Principle 6: Fundraising

Nonprofit organizations play an important societal role in serving as the vehicle by which philanthropy occurs. Nonprofits act as the intermediary between donors and beneficiaries and have an ethical obligation to ensure proper handling of funds to carry out their missions. Nonprofit fundraising should be conducted according to the highest ethical standards wit regard to solicitation, acceptance, recording, reporting and use of funds. Nonprofits should adopt clear policies for fundraising activities to ensure responsible use of funds for designated purposes and open, transparent communication with donors and other constitutions.

Infrastructure Checklist

Connecticut Charitable Solicitation License
Registration for Each Contractual Fund Development Professional
Connecticut Regulations for Applicable Fundraising Events
Reporting Requirements, Due Dates
Case Statement           
Fund Development Plan
Donor Recognition Plan
Gift Acceptance and Recognition Policy
Individual Donor Requirements
Donor Database
Grants Management System     
Communications and Public Relations Plan
Marketing Plan
 

Recommended Practices

  1. A nonprofit must comply with all local, state and federal laws and regulations concerning fundraising practices.
  2. A nonprofit board and executive should be familiar with the Association of Fundraising Professionals’ Code of Ethical Principles and Standards of Professional Practice 5 and ensure that all fundraising professionals acting on behalf of the organization adhere to these principles and standards.
  3. A nonprofit board assumes overall responsibility for raising sufficient funds to meet the organization’s budgeted objectives.
  4. Fundraising communications should include clear, accurate, honest information about the organization (including charitable solicitation license number), its activities and the intended use of funds.
  5. A nonprofit has an obligation to use funds according to donor intent and to comply with specific conditions for donations.
  6. A nonprofit should not share or trade donor names with others unless given permission by the donor.
  7. A nonprofit should regularly communicate through multiple outlets with donors regarding its activities.
  8. To maintain the public’s trust, a nonprofit should seek only the funds it needs to reasonably work toward achieving its mission over the foreseeable future. When appropriate, endowment and reserve funds can be established to advance the organization’s mission.
  9. A nonprofit should have policies in place that govern the receipt, disposal and management of charitable gifts and grants.
  10. A nonprofit should manage and supervise fundraising activity conducted by contractual service providers. 
5 Available at www.afpnet.org

 Indicates "must" practices required by state or federal law

 Indicates IdeaEncore contribution

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