1. Philanthropy & Fundraising Philip Boyle, Ph.D. Vice President, Mission & Ethics www.CHE.ORG/ETHICS

2. Etiquette Press * 6 to mute; Press # 6 to unmute Keep your phone on mute unless you are dialoging with the presenter Never place phone on hold If you do not want to be called on please check the red mood button on the lower left of screen

3. Goals for today’s conversation Difference between professional behavior and institutional behavior Questions as a method in organizational ethics Adequacy of codes of ethics?

4. Conduct of fundraisers –Conflicts of interest –Bonuses –Use of donor information Issues of donors –Advertising or gift? –VIP treatment Conduct of the organization

5. Case St. Somewhere capital fundraising campaign $25 million goal. St. Somewhere has provided healthcare services to underserved minority populations, as well as families of the rich, infamous, and politically connected. In gratitude the local Native American community has expressed interest in making a large donation from its casino profits. A banana republic dictator, whose son received life-saving treatment at St. Somewhere, would also be interested in sizeable donation. A mogul, convicted in a prominent savings and loan scandal, and a large pharmaceutical company have both expressed interest in making a donation in exchange for the naming rights of building.. A national politician who is on the public record for supporting family planning want s to support The regional beer distributor has also expressed interest in underwriting one of the planned charity fundraising galas. St. Somewhere has not had any articulated practice or formal policy about fundraising gift acceptance. What would you advise? Why?

6. How to evaluate? Against what should problems in fundraising be measured? –Mission & values –Professional codes –Consistency within organization –Nature of gifts

7. Professional obligations 1. Members shall not engage in activities that harm the member's organization, clients, or profession. 2. Members shall not engage in activities that conflict with their fiduciary, ethical and legal obligations to their organizations and their clients. 3. Members shall effectively disclose all potential and actual conflicts of interest; such disclosure does not preclude or imply ethical impropriety. 4. Members shall not exploit any relationship with a donor, prospect, volunteer or employee for the benefit of the member or the member's organization. 5. Members shall comply with all applicable local, state, provincial, federal, civil and criminal laws. 6. Members recognize their individual boundaries of competence and are forthcoming and truthful about their professional experience and qualifications.

8. Professional obligations Solicitation and Use of Philanthropic Funds 7. Members shall take care to ensure that all solicitation materials are accurate and correctly reflect the organization's mission and use of solicited funds. 8. Members shall take care to ensure that donors receive informed, accurate and ethical advice about the value and tax implications of contributions. 9. Members shall take care to ensure that contributions are used in accordance with donors' intentions. 10. Members shall take care to ensure proper stewardship of philanthropic contributions, including timely reports on the use and management of such funds. 11. Members shall obtain explicit consent by the donor before altering the conditions of contributions. Presentation of information 12. Members shall not disclose privileged or confidential information to unauthorized parties. 13. Members shall 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.

9. Case The Children’s Miracle Network (CMN) raises funds for the Children’s Hospital which is a hospital within-a-hospital of a primary tertiary hospital. CMN is a primary source of income for the Children’s hospital for programs and specialty equipment which are not funded through traditional unit budgets. A radio-a-thon, has been held for several years, each year raising more money with goals set by the Hospital Foundation. Last year, they raised nearly $75,000 in this 3-day event. Two popular DJ’s, are the voices for this project to the public. Both have a deep and sincere interest in rising funds to help sick kids. The radio-a-thon runs for 3 consecutive days. During these three days, families are recruited to come and tell their story. Some are pre-recorded moving stories but many come in for live interviews about sick kids who have gotten well. These often are highly emotional live stories. As the 3-day event flowed, one of the DJ started to experience emotional overload and began openly sobbing on the air, begging his radio listeners to please donate money to these sick kids or for kids who dying of heart conditions, cancer, or infections. Some of those associated with the Children’s hospital became uncomfortable with the DJ’s conduct on the air. Attempts were made to pull back the DJ, who lightened up for a while, but then continued to beg to keep the phone lines ringing. Others were not as concerned with the behavior because the audience seemed to be mesmerized by getting the story of the children and the phones kept ringing. Parents also seemed to enjoy telling their stories over the airways.

10. Will accepting the gift enhance or compromise any core values? What is the donor’s intent? Will acceptance enhance or damage St. Somewhere’s reputation? Would acceptance of the gift be consistent with St. Somewhere’s socially responsible investment policy?