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.

What is the profile of today's leader?

The discussion around leadership and what it takes to be a good leader occurs every single day. What are the qualities and expectations of today’s leaders verse those in the past?

First, we must recognize that we live in a very different world today. There are many challenges facing today’s leaders that were not “in play” even five years ago. Jobs are being outsourced, technology and information are instantly accessible and competition is no longer “down the street,” but it is worldwide.

So, leaders today in both the nonprofit and for profit sector have to deal with a lot of variables. For example, raising money or making revenue on the Internet has become a fascinating phenomenon. Leaders have to be much more sophisticated and technologically savvy individuals.

However, leaders today do not have to be a lot different in other ways. There are certain core qualities that are needed to be a successful leader no matter where you are leading and what decade you are leading in.

Here are my top ten core qualities of a leader of an organization:

1. Leaders must build trust with their staff and board or they will never be able to lead at the maximum level.

2. Leaders must be extraordinary communicators. They must communicate effectively with individuals, internal and external stakeholders.

3. Leaders should be humble leaders and, as my grandmother would say, never get “too big for their britches.” Lead by example and knowledge and not by using a heavy hand. Always be fair and sensitive to others.

4. A leader does not spend his or her time being consumed with managing processes and systems. That is management. A leader sees the big picture and provides the strategic thinking needed to take the organization to a different level.

5. Leadership is a combination of ever changing and moving parts. A leader must be flexible, adaptable and accepting of change.

6. A good leader does not have all the answers. There are a lot of great ideas and bright minds that can give great advice and make useful suggestions.

7. A good leader must be willing to get down in the trenches and understand the organization from the ground up. There should be no job too big or too small for a good leader.

8. A good leader should be consistent in their demeanor, attitude and style.

9. A good leader needs to be a good listener. We all grow from listening and learning, no matter who is talking.

10. The leader must always be unselfish and put the mission first. It should never be about the individual leader but that leader is a conduit to success within the overall organization.


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

Wisdom

As I think about the “doom and gloom” that faces all of us today, I ask myself “what went wrong?” We find ourselves in such a complicated mess that I think the answer to this question is unachievable, at least, in a single response.

To me, it is a combination of many things that has put this nation, our economy and our future at risk. Furthermore, there is an overarching theme that can apply to the problems that have occurred.

“We have lost our moral compass and our wisdom.” We have become a self-centered, greedy and “instant gratification” society and we are now paying the price for it. It starts in our families and transcends into our schools, businesses, government and financial markets. Moreover, I don’t think we as a society, both individually and collectively, are a bit happier today because of our narcissism. I think we are more frustrated and less satisfied. I think we have created a society full of segregated egos and self-indulgence that overshadows the good things people do in society, and there are many people doing good things. And though there are plenty of these wonderful altruistic people in the world, it seems they are in the minority today.

So what is our moral compass? It is the God given wisdom and virtues that each of us possess in our hearts, minds and souls. It is starting every single day not thinking about what I am going to do for myself but what difference can I make in the world in which I live. Can it be that simple? Well, if we all get up tomorrow and our goal is to be honest, unselfish, virtuous, collaborative and sensitive, would it be different than how we viewed our day today? I say “yes.”

I also think if we were a society of people and not things we would be better off. We have become a people of computers, Blackberry’s, cell phones, video games, I-Pods, Tom-Toms, laptops, etc., and I don’t think it has made us any wiser or more moral. I wish we were more about talking face-to-face with people and making more of an effort to simply listen and interact with others “live and in person.” We are a smarter and more sophisticated society today with access to information instantly, but are we wiser? I am not sure that we are.

We must prioritize our lives and make it important to spend quality time with our families, help our neighbors and fellow citizens and do the right thing for others--even if it means personal sacrifice. I believe it is the only real way we will truly recover from the mess we are in. We must be willing to sacrifice and get away from our self-serving greedy attitudes. If we don’t, I truly believe we can expect, and maybe deserve, more doom and gloom in the future.

