terms of gifts
without permission
16.Obtain explicit consent by the donor
before altering the condition of a gift.
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41. Keep it confidential
17. Shall not disclose privileged or confidential
information to unauthorized parties.
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42. Standards Program
The charity shall honour donors’ requests
to remain anonymous in respect to:
•being publicly identified as a supporter
of the organization; and/or
•having the amount of their contribution publicly disclosed. .
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43. Standards Program
• The privacy of donors shall be respected.
Any donor records that are maintained by the charity
shall be kept confidential to the greatest extent possible.
• Donors shall have the right to see their own donor
record, and to challenge its accuracy.
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44. Donor info stays with the charity
18. Adhere to the principle that all donor and
prospect information created by, or
on behalf of, an organization is
the property of that organization and shall
not be transferred or utilized except on behalf
of that organization.
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45. List exchanges OK,
but give Opt-Out
19. Give donors the opportunity to have
their names removed from lists that are
sold to, rented to, or exchanged with other
organizations.
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46. Be Accountable with Accountants
20. When stating fund-raising results, use
accurate and consistent accounting methods
that conform to the appropriate guidelines adopted by the
American Institute of Certified Public Accountants (AICPA)*
for the type of organization involved.
(*In countries outside of the United States, comparable authority should be utilized.)
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47. Standards Program
• The charity shall provide, upon request,
its best available information on
the gross revenue, net proceeds and costs
of any fundraising activity
(including the fundraising costs categorized as
education and/or public awareness) it undertakes.
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48. No Commissions
21. Shall not accept compensation or enter into a contract
that is based on a percentage of contributions;
nor… accept finder’s fees or contingent fees….
Refrain from receiving compensation from third parties…
without disclosing that third-party compensation…
(for example, volume rebates from vendors…).
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49. Bonuses OK, but not percentages
22. Members may accept
performance-based compensation,
such as bonuses, provided such bonuses are
in accord with prevailing practices
within the members' own organization;
and are not based on a percentage of
charitable contributions.
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50. No compensation from vendors
23. Neither offer nor accept
payments or special considerations
for the purpose of
influencing the selection of products
or services.
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51. Don’t pay on commission
24. Not pay finder's fees, commissions or
percentage compensation
based on charitable contributions
and shall… discourage their organization
from making such payments.
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52. Ethical Principle
• Salaries and benefits are public
• Donors may react negatively to perceived high pay
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53. Mt. Sinai’s top doctor quits amid
ORNGE scandal
Toronto Star, Feb 28 2013
•Dr. Tom Stewart resigns as hospital announces it will
now disclose publicly all third-party contracts to
increase transparency following probe into contract
with ORNGE founder Chris Mazza.
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54. Chris Mazza of ORNGE
got $4.6 million in two years
Toronto Star, Feb 9 2013
•Salary, bonuses and housing loans add up to
much higher figure than previously thought.
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55. Six-figure salaries the norm
at top charities
The Globe and Mail Apr. 14 2010
•Some of Canada's largest and best-known
charities are paying top officials more than
$300,000 annually, government filings show
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56. Ontario hospital CEO contracts show
car, golf perks
CBC News, Jan 3, 2012
•Executives offered deals including
Jenny Craig plan, plastic surgery
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57. It’s all public information
http://www.fin.gov.on.ca/en/publications/salarydisclosure/2011/hospit11.html
BIRON ROBERT President, Chief Executive Officer $229,316.38 $5,852.26
BRENNER HELEN Vice President, Patient Services/ $153,266.24 $713.52
Chief Nursing Executive
BURN JANET Program Director $110,438.28 $514.44
BURR ELAINE Program Director $105,954.12 $466.38
CALVERT CARALEA Registered Nurse $101,812.27 $375.72
CHESTER TRACEY Registered Nurse, Team Leader $103,009.44 $403.29
CLARKE JULIE Director, Professional Practice $105,001.67 $488.88
FLAY CATHERINE Registered Nurse $100,417.33 $382.41
GARRATT PAMELA Manager, Pharmacy $104,071.30 $471.48
LYTTLE LISA Registered Nurse $101,292.60 $375.72
TURK CHERYL VP, Finance & Information Systems/ $133,536.00 $621.60
Chief Financial Officer/Chief Privacy Officer
VOSBURGH ELIZABETH Vice President, Human Resources and Quality $122,684.31 $571.56
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58. Expense claims
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59. Ethical Principle
• Do not claim any expenses that cannot be clearly
seen as in the interest of the hospital’s patients.
