Pledge for Excellence in Ethical Fundraising for New York State Charitable Nonprofits

Developed by The Council of Community Services of New York State, Inc.

The Board of Directors of Movement Disorders Educational Fund, Inc. DBA "WE MOVE" hereby commits this not-for-profit organization to observe and promote ethical principles and values with respect to all relationships, communications and transactions associated with charitable solicitation.

The Board of Directors, through this resolution, pledges that the organization will strive to conduct itself to act in accordance with the six ethical principles of conduct stated herein. In doing so, the Board of Directors pledges to abide the basic behavior standards associated with each ethical principle and pledges to strive toward those standards that reflect excellence in fundraising practices; when, and if, fundraising is done.

The Board of Directors recognizes that such ethical conduct is rooted in the core values of the charitable nonprofit sector and that it serves to promote the public's trust in the mission and work of the corporation and in the charitable nonprofit sector as a whole.

For the purposes of this pledge, the core values that guide the ethical decision-making and activities of charitable fundraising include truthfulness in communication; responsibility; openness; fairness; quality; public and donor accountability; respect for other nonprofits and the sector; respect for donor privacy; and respect for donor freedom of choice. The definitions contained in the Addendum of this pledge operationally apply to the following six ethical principles and 48 basic standards and 9 standards of excellence.

Ethical Principle 1# - The charity will be aware of all applicable federal, state and local laws with respect to charitable solicitation and will strive to act in accordance with the spirit, as well as the letter, of the law.

Basic Standards of Excellence:

• 1a. The board of directors will adopt written policies to govern their fundraising activities and these policies shall be in accordance with all applicable laws. (This document may be used in whole or in part as the adopted written policy)
• 1b. All independent and contractor agreements securing fundraising services shall be reviewed prior to execution by knowledgeable legal counsel.
• 1c. With respect to cause-marketing salutation efforts, both the corporate sponsor and the nonprofit must satisfy all applicable legal standards concerning consumer fraud, false advertising, and unfair trade practices.

Highest Standards of Excellence:

• 1d. Knowledgeable legal counsel shall periodically review the charity's Fund Development Plan.

Related Core Values: Responsibility; public & donor accountability

Ethical Principle 2# - The charity shall establish and exercise adequate controls over all fundraising activities conducted on its behalf and assume full accountability for such activities.

Basic Standards of Excellence:

• 2a. Agreements for the purchase of services from fundraising consultants and firms, including those being performed by other nonprofits, community groups or businesses on behalf or for the benefit of the charity, shall be in writing and shall specify provisions of the nonprofit's accountability for all activities.
• 2b. All statements and promises made in solicitation appeals will be honored or re-negotiated
• 2c. All solicitation contacts and materials with respect to charitable fundraising campaigns will inform donors when and how they may obtain information on the results of the campaign.
• 2d. Charitable fundraising campaigns shall provide accurate, complete, and timely information on the campaign results to the media and general public.

Highest Standards of Excellence:

• 2e. All terms and understandings with respect to solicitations conducted on behalf or for the benefit of the charity by businesses, community groups or other organizations that are doing so without fee from the charity are to be specified in writing and approved by the board of directors of the charity.
• 2f. A written Fund Development Plan, including all arrangements for fundraising personnel and services, shall be annually approved by the Board of Directors.
• 2g. Federated and non-federated fundraising organizations that solicit and receive donor designated funds shall inform the designated charity of the gift amount and the donor, if he/she wishes to be known, within 30 days after the gift has been posted as a liability on the books of the organization.
• 2h. Federated and non-federated fundraising organizations shall inform all designated donors within 30 days of any known delay or error made in providing the beneficiary charity with the gift. Federated and non-federated fundraiser organizations shall identify all benefiting charities and shall provide accurate, complete, and timely information (within 30 days) on the disbursement of donor funds to the media, general public, and, where applicable, to member charities

Related Core Values: Truthfulness in communication; responsibility; openness; quality; public & donor accountability; respect for other nonprofits

Ethical Principle 3# - All charitable solicitation activities, advertising, written materials, electronically and verbally disseminated information, and promotional products and services are to be accurate, reflect integrity, and be fully accountable to the public, donors, and, for federated and non-federated fundraising organizations, to their members and/or beneficiary nonprofits.