It is the wisdom and sensibility that exists in each of us that can guide us through these difficult times and make all of our lives more meaningful and, yes, happier.

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

Outlying USC Campuses Are Important to Our Future

The recent discussion regarding the closing of some of our outlying University of South Carolina campuses such as Lancaster and Salkehatchie concerns me. It is pretty easy to put a financial number on a facility and determine that by cutting back or closing it money is saved. I think the real issue here is what a decision of this magnitude will have on those communities and on the young people who reside in or near those communities.

When you look at rural South Carolina where poverty runs rampant, it is a whole different scenario than here in the capital city. There are very few educational options for students beyond high school. Many who live in Allendale and other outlying communities are the first in their families to ever attend college. I recently heard USC President Dr. Harris Pastides say that the gap between no college education and a two-year college degree is monumental. It can mean the difference between a job with growth potential, a retirement plan and health benefits versus a job that pays a minimum hourly wage with no benefits and a very limited future for growth.

With only 23% of the adult population in South Carolina, 18 years and older, having earned a four-year degree, having higher education attainable for these residents is a must. These schools give local students a hope for a better future and an opportunity for a better education right in the community where they reside. This is true not only for high school students, but also for younger students in elementary school. It gives them something tangible to strive for as a student. However, the chances of those same students enrolling in the Columbia campus or traveling 50 miles to the closest technical college are slim at best.

In addition, the influence of these schools goes beyond the classroom and earning degrees. They better the community through their libraries, cultural performances and programs to engage and enhance the residents. These schools bring communities together.

Even though we are going through tough economic times, let’s not throw the proverbial baby out with the bath water. Higher education is the stepping stone for our future workforce and yes, our future economy. Public education in South Carolina has been dismal for years, and I applaud the work of State Superintendent of Education Jim Rex’s effort to raise quality and overall standards for students so they can learn in a better environment and learn from teachers that have all the tools necessary to teach effectively.

But to now reduce the opportunities for extended education beyond high school, particularly in low-income communities, would be a mistake. We have to be sensible with our resources, and I realize that tough decisions must be made in state government with regard to costs and budget shortfalls. However, the last thing I would do is close any college campus in an outlying area. The minimal savings (less than 1% of the state’s higher education budget) that would occur would pale in comparison to the devastation it would have on these rural communities, and it will send a strong message to its young residents and also older working residents that want to go back and continue their education. “We don’t think getting an education beyond high school is that important.”

We already have one corridor of shame with our public schools in the I-95 corridor. Let’s not create a second corridor of shame for higher education, because to me, it will truly mean we are headed in the wrong direction.

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

The One Grant

Since the Foundation’s inception in 1996, there have been over 1,300 grant awards made to hundreds of organizations across South Carolina. Actually, the Foundation has awarded grants in every single county in the state. There have been very large grants and very small grants. Some have served large populations and some have served a small group of people. Several have been very strategic and systemic and others have been to deal with consequences and meeting basic needs of those living in poverty.

I have often been asked which grant made the biggest impact on me personally. That is a difficult question because so many good people are doing tremendous work and I value the hundreds and hundreds of nonprofit organizations and their people who serve others. It is one of the most rewarding parts of our Foundation ministry to me.

But back to the question about one grant. Well, yes there is one grant and grantee that changed my life in an instant. It came unexpectedly and it came quickly.

Back in the late 1990’s, I had a call from the mayor of Ravenel, South Carolina. Ravenel is a small town about 15 miles south of Charleston on Highway 17, also known as Savannah Highway. There is not much to see in Ravenel and most people see it by passing through it on their way to Charleston. The mayor told me about a lady named Claudia Bing who ran a small nonprofit called Caregivers for Individuals with Disabilities and she thought I should visit Ms. Bing to learn more about her work.

I had to be in Charleston the next week so I made arrangements to travel to Ravenel. I did not know what to expect and I wondered if this was going to be a worthwhile trip. The directions I was given was to go to Ravenel and look for the fireworks store in the middle of town on Highway 17, then drive behind the fireworks store to a double-wide mobile home. That is where I would find Ms. Bing. I followed the directions and sure enough I found the location.

