The Nonprofit Squabble Over Ethics and Illegality
As the Nonprofiteer demonstrated Tuesday, one person’s ethics can be another person’s unwanted obligations. Houston Chronicle business columnist Shannon Buggs wrote last week about a set of principles recommended by a panel convened by Independent Sector, a coalition of charities, foundations, and corporate giving programs, regarding "ethical conduct, accountability, and transparency." Six of the 33 guidelines issued by the panel are required by law, so debate them if you’d like, but it ain’t gonna change anything. The other 27, though, have stirred up some disagreement within the sector, with the Association of Fundraising Professionals joining dozens of nonprofits signing on in agreement, while the Philanthropy Roundtable posted reasons why it disagreed (the link to the statement at the group’s website seems to be broken, unfortunately). According to Buggs, the roundtable stated:
- "The principles take an arbitrary and one-size-fits-all approach to setting standards for a very diverse sector."
- "The principles imply improperly that foundations act unethically or practice misgovernance unless their boards include members from diverse backgrounds."
- "A number of the more problematic principles could be written into law or regulation if it is perceived that there is a wide consensus behind them in the nonprofit community."
But, wait — there’s more!
And that same Independent Sector committee, the Panel on the Nonprofit Sector, has also advised legislators on new laws that strengthened the accountability and governance of charitable organizations, the Chronicle of Philanthropy reported.
Hmm. That sure sounds as if legislation is coming down the pike, doesn’t it? But does the panel’s contributions to that effort constitute a reasonable attempt to engage lawmakers in the process, or sleeping with the enemy? | 501(c)
Photo: PicApp
Tags: Independent Sector, Panel on the Nonprofit Sector, nonprofit ethics
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POSTED IN: Accountability, Ethics, Government, Illegality
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