Unethical behavior regarding finances is a persistent problem with non-profits. Charities generate majority of their revenues using the non-market mechanism such as soliciting for donations from individuals, organizations and government entities. This avenue of sourcing funds predisposes the non-profit organizations to potential fraudulent activities (Rhode & Packel, 2009). High prevalence of non-ethical practices in non-profit organizations has consequently eroded public confidence in the charitable organizations.
Incidence of Ethical Malpractices and Possible Remedial Actions
Several ethical issues arise in the non-profit sector regarding the use of finances. The charitable organizations are usually exempted from taxes and enjoy waivers from the government when soliciting for funds to help finance their operations. One of the salient ethical areas is compensation (Rhode & Packel, 2009). The charitable organizations have a responsibility to the communities they serve to use the resources allocated to them by donors in a way which conveys prudency and rational use of resources (Rhode & Packel, 2009). For example, when it comes to salaries and remuneration, the resources used should only be reflective of the work these charitable organizations are doing in the community. The administrative costs have to be maintained at minimum, while emphasis is laid on program expenses (Rhode & Packel, 2009). The responsibility and privileges accorded to the non-profit organization should be reflective of the work they do in a community setting.
Delegate your assignment to our experts and they will do the rest.
Conclusion
Non-profit making organizations have a sense of responsibility first to the communities they serve and to their donors. The needs of the directors including remuneration should only be met after program obligations affiliated with the non-governmental organizations are met. Also, the non-profit organizations provide a watchdog forum in the community, hence should always be conscious of the affiliations they commit with their donors and sponsors.
References
Rhode, D. L., & Packel, A. K. (2009). Ethics and nonprofits. Sanford Social Innovation Review. Online resource retrieved from: https://ssir.org/articles/entry/ethics_and_nonprofits#. Accessed on: 15 th November, 2018.
