Ethics in the nonprofit world

If you are considering a donation or bequest to a nonprofit agency, no doubt you have done your due diligence and asked questions about its governance, mission, standards, financial oversight and compliance with laws and regulations. At the Southwest Florida Community Foundation, as stewards of money that caring donors have left for community needs, we are particularly careful about scrutinizing the nonprofit agencies that receive donor funds.

But we don't stop there. Just looking at an agency's mission and compliance program today is the lowest common denominator. We expect every nonprofit to do good work. We expect every one to also have robust controls and comply with myriad rules and regulations ranging from tax compliance to employment, health and safety. This standard "goes without saying" and we are not impressed when an agency executive hands us a dense, lawyer-drafted policy code. These documents, while important, can also be nothing more than a "paper program" and may not serve to influence behavior.

Compliance tells employees and volunteers about the law and organizational policies that are important. A compliance manual is often negative, reciting "should nots" and its goal is to prevent violations. It does not help employees resolve situations that can't be found in the rulebook. Just because a proposed action is legal does not mean it is right or conforms to agency values.

Similarly, while nonprofits also give us their mission statement, that's not enough either. We expect agencies to do good work, and that donor money is being used effectively. We're happy that volunteers are encouraged and that employees understand community needs. But doing good in the external world is not the same as meeting objectives with high standards of integrity.

What we look for is evidence of an ethical culture. Good codes of ethics are one tool that can provide broader, values-based commentary and resources so that employees can make an informed decision when faced with a difficult choice. They include mission statements (the "what"), values statements (the "how"), as well as examples and questions and answers.

Here are some statements that impressed us from a code of ethics:

. Realize that the easiest action is not always in the best interest of the agency. Never compromise integrity for what may seem like a quick solution to a problem.

. Have the courage to face situations directly and to offer a different opinion when necessary.

. Never rationalize shortcomings or underachievement. Seek to overcome challenges and attain success through exemplary service.

. Respect our profession by conducting ourselves in a manner that deserves the respect of others.

We have a saying in the business ethics world: "Culture trumps compliance." What this means is that even though organizations may have detailed compliance manuals, employees really behave according to an unwritten standard of "how things are done around here." We happily support organizations that have codes of ethics and exemplify integrity in everything they do, and we encourage you to do so as well.

The Southwest Florida Community Foundation has been supporting the communities of Lee, Charlotte, Collier, Glades and Hendry through endowed funds for nearly 32 years. With assets of more than $57 million and over 320 endowed funds, the Community Foundation has provided more than $30 million in grants and scholarships to the communities it serves.

For more information, call 274-5900, or visit their Web site at www.floridacommunity. com.