Revised Code of Ethical Standards addresses social justice, racism and equity

The proliferation of misinformation and deception on the internet and elsewhere makes it “absolutely essential” for fundraising professionals to be able to show donors that they adhere to a strict and enforceable code of ethics, says Jennifer Johnstone, chair of the board of directors of the Association of Fundraising Professionals Canada.

“Earlier this year, Policy Horizons Canada produced a report on the disruptions that we can expect to see in the future, and the number one disruption they identified and the greatest threat to democracy in our country is that people can no longer tell what’s true and what’s not,” she says. “Being able to trust that what you’re hearing is true has become essential.”

Fortunately, Canada’s charitable sector is currently still trusted by a strong majority of people. An opinion poll conducted by Imagine Canada earlier this year showed that seven in 10 Canadians say they trust charities generally.

The highest trust is in Quebec (74 per cent) and the lowest in the Prairie provinces (62 per cent). Gen Xers born between 1966 and 1980 are least likely to trust charities (62 per cent).

With trust and integrity in general becoming a significant social issue, AFP Global published a revised Code of Ethical Standards last month to help professional fundraisers through what has become a minefield of misinformation and lack of trust. The Code provides adequate structure and guidance regarding social justice, anti-racism and equity.

“It’s important for donors to know that our members are bound by a Code of Ethics that commits them to telling the truth and keeping their promises,” says Ms. Johnstone. “While there’s a lot more to the Code, trust and truth, for me, are fundamental elements.”

Roger Ali, chair-elect of the board of directors of AFP Global – the second Canadian to lead the international organization – participated in board discussions around the Code revision.

Jennifer Johnstone is chair of the board of directors of the Association of Fundraising Professionals Canada. **supplied**

A task force of the AFP Ethics Committee was formed to review, refresh or revise the Code. A subcommittee of the task force completed a sector-wide values review, which identified and differentiated those values that were believed to be essential to the Code and the profession. It focused only on values that are unique to the Code, and not those that already exist in AFP’s mission, vision, values and purpose statement.

At the conclusion of the analysis and discussion, seven values were selected: adherence, accountability, courage, trust, honesty, integrity and transparency.

The Code’s standards of practice – public trust and transparency; conflicts of interest; solicitation and stewardship of philanthropic funds; donor privacy; and fair, equitable and transparent compensation practices – were clarified and modified after focus groups and listening sessions.

“The Code review revealed the need for statements of how we treat each other as ethical professionals as well as the need to effectively communicate the ‘why.’ That’s an important piece because it describes more of what you should and should not be doing,” says Mr. Ali.

The updated Code will serve as the guide for professional fundraisers who agree to adhere to it when they join AFP or renew their membership.

“It will help them serve their organizations more effectively by making ethical decisions in today’s challenging environment, and it will help ensure individuals are more equitable in the way they view others and in their interactions with others,” says Mr. Ali.

Ms. Johnstone says building and maintaining personal relationships with donors is important in establishing trust.

“We encourage our members to communicate with their donors and make their AFP membership and our Code of Ethical Standards visible as part of the relationship-building process,” she says. “We also encourage fundraising organizations to post the Code on their websites or make it known in other communications with donors. Our goal is to support the development and practice of excellent and ethical fundraising.”

Ms. Johnstone says membership of AFP and adherence to the Code of Ethics is validation of the integrity of professional fundraisers.

“It tells donors that not only are you telling the truth and keeping your promises, but also, unlike some other organizations, you face penalties if you don’t through an AFP enforcement arm that investigates allegations of unethical behaviour and, if necessary, takes disciplinary action; anything from a letter of reprimand through to permanent expulsion from AFP,” she says.

Mr. Ali says ethical challenges professional fundraisers might face could include a misalignment with the values and objectives of a donor who may want to fund something that the fundraiser feels is not aligned with the mission and purpose of the fundraiser’s organization.

The pervasive use of artificial intelligence could also become an ethical challenge when presenting or assessing information, he adds.

Training and guidance are important in helping fundraisers understand and cope with the ethical challenges they might face, says Ms. Johnstone.

“There are education programs online and at AFP gatherings, whether it’s the international conference, the leadership conference, local chapters, or publications and online communities,” she says. “In addition, as a condition of membership, everyone who joins or renews membership of AFP must review and sign off on the Code of Ethical Standards; and October is designated ethics month at AFP, so there’s usually additional education then as well.”

Maintaining and increasing trust in Canada’s charitable sector remains crucial to its role of making a difference in the lives of beneficiaries, says Ms. Johnstone.

“All across our sector, whether we’re talking about health or social services or higher education, the funds raised by professional fundraisers go towards the mission of those organizations and ultimately to making a positive difference in the world and improving lives,” she says. “In order to deliver on those missions, organizations need to be able to invest in their programs, their capacity and their professional fundraisers, and ensure that effective, efficient and ethical fundraising is being conducted and that the funds are being used for the purpose for which they were intended.”

Learn more: afpglobal.org

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Today is National Philanthropy Day – an opportunity to celebrate and honour Canada's social sector.

The Association of Fundraising Professionals (AFP) represents more than 26,000 fundraisers around the globe, partnering with donors and volunteers to change the world through ethical and effective fundraising. AFP helps its members raise more than $100-billion annually for a wide variety of causes through advocacy, research, education, mentoring and the most rigorous code of ethics in the profession.

The 3,000 AFP members in Canada are leaders in the charitable sector – a sector that contributes over 8 per cent to Canada’s GDP annually. They raise funds for organizations large and small. They support arts, culture, shelters, emergency services, health care, education and social justice. Their fundraising efforts help fight poverty, hunger, climate change and inequalities in Canada and around the world.

To view this report on The Globe's website, visit globeandmail.com

To view the full report as it appeared in The Globe's print edition National Philanthropy Day

Donor trust crucial to fundraising efforts