Effective fundraising and development must include careful consideration of the laws and regulations that govern such activities, which include interactions with donors, staff, and volunteers. However, these interactions do not cease when a gift is secured and acknowledged, as ethical practice and transparency also include reporting back to various stakeholders regarding the ‘return on investment’.
If a gift was given for a particular program, for example, were the funds used for that purpose? What successes were achieved? What if there were unanticipated challenges?
The very nature of a gift can also bring about ethical considerations. A business might, for instance, want to donate their services ‘in-kind’. What services can be accepted in this manner? Should in-kind services be recognized and acknowledged similarly to cash gifts? What about gifts of stock?
The nature of a gift may necessitate different ways to acknowledge it. For instance, some donors might want ‘top billing’, whereas others may wish to remain anonymous.
Aside from the nature of a gift and its acknowledgment, ethical practice and transparency relate to the actual handling of the money and all aspects related to it, including donor record maintenance, gift accounting, financial management, and audit trails. In other words, the accounting side of receiving a gift must align with what is promised by the fundraiser/development professional to donors/philanthropists.