The paper "Managing the Non-Profit Organization" is a wonderful example of an assignment on marketing. There are several ethical issues facing not for profit organization today. In economic circumstances that are uncertain, the nonprofit organization goes through an increase of unethical issues that are similar to what goes on in profit-making organizations. However, there are some ethical issues that perpetually nonprofit organizations face that result in financial abuse and fraud. Misconduct in nonprofits occasions a dip in public confidence which later affects the organization's capacity for funding. One of the areas that raise ethical concerns is salaries and perks (Landskroner 118).
It is normal and generally acceptable for CEOs in the private sector to earn inflated salaries, nevertheless, it raises ethical concerns when a nonprofit leader earns a very high salary when the organization is underfunded. Large travel budgets and perks extended to nonprofit workers and board members more often than not raise issues about the ethics of such generous compensation when the social needs of the organization have not been met. Another issue is accountability. Nonprofit organizations are given some tax incentives and are not burdened oversight checks and balances on funds’ spending (Hartigan 17).
Many not for profit organizations have no effective strategic plans that can ensure the funding is used in the best manner possible. Consequently, some programs are not as successful as compared to when the organization applied more diligence to its budgeting practices. Conflicts of interest are another area of concern. When the board members use their position for their own personal gain, there is a conflict of interest. This puts the nonprofit organizations at a very tenuous position.
Offering lucrative contracts or preferential treatment to major donors brings about conflict of interest in many not for profit organizations. Absence of transparency is a common feature in not for profit organizations that permit them to cover up services and contracts provided to those with personal relationships held by officers of the not for profit organizations, family members and their employees (Sundstrom 36). There are also cases of fraud in not for profit organizations. Not for profit organizations majorly do not have the budget that requires an external auditor to review their funds on a regular basis that brings about the absence of foresight to arrest abuse of funds and financial fraud. When the board or internal accounting department is in charge of auditing of books without external assistance, it is very easy to overlook or change numbers fraudulently in support of ongoing negligence or theft of funds (Drucker 87).
Tax evasion is a common ethical issue facing not for profit organizations. Some not for profit organizations use their status to advance political issues, act in a manner that is contrary to their mission and conceal unrelated business profit in their returns.