The Ethical Fundraising and Financial Accountability Code

Imagine Canada… Imagine Canada looks into and out for Canada’s charities and nonprofits. Imagine Canada’s research and public policy facilitate increased philanthropy and public engagement. Imagine Canada also creates tools and resources like the Ethical Code Program, that help charities and nonprofits fulfill their missions.

Ethical Code - Introduction The Ethical Fundraising and Financial Accountability Code was developed by the Canadian Centre for Philanthropy (now Imagine Canada) in the late 1990s. The Ethical Code sets out standards or guidelines on donor relations, fundraising practices and financial reporting for charitable organizations. Following a research and consultation process in 2007, a revised version of the Ethical Code was released. The Ethical Code is complementary to the Association of Fundraising Professionals ’ Code of Ethics.

Ethical Code Program The Ethical Code Program is designed to help maintain and build public trust in the sector. It is also a movement of charities committed to ethical fundraising and financial accountability. Revised Ethical Code Program re-launched in January 2008 with a greater focus on accountability. Program participants are eligible to use the Ethical Code ‘ trustmark ’ or logo that signals to donors that they comply with the Code.

Why do we need the Ethical Code Program? Public expectations around accountability and transparency are increasing. Donors are asking more questions about how donations are being spent. Increasing media coverage of fraud, high fundraising costs, and questionable fundraising practices may lead to weakened public trust. Although trust in charities remains high (see Muttart Foundation report: Talking about Charities), charities need to play a leadership role in responding to these issues before they become a major problem.

Benefits of Participation Demonstrates to donors and the public that your organization is committed to ethical fundraising and financial accountability. Assures donors that you value their contribution and will steward their donations to ensure they have the greatest impact. Provides you with a baseline against which you can evaluate your practices. Enhances awareness of fundraising and financial accountability among staff members, board members, and volunteers.

Program Status Between January and June 2008, more than 125 charities joined the Ethical Code Program. Participants come from across Canada and represent a variety of subsectors (e.g., health, social services, education, universities & colleges, development & housing, international development, etc.). Presently, the charities participating represent more than $1 billion in fundraising revenue.

Promoting Compliance Compliance with the Ethical Code is being monitored through a complaints-based process. There is no accreditation process but anyone can file a complaint about an Ethical Code participant with Imagine Canada. Charities are encouraged to settle complaints directly with donors. If this is not possible, the complaint will be sent to the Ethical Code Committee.

Ethical Code Committee The Ethical Code Committee is an independent body made up of five volunteers with expertise in areas such as fundraising and financial management. The Committee is mandated by Imagine Canada to adjudicate on complaints related to the Code. They can also provide informal advice to Ethical Code Program participants.

Complaints Process After a thorough review of the complaint, the Ethical Code Committee may: – Dismiss the complaint, – Prescribe education and a timetable to achieve compliance, – Issue a warning and timetable to achieve compliance, – Remove Imagine Canada ’ s recognition of the organization as a Ethical Code Program participant, – Release the organization ’ s name publicly. Overall goal is education so removal of recognition would be a last resort.

For more information visit: Website includes a participant list, FAQs, media coverage of the program and more.