Ethics & Professional Standards in Philanthropic Advising Flashcards
6 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 Ethics & Professional Standards in Philanthropic Advising flashcards as text
The Donor Bill of Rights establishes that donors have the right to:
Answer: Be informed of the organization's mission and how funds are used, and have their gift used as intended
The Donor Bill of Rights affirms donors' rights to information about the organization's mission, financial practices, and how their gifts are used—core transparency and stewardship obligations for all charitable organizations.
A CAP advisor discovers that a nonprofit recommended to a client is engaged in significant financial mismanagement. The advisor's ethical obligation is to:
Answer: Promptly disclose the information to the client and help them assess whether to continue their charitable relationship with the organization
The advisor's primary obligation is to their client—disclosing relevant information that could affect the client's philanthropic decisions is a core duty of loyalty and candor.
Impact washing in the philanthropic context describes:
Answer: Making exaggerated or unsubstantiated claims about philanthropic impact to attract donors without evidence
Impact washing describes organizations that make inflated or unsupported claims about their impact to attract donors—analogous to greenwashing in sustainability—without rigorous evidence to back the claims.
Under the American College's ethical guidelines, objectivity in philanthropic advising requires:
Answer: Providing advice based on an impartial analysis of facts, free from personal bias and undisclosed self-interest
Objectivity requires that advice be based on impartial analysis of the client's situation and relevant facts, free from the advisor's personal biases, undisclosed financial interests, or emotional preferences.
The ethical duty of competence for a CAP designee differs from diligence primarily in that competence refers to:
Answer: Possessing the knowledge, skill, and judgment necessary to perform professional services
Competence refers to having the necessary knowledge, skills, and judgment to deliver professional services; diligence refers to the careful, thorough application of those capabilities in a timely manner.
Which scenario would most clearly violate the CAP ethical principle of integrity?
Answer: Knowingly providing a client with inaccurate information about a charitable organization's financial health to secure the client's gift commitment
Integrity requires honesty and truthfulness in all professional dealings; providing knowingly false information to influence a client's decision is a direct violation regardless of intent or outcome.