• Document all claims.
• Be prepared to show all expenses publicly.
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60. Cui bono? (Follow the money)
• Should Board receive compensation?
• What expenses can board, volunteers or staff claim?
– Meals
– Alcohol
– Travel
– Other
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61. Butting ahead in the line
• Special treatment for donors, board, volunteers or staff
when they are sick, or competing for scarce resources
such as flu vaccines, or bed space, or fast-track surgery
• Back dating donation receipts
• Other favours
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62. Spend donations properly;
Disclose earnings on gifts
25. Any member receiving funds
on behalf of a donor or client must
meet the legal requirements for
the disbursement of those funds.
Any interest or income earned
on the funds should be fully disclosed.
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63. Standards Program
• The charity’s governing board shall be informed
at least annually
of the number, type and disposition of complaints
received from donors or prospective donors
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64. Board sharing names of
potential donors
• Share names of prospective donors and
potential leads with the Executive Director
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65. Board asking for donations
• Participate in cultivation, solicitation, and stewardship
of potential lead donors when called upon to do so;
• Promote the Foundation among business networks, colleagues,
friends and associates, and;
• Board Directors will not solicit donations directly unless
instructed otherwise by the Executive Director
or they are part of a fund raising team overseen by
the Executive Director and/or his/her appointee for that purpose.
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66. Board expected to give
financial support
• Attend Foundation events, 3rd party events,
donor receptions, launches, and cheque presentations;
• Give thoughtful consideration to personal investment in
the Foundation by personally or professionally making
an annual financial contribution to the best of one’s ability
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67. Other concerns and discussions
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68. Advanced Proactive Ethics
• Beyond basic hygiene and good manners
• Proactively prevent problems
• Advocacy voice for social justice.
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69. Speaks out on
•Asbestos
•Tanning
•Tobacco
•Cosmetic pesticides
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70. Health groups pushed against casino
The Hamilton Spectator, Feb 13 2013
•Hamilton health groups, like St. Joseph's Healthcare,
pushed against having a casino….
Local hospitals and community health groups
penned letters to city council
during the height of the casino debate
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71. What local issues affect health?
Should you speak out to lower the need for hospitals and charities?
• Food / nutrition
• Elder Care and Home Care
• Housing
• Mental health
• Teen pregnancy
• Abuse and violence
• Local economy
• Accessibility and (dis)Abilities
• Unemployment
• First Nations
• Low wages
• Drug and substance abuse
• Environment
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72. Government funding
• Ontario has the lowest hospital funding in Canada
(spending per person 2012)
• Many smaller community hospitals cut or closed
– Ontario Health Coalition
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73. Shared Issues
• Hospital funding should not come at the expense of
funding prevention and community care
• Form alliances with others on shared issues,
including business, non-profits, police, unions, etc.
• Better policies could lower costs
• Combine advocacy and direct action for change
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74. Build your own Codes of Ethics
click on the links below
• Association of Fundraising Professionals • Office of the Ethics
– The Donors’ Bill of Rights Commissioner
– The E-Donors’ Bill of Rights • The Charleston Principles
• Association for Healthcare Philanthropy • Canadian Council
• United Way Canada of Christian Charities
• Imagine Canada • International Association of
• Canadian Association of Gift Planners Business Communicators
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75. Preparing your own Code of Ethics
ACTION to prepare
• Collect examples
• Brainstorm ethical issues that could arise
• For each issue what do you think is the ethical answer?
• Include as many people as possible in consultations
• Arrange annual training on your Code
• Include penalties for those who fail to comply
• Encourage whistleblowers to alert you to problems
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76. Ken Wyman
Training & Consulting Humber interns/courses
  416 362-2926 416 675-6622 x 3013
  Ken_Wyman@yahoo.ca  FundraisingProgram@Humber.ca
• @KenWyman • @FundraiseHumber
 www. humber.ca/fundraising
Download these slides at
http://tinyurl.com/Ethics-Coburg-Wyman
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77. Please do not steal this material.
• Intellectual Property: Ken Wyman worked hard to research and create this
information, and present it to you in clear terms. Teaching, writing and
consulting are the source of my livelihood.
• If you want to make copies, put parts in your newsletter or on the
Internet, translate it, or reproduce it in any way please ask my
permission first. Violation of this copyright will result in a starving author,
who will have less time to research good stuff for the non-profit sector.
