Wall Street Journal reports how various businesses are being created to help school fundraising to go Green.  It is some thing many nonprofits can consider.

IT was just recently announced that the Bill and Melinda Gates foundation has awarded Massachusetts public libraries $8 million for upgrades to the many out of date computers that are still being used.

Photo by Salerie

What tangle web of abuses humans are prone to commit.  What is a Board to do?  Stay above it by providing the clear light that is afforded by the protection of clarity.

Today’s Wall Street Journal’s article on page D3 titled “Scam Highlights Abuses In Charitable Write-Offs” I found having similar themes to my focus on Conflict of Interest.  Conflict of Interest can be between a donor and the organization if there is personal gain by the donor. For more details on the article click here.

* No arranging kickbacks
* No disguising payments for services as a charitable donation
* No over valuing non cash donations.

The Conflict of Interest holds true in contracting or hiring individuals to do professional fundraising.  According to the Association of Fundraising Professionals (AFP) Code of Ethics. www.afpnet.org.  Those involved in fundraising, who are members of AFP, and thus sign the Code of Ethics; compensation as a percentage of funds raised is prohibited (#21), however, bonuses are allowed (#22).   So if the development office performance bonuses are based on something other than percentage of funds raised, it is allowed.  This is a good standard to follow regardless whether the person is part of AFP.

Compensation and Contracts

21.  Members shall not accept compensation or enter into a contract that is based on a percentage of contributions; nor shall members accept finder’s fees or contingent fees.  Business members must refrain from receiving compensation from third parties derived from products or services for a client without disclosing that third-party compensation to the client (for example, volume rebates from vendors to business members).

22.  Members may accept performance-based compensation, such as bonuses, provided such bonuses are in accord with prevailing practices within the members’ own organizations and are not based on a percentage of contributions.