Seven Ethical Challenges for Nonprofits

Tim Burchill, executive director of The Hendrickson Institute for Ethical Leadership at Winona, Minn.-based St. Mary’s University of Minnesota, says the ethical challenges that nonprofit organizations face in regards to fundraising can be broken down into seven categories.

1. Tainted money. Burchill says this category is a media favorite. While some organizations restrict who they’ll take funds from — e.g., Mothers Against Drunk Driving won’t take money from alcohol companies; American Cancer Society won’t take money from tobacco companies; etc. — many other groups don’t make such distinctions. Burchill says there is no money that is inherently bad, but each organization needs to decide for itself what qualifies as tainted money relative to its mission.