Friday, November 02, 2007

AFP Ethics Code Expanded to Include Businesses

"AFPs Code of Ethical Principles and Standards of Professional Practice has been amended and expanded to apply to for-profit businesses involved with or supporting fundraising. (follow this link)"

"The changes, which include the addition of seven new standards and the alteration of one standard, now allows for-profit businesses to join AFP as members and actively promote ethical and efficient fundraising."

This announcement from AFP is most welcome. As a long-time CFRE, I have annually signed a statement that affirms my commitment to the AFP Code of Ethics. It's great to see that they are now placing pressure on businesses serving the nonprofit sector.

I am especially happy with the following amendment to the standard regarding percentage-based compensation:

"Standard 21 now reads (new language in italics): 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)."

I have a great deal more to say about the matter of commissions and percentage-based compensation as it especially relates to public broadcasting, but I'll save it for another post.

Talk to you soon!

Bob