Ethics are Important in Nonprofits

Ethics are extremely important in nonprofit organizations and for many different reasons. The challenges facing nonprofits today is greater than ever before. This is true with financial, operational and organizational issues. Ethical dilemmas face nonprofits in all three of these areas.

Recently, the United Way of Charlotte was placed under the microscope when the board’s executive committee, unbeknownst to many of the other board members, took nearly $1 million of donor funds and placed it in the retirement account of the CEO. Their explanation was that it was to make up for past commitments. The outcome of this dilemma was not pretty. The chairman of the board and several trustees resigned. The public relations fall out to the United Way of Charlotte was devastating. Their financial campaign was significantly down from the previous year, and the CEO was forced to resign and has since sued the United Way for wrongful termination.

Could this all have been avoided? Yes. First of all, there should be full disclosure among all board members. A commitment of this nature was the first mistake made by the board of trustees. You don’t want to promise things that you will have to pay for later, particularly if it involves a lump sum of nearly $1 million. If a commitment was made to the CEO then an equitable plan should be devised that is fair to the donors, fair to the CEO and protective of the reputation of the United Way.

Trustees are as responsible as staff for the health and well-being of a nonprofit. There should be a code of ethics, conflict of interest statements signed by every board member and other checks and balances in place to protect the integrity of the organization. In addition, the board should appoint a committee to monitor the board’s performance and behavior.

Every nonprofit is beholding to the public trust. When they accept a donation or grant from an individual or group, they have a fiduciary responsibility to protect these funds and use it for its mission and purpose. When one nonprofit falters then it has a very negative impact on other nonprofit organizations in that community. It is without question that nonprofit are, and should be, held to a higher standard. It is the role of the board and staff to insure that protective measures are put in place and certain standards are met continuously. Anything less is a recipe for problems which need to be avoided at all costs.


Tom Keith is the president of the Sisters of Charity Foundation of South Carolina

Prayer

Ever since I got on my knees as a youngster and prayed before going to sleep, I have wondered about and witnessed prayer. The power of prayer can often go unnoticed in our every day lives. It is prayer that gives us a sense of comfort, a sense of hope and a feeling of God’s hand and spirit in our lives.

By sharing our feelings through prayer, we open our hearts to God with a spiritual conversation. To me, it is like talking to a family member in the same room. “Hey God, I have a heavy burden and I need to share it with you.” I want to pray not only when prayer is needed but when prayer is a form of sharing and expressing. When my son leaves to drive back to Atlanta, I pray for him. When I visit my Mother in the retirement home, I pray for her. Prayer has become a daily activity and necessity. The day does not feel complete without it.

Whether you pray alone or pray out loud in a group, it is such a valuable message to God. It connects our lives with God’s purpose for us. We often ask for guidance, wisdom, understanding, healing, patience and gratefulness. It is important to me to always thank God for his presence in our lives and for the many gifts he has given me and my family. Sometimes I feel like I am on life’s treadmill and the machine is going faster and faster and it is difficult to keep up. But it helps to take the time to reflect, meditate and pray.

Prayer may be the best stress reliever we have. What prayer can do for our physical, mental and emotional health is pretty astounding not to mention our spiritual health. Many times my prayers are not very eloquent or even not well thought out. But, the fact that they are heartfelt and well-intended gives me comfort and, I believe, is just fine with God.

I think that prayer is the great connector. We have an opportunity to praise God for his goodness, to ask for his forgiveness, to pray for someone in need, to forgive us of our sins, thank him for the gifts he has given us and to keep us safe. Whatever the reason, God is there for us and is always ready to listen.

Tom Keith is the president of the Sisters of Charity Foundation of South Carolina.