Basic Standards of Excellence:

• 3a. Representations made for solicitation purposes shall, in whole or part, have no false or deceptive terms, descriptions and claims.
• 3b. Solicitation contacts and materials will clearly identify the organization by its legal name, its philanthropic mission and how the organization can be contacted.
• 3c. Solicitation contacts and materials will, to the extent known, appropriately identify and represent the intended uses for funds being solicited.
• 3d. Requests for information that seek substantiation of the accuracy and truthfulness of solicitation activities will be honored in writing within 30 days from receipt of the request.
• 3e. Direct contact solicitations shall identify the solicitor and his/her relationship to the benefiting organization at the point of contact.
• 3f. Emotive appeals will not distort the charity's activities, nor the needs or best interests of beneficiaries.
• 3g. The confidentiality and rights of patients or clients will not be compromised or diminished in any way for promotional reasons or the self-interest of the organization in any way.
• 3h. Chain letter appeals of any kind, either written or electronically disseminated, will not be endorsed or used by the charity.
• 3i. Solicitations which, in exchange for a contribution, offer premiums or incentives shall advise the donor of the fair market value of the premium or incentive and that the value is not deductible for tax purposes.
• 3j. Advertisements for commercial products using the name or logo of the charity will disclose whether the charity has endorsed the product or not.
• 3k. Advertisements for commercial products that use the name or logo of the charity shall disclose that the commercial sponsor has paid for the use of the charity's name and/or logo.
• 3l. Advertisements for commercial products using the name or logo of the charity will avoid express or implied claims that the product is superior, unless the claim is true and substantiated.
• 3m. Advertisements shall not mislead the public about the effect of consumer's purchasing decision on charitable contributions.
• 3n. Solicitations by federated and non-federated fundraisers shall not mislead nor distort its relationship, funding or otherwise, with participating or potential beneficiaries including other charities.
• 3o. Federated and non-federated fundraising organizations shall clearly state on all written and electronically disseminated solicitation material that contributions which are not specifically designated to a particular charity represent a donation to the fundraising organization that, at the discretion of that organization, may or may not be disbursed in whole or part to another charity.

Highest Standards of Excellence:

• 3o. Written substantiation shall exist for all representations and claims made with respect to, but not limited to, community needs and/or accountability matters.
• 3p. A charity that sponsors e-commerce solicitations involving referrals to electronic shopping malls and/or the purchasing of products or services from a commercial, for- profit entity shall fully informed prospective donors on the charities web site of the terms and conditions of the agreement between the charity and the entity.
• 3r. Commercial web sites that solicits donations for a charity, including through the sale of commercial products or services, shall encourage the prospective donor to become informed about that charity and shall provide information as how the charity can be contacted, including a direct link to the charities web site (if applicable).

Related Core Values: Truthfulness in communication; openness; fairness; quality; public and donor accountability

Ethical Principle 4# - All charitable solicitations are to be based on and motivated by the mission, merits and resource needs of the requesting charity or, in the case of federated and non-federated fundraising organizations, those of beneficiary charities.

Basic Standards of Excellence:

• 4a. Solicitations shall include information on the program activities of the charity as well as the cause or needs that the charity is intending to address.
• 4b. Solicitations shall provide prospective donors with the opportunity to receive or obtain information on the charity's programs and activities, including its annual report.
• 4c. Solicitations will not deliberately obstruct the legally compliant solicitation of other charities.
• 4d. Solicitations will not engage in negative advertisements or campaigning.
• 4e. Solicitors shall not make express or implied claims that the charity's services or activities are superior to that of another charity unless the claim is true and substantiated.
• 4f. Solicitations will be free from coercion, undue influence, and/or excessive pressure, including harassment and retaliation of any form.
• 4g. Fundraising personnel, including independent contractors, shall not receive finder's fees or be compensated based on a percentage of the amount raised or other commission or formula.
• 4h. Board members their family members or the organization they work for shall not receive any form of compensation for solicitation activities performed, with the exception of legitimate expense reimbursements made in accordance with written board-approved policy.
• 4i. A federated or non-federated fundraising organization serving as a campaign manager will not intentionally use its role to assert its self or corporate interest over the interests of other participating and/or beneficiary charities, including members.

Related Core Values: Truthfulness in communication; responsibility; fairness; public & donor accountability; respect for other nonprofits; respect for donor freedom of choice

Ethical Principle 5# - The privacy and interests of individual donors will be respected and that information about a donor that he/she would reasonably expect to be private will be safeguarded.

