DEVELOPING A CODE OF ETHICS FOR NON PROFIT AGENCIES ...

DEVELOPING A CODE OF ETHICS
FOR NON PROFIT AGENCIES
Before You Begin
Ensure participation of Board and staff in developing the
Code:
• Ad hoc or standing committee
• Formal and informal employee input
• Staff officer with assigned responsibility for Code
development, implementation and enforcement
Step One
Identify the issues you need to address:
• Review existing documents in your organization
• Solicit suggestions from Board and staff members about
topics needing policy guidance
• Review sample codes from other organizations (see
www.independentsector.org/issues/accountability/standards.html)
for examples from a wide range of organizations
• Talk with colleagues in similar agencies
• Some common topics to consider:
• Conflict of Interest
• Meals, Gifts and Entertainment
• Use of Agency Resources
• Confidentiality and Privacy
• Financial Reporting and Disclosure
• Equal Opportunity and Diversity
• Sexual Harassment
• Fund Raising and Donor Relationships
• Legal and Regulatory Compliance
• Workplace Safety
Step Two
Outline the Key Components
• Determine the style and scope (simple summary
document, detailed polices with examples, “Q&A,”
printed brochure or photocopied document, etc.)
• Preamble or Letter from Board Chair/Executive Director
(why the Code)
• Link as appropriate to Vision, Mission and Values
• Role Responsibilities: Board’s Role, Management Role,
Employee Responsibility
• Specific Topics (see list from Step One)
• Where to Turn for Help (guidance for employees)
• Signature Acknowledging Receipt and Understanding
Prepared by Dr. Michael Rion, Resources for Ethics and Management, www.rionethics.com

Developing a Code of Ethics
For Non Profit Agencies page 2
Step Three
Draft the Details of the Code
• Draft the specific policies and the other components listed in
Step Two, relying on your own ideas, those of Board
members and staff, and examples from other organizations
Step Four
Test the Draft for Clarity and Alignment
• Seek feedback on the draft document from Board and staff
• Revise and refine as needed based on feedback
Step Five
Adopt and Circulate the Code
• Adopt the Code formally through Board action
• Ensure that every staff and Board member receives a copy
• Schedule information sessions as needed to introduce the
Code to all staff, with opportunity for questions
Step Six
Keep the Code Alive
• Pay attention to feedback, questions, or unanticipated issues
that arise
• Periodically assess the adequacy and up-to-date relevance of
all sections of the Code, then revise as necessary
• Regularly remind staff and Board of the Code and its main
points
Additional Resources:
Conducting an Ethics Audit (Colorado Association of NonProfit Organizations, 1994)
Ethics and the Nation’s Voluntary and Philanthropic Community: Obedience to the
Unenforceable (Independent Sector: 1991)
How to Manage Conflicts of Interest: A Guide for Nonprofit Boards (Washington, DC: National
Center for Non Profit Boards, 1995).
Responsible Family Philanthropy: A Resource Book on Ethical Decision Making for Family
Foundations by Michael Rion (Council on Foundations, 1998)
www.compasspoint.org
www.jiethics.org
www.globalethics.org
Compass Point Nonprofit Services (publishes informative email
newsletter “Board Café”)
Josephson Institute of Ethics with many helpful links
Institute for Global Ethics with many helpful links and weekly update on
ethics in the news in all sectors of society
Developed by Dr. Michael Rion, Resources for Ethics and Management, www.rionethics.com