Ethics Scenario #47: Harristown Youth Athletic Association

47. Gerald is the chair of the board of the Harristown Youth Athletic Association, and he has been in a heated discussion with the executive director of the organization, Melissa, about the terms of the contract with a for-profit fundraiser the organization wishes to hire. Melissa, who is a member of the Association of Fundraising Professionals (AFP), insists that it is unethical for fundraisers to receive compensation based on a percentage of the amount they raise. Gerald sees nothing wrong with this, and thinks the fundraiser will certainly be motivated to raise much more money if there is a direct incentive to produce results. Melissa counters that this direct incentive also motivates the fundraiser to engage in unethical and deceptive practices. Gerald, an attorney, is reviewing the contract of the professional fundraising organization that Melissa has recommended. The contract specifies that the fundraiser is paid a flat fee regardless of the amount raised for the Association. Melissa has added language to the contract that specifies that in addition to not permitting the fundraiser to receive a percentage of the amount raised, the fundraiser is not permitted to pay his staff, including the telemarketers hired to actually make the calls to potential donors, a percentage based on the amount they raise individually. Gerald deletes this line from the contract, signs it on behalf of the organization, and sends the final copy to the professional fundraising organization for signature.

a. Is Gerald’s behavior ethical?