Fundraising ethics for small organisations

What does ethical fundraising mean?

Fundraising asks people to trust you with money meant for others. Ethics is how you keep that trust. A small organisation has no large legal team, so the rules must be simple enough for every staff member to remember.

The Association of Fundraising Professionals (AFP) sets out five shared principles in its international statement: honesty, respect, integrity, transparency and responsibility. These ideas apply to a village-level group as much as a large charity. Laws on fundraising differ by country, so check the rules that apply to you.

How do you stay honest in fundraising messages?

Honesty covers what you say about your work, your results and your costs. Check every proposal, post and appeal against these questions:

• Is every number real and from your own records?
• Does the text describe what the donation will actually buy or fund?
• Have you promised results that depend on factors outside your control?
• Would a donor feel misled if they visited the project?

The UK Fundraising Regulator code states that information about your organisation and fundraising activities must be accurate. It also says that you must be able to show case studies are representative of real situations, and that you must make it clear if any details were changed.

How do you treat the people in your stories?

Stories raise money, but they also affect real people. Follow these steps before you use any story or photo.

1. Ask for permission in a language the person understands. Explain where the story will appear, who will see it, and how long you will keep it.
2. Offer a real choice. The person must be able to say no without losing any service or support.
3. Protect identity where there is risk. In sensitive settings, remove names, faces and exact locations, and say that you did so.
4. Show dignity. The AFP statement says fundraisers will uphold the dignity and self-respect of beneficiaries in their materials. The UK Fundraising Regulator code says not to use shocking claims or images merely to attract attention.
5. Check with the person before publishing, where you can. This is hard when connectivity is poor, but even a phone call helps.

Our guide to storytelling for NGOs without exploiting people goes deeper on this step.

How do you honour donor intent?

When a donor names a project for their gift, use the money for that project. The AFP statement says that if the funds cannot be used as the donor wished, the fundraiser will seek further agreement from the donor.

In practice, this means:

• Record the purpose in writing when you receive the gift.
• Track the money so you can show where it went.
• If plans change, contact the donor before you change the use, not after.
• Report back on what the gift achieved. See how to write donor reports that build trust.

Which gifts should you refuse?

Some gifts carry a cost that is larger than the money. The AFP statement says fundraisers will not accept donations that are not in the best interests of the organisation or that create a conflict of interest harmful to its mission and its relationship with supporters and beneficiaries.

Decide in advance when you will say no. Common cases to think about:

Have the director and board, or the leadership team, agree on each refusal. Record the reason.

What goes in a simple fundraising ethics policy?

Two pages are enough. Include:

• Your values on honesty, dignity and consent.
• Rules for stories, photos and case studies.
• Who may accept a gift, and who must approve a large or unusual one.
• A list of gifts you will not accept.
• How you handle donor data and privacy.
• How staff raise a concern, and who receives it.

Review it once a year. Share it with staff, volunteers and any consultant who raises funds for you.

How EMPO can help

EMPO is a reliable, trusted training and consultancy provider and one of Myanmar's leading names in practical NGO training, with 1,200+ people trained and 15 partner organisations. Based in Yangon, we run proposal writing and organisational development support, online or in person across Myanmar, in English and Burmese. See our services or contact us to plan a session for your team.

Sources

• International Statement of Ethical Principles in Fundraising — Association of Fundraising Professionals, 2018
• Fundraising communications and advertising — Fundraising Regulator (UK), Code of Fundraising Practice