It was a modest standard double-wide. As I parked and walked up to the house, I noticed a wheelchair ramp and a van with a lift. I also saw a couple of oxygen tanks on the wooden porch at the entrance. I knocked on the door and Ms. Bing greeted me.

Ms. Bing is a soft spoken older African-American lady and she welcomed me into her home. The first thing I saw was a younger white female in a wheelchair. I then saw another young man also in a wheelchair who was severely handicapped. There was another young adult in a hospital bed and he was very ill. I did not know what to think. I asked Ms. Bing, “What do you do here and what is your ministry?”

Ms. Bing replied, “I care for dying children. These are children that nobody else wants because they have terminal illnesses and have fallen through the foster care system, orphanages, etc. They have no family that wants them.”

I was speechless. Ms. Bing then took me by the hand and led me to her living room where there was a large framed picture collage. It had about 30 pictures in it. She said, “These are my children that I cared for that have passed on.” She began to name them one by one. “This was Cynthia; she was with me for 14 months and died of leukemia. This is Jason; he was with me for three years and died of brain cancer. This was Lawrence; he was with me for two years and died of cystic fibrosis.” She went through each picture one by one and told me their story.

I was beyond overwhelmed by this point. I asked Ms. Bing, “Why do you do this? Isn’t the pain of dealing with a child who is terminally ill a terrible thing and here you are by yourself carrying this heavy load? Tell me why?”

I will never forget her words. Ms. Bing looked me straight in the eye and said, “This is not hard at all. This is my calling. God has given me a gift and I am using it to my full ability. I don’t have a lot of money or material things but I do have a lot of love and I give it each and every day.” She went on to say, “my mission is to love these children and make them feel loved and when it is their time to pass, I will hand each one of them off to God and they will have been loved, valued, blessed and cared for. That is what I do.”

I left Claudia Bing’s home that day a different person. She had just taught me some of the most valuable lessons in life in a single hour. It was real clear and real simple to me. Claudia Bing was one of the richest people I had ever met and for all the right reasons. She received a grant from the Foundation and that is the one grant that changed my life the most.

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

Now What?

A plant near my hometown closed today. Nearly 700 jobs lost in an instant. The plant had been operating in the community for over 50 years. Now it is gone forever. What does it do to that community of 3,000 people? It does everything to it and none of it is good. The repercussions will include store closings, home foreclosures, default on personal loans, long unemployment lines and an overall community that will be devastated beyond recognition. Worse than that, this is just one community in one small state. If you multiply this situation times 1,000 then you get a better picture of what is happening.

We are in deep trouble in this country and it is not getting better in the foreseeable future. Can the government resolve our problems with stimulus money? It may help some, but it will not fix the problems we have. We are now witnessing the consequences of systemic problems that have been going on for years. A propped up financial system, poor loan practices, far too much debt to capital ratio and we are spending money we never had - both as individuals and as a country. We are the “want” generation and not the “need” generation and it is all tumbling down right in our proverbial laps.

Now what? I can tell you one thing; it is a pretty helpless feeling out there. People’s retirement funds have gone down the drain. Homeowners have lost value in their homes by the thousands. Jobs are dropping by the way side at a rate of more than 100,000 per week and state and local governments and school systems are on the brink of bankruptcy.

My advice is to protect your own families and finances as best you can while reaching out to others. There are a lot of people hurting and we have to help.

I was stopped at a gas station in Charlotte this week and a man came up to me and explained he was trying to get home to Asheville and did not have any money to put in his gas tank. He had a clunker car pulled up to the pumps, and he showed me the dollar in change he had. I went inside told the cashier to set his pump for $5 worth of gas and he added his money for a total of $6. It wasn’t much, but it got him on his way.

Help when you can. You may be feeling pain, but there are always others that are suffering more than we are.

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