Ethics Scenario #107: Harristown United Way

107. Barbara is hired as the new executive director of the Harristown United Way, a nonprofit, 501(c)(3) tax-exempt organization. As is typical in Harristown whenever a new executive director is hired, the salary negotiation includes an understanding that the executive director will be making a $20,000 “leadership gift” to the United Way, serving as an example to other staff (and members of the community, as well), and the amount of salary is at a level to accommodate this expected gift.

a. Is the organization acting ethically when it “requires” this donation?