The Role of Ethics and Accountability in · PDF fileThe Role of Ethics and Accountability in Advancement Presented by: Catherine K. Spickard Director, Office Of Gift Administration

TheThe Role ofRole ofEthics and Accountability Ethics and Accountability

in Advancementin Advancement

Presented by:Presented by:Catherine K. SpickardCatherine K. Spickard

Director, Office Of Gift AdministrationDirector, Office Of Gift AdministrationUniversity of MichiganUniversity of Michigan

Topics of the DayTopics of the Day

Ethics Ethics The Issues at HandThe Issues at HandEthics & Accountability DefinedEthics & Accountability DefinedInstitutional Values and AccountabilityInstitutional Values and AccountabilityEthical Principles for FundEthical Principles for Fund--Raising ProfessionalsRaising ProfessionalsEthics in AdvancementEthics in AdvancementCASE Statement of EthicsCASE Statement of EthicsAccountability StandardsAccountability StandardsCloser to HomeCloser to HomeChallengesChallengesOpportunitiesOpportunitiesSummarySummary

Ethics Ethics Issues at HandIssues at Hand

Societal trust diminished due to increased Societal trust diminished due to increased corporate scandalscorporate scandals Allegations of misuse of fundsAllegations of misuse of funds Restated financial statementsRestated financial statements Shareholder valueShareholder value

Corporate Corporate -- ExamplesExamples

EnronEnronTycoTycoPrudential FinancialPrudential FinancialAnd many moreAnd many more....

Ethics Ethics Issues at HandIssues at Hand

Higher education/charitable organizations are Higher education/charitable organizations are not immunenot immune Surveys indicate Surveys indicate givinggiving confidence levels confidence levels

continue to decrease continue to decrease Fiscal constraints require organizations to focus Fiscal constraints require organizations to focus

on the bottom lineon the bottom line Governmental funding limitedGovernmental funding limited IRS closely scrutinizing donations made to IRS closely scrutinizing donations made to

charitable organizationscharitable organizations

ExamplesExamples

American Red CrossAmerican Red CrossHarvardHarvardUnited WayUnited WayUniversity of TexasUniversity of TexasMany that deal with athleticsMany that deal with athletics

Ethics & AccountabilityEthics & Accountability

And this meansAnd this means..

Ethics Ethics -- DefinedDefined

A set of principlesA set of principles

The principles of conduct governing an The principles of conduct governing an individual or groupindividual or group

AccountabilityAccountability

Defined:Defined:An obligation or willingness to accept An obligation or willingness to accept responsibility responsibility or or account for oneaccount for ones s actionsactions

Ethics & AccountabilityEthics & Accountability

Ethics refers to Ethics refers to HowHow we do thingswe do things Many ethical problems in nonMany ethical problems in non--profits are profits are

caused by lack of openness. Key term caused by lack of openness. Key term --TransparencyTransparency

Accountability focuses on Accountability focuses on WhatWhat we dowe do We must demonstrate to our constituents that We must demonstrate to our constituents that

we are worth their trust and investment. Are we are worth their trust and investment. Are we responsible for our actions?we responsible for our actions?

My Simplistic DefinitionMy Simplistic Definition

Ethics and AccountabilityEthics and Accountability The term which means The term which means Doing the Right Doing the Right

ThingThing

A decision, action, and the consequence for A decision, action, and the consequence for eacheach

The CaveatThe Caveat

A truly ethical & accountable organization A truly ethical & accountable organization only exists if its leaders only exists if its leaders adopt and liveadopt and liveethical principals in decision making. ethical principals in decision making. Importance must be placed on VALUES Importance must be placed on VALUES --not simply the bottom linenot simply the bottom line

In Our EnvironmentIn Our Environment..

