The nonprofit ethical considerations associated with these two dilemmas are conflict of interest and outside compensation. Conflict of interest is when the organization tries to avoid a decision that would give private benefit to board members or their relatives. In option A, the donor will make a 250K gift to the organization; however, the organization needs to benefit the donor by hiring his sister for a specific job. In this case, it is conflict of interest because the donor is trying to get the private benefit. As for outside compensation, it is when there are policies addressing what to do with external payments. In option B, the donor promises to make a transformational gift; however, the donor wants to fund something that does not relate to the organization’s mission. Obviously, the donor wants to make the organization’s decision on where to fund the external payment to, which is outside compensation.
There are three ethical approaches, which are principle-based, utilitarian, and virtue and intuition. Principle-based focus on the idea of obligation or duty; therefore, it makes judgments based on the morality of an action. For utilitarian, it believes that the actions are right if they are benefi...
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...own interest and not the organization’s interest. In this case, I should not let my cultural values affect my decision; therefore, I need to look at the big picture and base my opinion on everyone’s culture in the organization. In addition, this decision will impact my organization’s revenue and it can harm the organization I make one wrong decision. I want to make sure that the donation will benefit the organization and also follow the guidance. Everyone decides to join the organization because they have the same beliefs and they believe that their time and effort is to donate to that specific mission in the organization. Furthermore, we should not let anything affect the organization and know the importance when it comes to decision-making. The decision-making will only focus on the organization’s mission and nothing else that is towards our individual’s interest.
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