Basic Standards of Excellence:

• 5a. The board of directors will adopt a written donor privacy policy that states what personal information about the donor that he/she can expect to be safeguarded.
• 5b. Prospective donors shall be informed upon solicitation that a donor privacy policy exists and provided information has how to access that policy.
• 5c. The donor privacy policy should be accessible on the charity's web site.
• 5d. Donors will have clearly stated opportunities to remain anonymous with respect to their name, gift amount, or other personal information being released to sources and in ways not otherwise required by law.
• 5e. Written permission will be received from individual donors before their names, addresses, and telephone numbers are included in any donor-specified mailing lists that are sold, rented, or exchanged.
• 5f. Donations will not be solicited or encouraged by the charity when the charity has reason to believe that the acceptance of the gift would jeopardize the donor's future well being.
• 5g. E-commerce solicitations will provide a clearly stated option for the individual to "opt-in" to receive future information on and/or solicitations from the charity and for identifying information to be shared or used by other parties.
• 5h. Donor and prospective donor requests to curtail informational and/or solicitations from "in-house" lists will be honored.
• 5i. Users of the charity's web sites will be fully informed if the site is dispensing a "cookie" that tracks where users go and what type of information they prefer.
• 5j. Web servers providing e-commerce solicitations via credit card shall have encryption capability and this capability is to be fully explained to the donor.
• 5k. Federated fundraising organizations shall provide designated donors with a clearly stated option to not have their identity revealed to the beneficiary charity.
• 5l. Written policies will be established by the board that govern the receipt and treatment of charitable gifts.
• 5m. The board of directors will adopt and make available to donors the "Donor Bill of Rights" as endorsed by Independent Sector, the National Catholic Development Conference, the National Committee on Planned Giving, the National Council for Resource Development, and the United Way of America.

Highest Standards of Excellence:

• 5n. The Board of Directors shall have its privacy policy reviewed annually by knowledgeable legal counsel.

Related Core Values: Openness; respect for donor privacy; respect for donor freedom of choice

Ethical Principle 6# - Administrative and fundraising expenses are be fair, reasonable, documented, and disclosed to ensure that the maximum level of resources are devoted to the mission-based purposes of the charity.

Basic Standards of Excellence:

• 6a. For charities with budgets over $100,000, the total of fundraising and administrative expenses together, shall not exceed 25% of the total operating income on average over a three-year period as determined under Generally Accepted Accounting Principles.
• 6b. For charities with budgets under $100,000, the total of fundraising and administrative expenses together, shall not exceed 49% of the total operating income on average over a three-year period as determined under Generally Accepted Accounting Principles.
• 6c. Telemarketing firms soliciting funds on behalf of a charity shall immediately disclose upon request of the potential donor being solicited the all terms, commissions and/ or fees that the firm is to receive from the charity.
• 6d. Federated and non-federated fundraising organizations shall disclose on all written and electronically produced solicitation materials the percentage of administrative and fundraising funds that the organization retains from the proceeds raised for its own use.

Related Core Values: Responsibility; openness; public & donor accountability

Addendum A

Glossary of Terms

Charitable Fundraising - a request for donor or contributor money, property, or other material goods of value made on the representation that the resources will be use for a philanthropic purpose. Requests may be made directly to the donor or to third parties who have raised or manage donor dollars, such as foundations and federated fundraisers.

Charitable Fundraising Campaign - organized charitable fundraising that has a specifically stated fundraising goal and timeframe, and provides representation as such to the potential donor.

Designated Donor - a donor to a federated fundraising organization who appropriately instructs that organization to provide his or her gift directly to a charity named by the donor.

Direct Contact Solicitation - a where fundraising solicitation is made through person-to-person interaction with potential donors.

Donor - an individual or corporation who makes a gift of money, property or other material goods of value directly to a charity.

Ethical Principles - a level of moral conduct that is rooted in stated core values and serves to guide the interactions of a nonprofit organization with others in conducting charitable fundraising.

Federated Fundraising Organization - a charitable nonprofit that solicits, collects and disburses funds specifically and representatively on the behalf, and for the support, of "member" charitable nonprofits who have corporate rights as identified and described in the organization's bylaws.

Non-federated Fundraising Organization - a charitable nonprofit that solicits, collects and disburses funds specifically for the support of charitable activities conducted by nonprofits who have no corporate and representational rights as members of the organization.

Negative Campaigning - activities that intentionally or unintentionally serve to promote the merits or fundraising interests of a sponsoring charity by attacking or criticizing other charitable organizations in an unfair, untruthful or degrading manner. Such activities may or may not be based on or rely on rumor or innuendo; unflattering and demeaning representations; stereotyping and appeals to fear, prejudice; and/or negativism.

Public Accountability - the extent to which a charitable nonprofit is accessible and responsive to public and donor inquiry for reliable and valid information with respect to its operations and is proactive in providing such information to the general public.

Standards - measures for assessing organizational conduct with respect to stated ethical principles.

Workplace Campaign - a charitable fundraising campaign that occurs at the workplace setting, has the endorsement and cooperation of the employer and/or employees, and specifically solicits contributions from employees, usually through payroll deduction.