In its everlasting quest to receive funding, a nonprofit organization may be faced with various ethical concerns. Three areas that are particularly liable to ethical issues are:
1. The Sources of Funding
2. The Socio-Political Location where funds are applied
3. The Specific Causes that receive collected funds
1. The Sources of Funding
In an attempt to increase community goodwill and gain good P.R. points, a private company may choose to donate money to a nonprofit. It is important to the stability and success of the nonprofit to screen the monies received from corporations – as opposed to accepting all incoming donations.
Example: Gold Rush Casino donates money and forms a strategic partnership with the local Counseling Center for Gambling. The deal turns sour for the Counseling Center when the casino is accused of defrauding and taking advantage of slot machine users. The local community may very well correlate the Casino’s actions with the reputation of the well-intending Counseling Center for Gambling. The Center then stands to lose it’s members’ support – then sponsorships – then operating funds – and the rest is history. Continue reading …