Christian Foundation Grants

Nonprofits and Ethical Leadership

The effects of the recent economic downturn are undeniable in the lives of nonprofits: high operating costs, increased demand for services, and the nagging question of whether donors will continue their support in the midst of trying times are worries that weigh on the minds of  many organization leaders. Tim Delaney, president and CEO of the National Council on Nonprofits, has noted the increased pressures on organizations throughout the last few years, and asserts that the economic dowturn can be traced to shabby ethics in the government and giving sectors. At a workshop sponsored by the Philanthropy Journal, Delaney illustrated his claim by highlighting the moral downfalls of prominent and once well-reputed groups, pointing out that those failures have made the public wary. But Delaney offered a solution to bridge the gap of trust: ethical leadership from nonprofits, which can best be implemented by the creation of an ethics program.

In creating an ethics program, nonprofits should keep in mind the big picture of why they exist in the first place. What is the ultimate vision and purpose for the nonprofit? Who does it serve and why? A mindfulness of these crucial points is the first step to clearly outlining ethical stances. Delaney offers a few tips for building an ethics program:

1) Identify the necessity of ethical guidelines

2) Appoint an ethics officer

3) Evaluate the ethical condition of the organization

4) Call upon stakeholders to help create an ethical policy

5) Make every effort to uphold the ethical policy and adapt it as needed

6) Evaluate the moral example of organization leaders

Nonprofits exist to serve communities and the people within them – if they are to be successful in their mission, they must demonstrate through their daily operations the same moral conciousness they intend to foster through their service.