The important componentsThe important components

Institutional Values & Institutional Values & AccountabilityAccountability

Is the mission of the institution clearly articulatedIs the mission of the institution clearly articulatedAre polices in place to promote ethical decision Are polices in place to promote ethical decision making (ex. Gift acceptance) and is compliance making (ex. Gift acceptance) and is compliance monitored (accountability)monitored (accountability)Do you have a formally adopted (written) code of Do you have a formally adopted (written) code of ethicsethicsDo your own values align with those of the Do your own values align with those of the institutioninstitutionAre institutional leaders living the valuesAre institutional leaders living the values

Ethical Principles for FundEthical Principles for Fund--Raising Raising ProfessionalsProfessionals

Personal IntegrityPersonal IntegrityConfidentialityConfidentialityPublic TrustPublic TrustDisclosureDisclosureCompensationCompensation

(Adopted by CASE Board of Trustees 11/05)(Adopted by CASE Board of Trustees 11/05)

Ethics in AdvancementEthics in Advancement

CASE Statement of EthicsCASE Statement of EthicsAFP Code of Ethical Principles and AFP Code of Ethical Principles and StandardsStandardsDonor Bill of RightsDonor Bill of RightsIndependent Sector Ethics and Independent Sector Ethics and Accountability Committee Statement of Accountability Committee Statement of EthicsEthics

CASE Statement of EthicsCASE Statement of EthicsOur GuideOur Guide

Promote the merits of the institution without Promote the merits of the institution without disparaging other colleges and schoolsdisparaging other colleges and schoolsRespect all individualsRespect all individualsSafeguard privacy rights and confidential Safeguard privacy rights and confidential informationinformationUphold the professional reputation of Uphold the professional reputation of advancement officers and give credit for advancement officers and give credit for ideas or images originated by othersideas or images originated by others

CASE Statement of EthicsCASE Statement of EthicsOur GuideOur Guide

Do not accept favors for personal gainDo not accept favors for personal gainAvoid conflicts of interestAvoid conflicts of interestFollow the letter and spirit of laws and Follow the letter and spirit of laws and regulations affecting advancementregulations affecting advancementObserve these standards and encourage Observe these standards and encourage colleagues to do socolleagues to do so

Accountability Standards for our Accountability Standards for our BusinessBusiness

CASE Management & Reporting StandardsCASE Management & Reporting Standards Helps ensure an objective way to measure fundHelps ensure an objective way to measure fund--

raising performanceraising performance Protects organizationProtects organizations credibilitys credibility Avoids inaccurate fundAvoids inaccurate fund--raising comparisonsraising comparisons Strengthens view of philanthropyStrengthens view of philanthropy

Regulatory Oversight Regulatory Oversight Some Some OverlapOverlap

FERPA FERPA protects privacy of student protects privacy of student recordsrecordsHIPPA HIPPA pertains to security of medical pertains to security of medical informationinformationGLB (GrahamGLB (Graham--Leach Bliley Act) Leach Bliley Act) applies applies to financial institutionsto financial institutions(SOX) Sarbanes(SOX) Sarbanes--Oxley Act Oxley Act pertains to pertains to financial reportingfinancial reporting

Closer to homeCloser to home..

How all of this effects our daily gift How all of this effects our daily gift processing operationsprocessing operations

Crediting the legal donor of a giftCrediting the legal donor of a giftMatching giftsMatching giftsPledgesPledgesDonorDonor--Advised FundsAdvised FundsGiftsGifts--in Kindin Kind

Today Today Where We StandWhere We Stand

ChallengesChallenges

Good intentioned Development Officers Good intentioned Development Officers may not be well versed on the rules and may not be well versed on the rules and regulations regulations make commitment for make commitment for something we cansomething we cant dot doDonors may ask (expect?) exceptionsDonors may ask (expect?) exceptionsAddressing potential issues with Addressing potential issues with management relating to (un)ethical management relating to (un)ethical observationsobservations

OpportunitiesOpportunities

EducationEducation Providing formal training at the early stage of Providing formal training at the early stage of

the game may help alleviate potential problems the game may help alleviate potential problems down the roaddown the road

Coach, mentor and guideCoach, mentor and guide....

To SummarizeTo Summarize

The subject of ethics is extremely complexThe subject of ethics is extremely complex Ethics can be viewed as a business and an art Ethics can be viewed as a business and an art many many

gray areas and little in clear black and white (AFP gray areas and little in clear black and white (AFP 10/05)10/05)

Important to know what your own set of values Important to know what your own set of values are are CanCant control the actions of otherst control the actions of others Ask yourself and feel comfortable that you Ask yourself and feel comfortable that you Did the Did the

right thingright thing

Questions & CommentsQuestion