• Limited licence: NHH Foundation, Campbellford Hospital, United Way,
YMCA and others attending may share this with their local staff and
volunteers for internal use only.
• Legal stuff: This document is copyright Ken Wyman 2013, Toronto. It remains the property of
Ken Wyman, who reserves all rights. No one may copy or distribute these materials in any
form, except as specified above, without the express written permission of Ken Wyman.
• Expertise: This publication is designed to provide accurate and authoritative information.
Please use it with the understanding that the author is not engaged in rendering legal or
accounting advice. All publications provide generic information that is a not a substitute for
professional counsel.
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78. The Donor Bill of Rights
The Donor Bill of Rights was created by
• the American Association of Fund Raising Counsel (AAFRC),
• Association for Healthcare Philanthropy (AHP),
• the Association of Fundraising Professionals (AFP), and
• the Council for Advancement and Support of Education (CASE)
It has been endorsed by may organizations.
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79. The Donor Bill of Rights
• Philanthropy is based on voluntary action for the common good.
It is a tradition of giving and sharing that is primary to
the quality of life.
• To ensure that philanthropy merits the respect and trust
of the general public, and that donors and prospective donors can
have full confidence in the nonprofit organizations and causes
they are asked to support, we declare that
all donors have these rights:
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80. The Donor Bill of Rights
I. To be informed of the organization’s mission,
of the way the organization intends to use
donated resources, and of its capacity to use
donations effectively for their intended purposes.
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81. The Donor Bill of Rights
II. To be informed of the identity of those serving
on the organization’s governing board,
and to expect the board
to exercise prudent judgment
in its stewardship responsibilities.
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82. The Donor Bill of Rights
III. To have access to the organization’s
most recent financial statements.
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83. The Donor Bill of Rights
IV. To be assured their gifts will be
used for the purposes for which
they were given.
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84. The Donor Bill of Rights
V. To receive appropriate acknowledgement
and recognition.
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85. The Donor Bill of Rights
VI. To be assured that information
about their donation is handled with respect and
with confidentiality
to the extent provided by law.
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86. The Donor Bill of Rights
VII. To expect that all relationships with
individuals representing organizations
of interest to the donor will be
professional in nature.
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87. The Donor Bill of Rights
VIII. To be informed whether
those seeking donations are
– volunteers,
– employees of the organization
– or hired solicitors.
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88. The Donor Bill of Rights
IX. To have the opportunity for
their names to be deleted
from mailing lists that an organization
may intend to share.
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89. The Donor Bill of Rights
X. To feel free to ask questions
when making a donation and to receive
prompt, truthful and forthright answers.
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90. The E-Donor Bill of Rights
• The E-Donor Bill of Rights is intended to complement
the original document and provide further and
more detailed guidance for the new world of online giving.
In addition to the rights outlined in the Donor Bill of Rights,
online donors should demand the following
of their online solicitors:
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91. The E-Donor Bill of Rights
• To be clearly and immediately informed of
the organization's name, identity,
nonprofit or for-profit status,
its mission, and purpose
when first accessing the organization‘s website.
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92. The E-Donor Bill of Rights
• To have easy and clear access to
alternative contact information
other than through the website or email.
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93. The E-Donor Bill of Rights
• To be assured that all third-party logos,
trademarks, trustmarks and other identifying,
sponsoring, and/or endorsing symbols
displayed on the website are accurate, justified,
up-to-date, and clearly explained.
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94. The E-Donor Bill of Rights
• To be informed of whether or not a contribution
entitles the donor to a tax deduction,
and of all limits on such deduction
based on applicable laws.
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95. The E-Donor Bill of Rights
• To be assured that all online transactions and
contributions occur through
a safe, private, and secure system
that protects the donor's personal information.
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96. The E-Donor Bill of Rights
• To be clearly informed if a contribution goes
directly to the intended charity,
or is held by or transferred through
a third party.
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97. The E-Donor Bill of Rights
• To have easy and clear access to
an organization's privacy policy
posted on its website and
be clearly and unambiguously informed about
what information an organization
is gathering about the donor
and how that information will be used.
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98. The E-Donor Bill of Rights
• To be clearly informed of opportunities to
opt out of data lists
that are sold, shared, rented, or transferred
to other organizations.
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99. The E-Donor Bill of Rights
• To not receive unsolicited communications or
solicitations unless the donor has "opted in"
to receive such materials.
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