October 22, 2007
Mixed Grades for New Ethical Standards
An effort to create ethical standards for charities is a step in the right direction, but doesn’t go far enough, nonprofit governance experts say.
A committee appointed by Independent Sector, last week released a final report that spelled out 33 principles that charities and foundations can use as benchmarks to evaluate their policies for insuring they comply with the law and are monitoring their finances closely.
The guidelines also focus on how charities should disclose relevant information to the public, govern effectively, and conduct ethical fund-raising efforts.
Trent Stamp, president of Charity Navigator, writes on his blog that he had been reluctant to endorse the new standards because he didn’t believe they were strong enough to promote any real change.
“The worst charities in the land will simply ignore them with no fear of recourse,” writes Mr. Stamp.
Mike Burns, a Connecticut strategic-planning consultant and the author of Nonprofit Board Crisis, writes that the boards of smaller charities are unlikely to even read the document.
“Will boards pore through these 33 principles contained in 25 pages — thus taking governance and ethics to a different level of operational heights? I just can’t imagine it for all,” Mr. Burns writes.
Despite the criticism, though, both Mr. Stamp and Mr. Burns write that they are encouraged by the effort.
“Here’s hoping that good groups adopt the principles and actively acknowledge in their fund-raising materials that they have done so, thereby daring their competitors to join them, or risk being abandoned by cautious and informed donors,” Mr. Stamp writes.
What do you think? Will charity leaders follow these new ethical standards? Or will some nonprofit groups — especially those that try to skirt the law — simply ignore them? Click on the comments link below this post to share your thoughts.
Commenting is closed for this article.
Previous: What's Worse: Bell Ringers or Presidential Candidates?
Next: Foundation Leaders Need a Sense of History