Ethics Scenario #88: Charitable Gift Annuity Case

88. Brad and James, two colleagues, are having lunch together, and are discussing their respective charitable gift annuity programs, and efforts each is making to convince well-heeled donors in their respective communities to sign up for these. Brad is a bit loose with the tongue as a result of being on his third vodka and tonic, and mentions one particular client. James knows this client, and thinks he can offer him a much better deal than Brad’s organization. When James returns from the office, he makes a call to that donor, doesn’t mention anything about his conversation with Brad, and simply tells him about the additional tax benefits of donating to James’s organization using this vehicle compared to traditional charitable gift annuities that he might be considering elsewhere.

a. Is Brad’s behavior ethical?

b. Is James’s behavior ethical?