Ethics Scenario #118: Fund for the Preservation of Historic Rileyville

118. Alma is the Executive Director of the Fund for the Preservation of Historic Rileyville, a nonprofit, 501(c)(3) tax-exempt organization whose mission is to advocate for maintaining the downtown area of Rileyville as close to how it looked in the 1950s, and resist attempts to bring in fast food restaurants and other businesses, including adult book stores, that might change the character of the downtown, particularly Main Street. The accountant who audits the organization recently died, and the board is looking for a replacement who will not charge the organization much. Alma suggests that the Board engage the services of her uncle, Bill, who is a retired CPA, and would likely do the audit for the organization for free as a favor. The board gratefully accepts this offer.

a. Is Alma acting ethically by making this offer?

b. Is the board acting ethically by accepting this offer?

c. Is Bill acting ethically by agreeing to audit the organization?