Ethics Scenario #44: Harristown Early Music Consort

44. Rose is a professional singer, who organized the Harristown Early Music Consort consisting of herself, a recorder player, and a lute player. For several years, they have performed in coffee houses, schools, and arts festivals, mostly for minimal pay (if any) and being fed. Lately, word of their talent has spread, and they are beginning to receive more offers for their performances, some of which pay quite well. Rose has decided to create a nonprofit organization, mostly to avoid liability exposure, and also for tax reasons. The board of the new organization consists of herself, the recorder player and the lute player. For each performance, she asks the organization hiring the group to make a check out to the “Early Music Consort,” which is deposited into the consort’s checking account. Then, after paying for any out-of-pocket costs related to the performance, such as travel, food, and insurance, she divides up the remainder equally, writing a check for that amount to each of the three members.

a. Is Rose being ethical?