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
A CAP advisor working with both a major donor client and a nonprofit organization as advisory clients must manage which primary ethical tension?
Answer: Dual loyalty conflict—obligations to the donor client may conflict with obligations to the nonprofit client when they interact
When an advisor serves both a donor and a nonprofit that may receive funds from that donor, conflicting obligations of loyalty arise—the advisor cannot fully advocate for both parties in the same transaction.
The principle of stewardship in philanthropic advising means:
Answer: The advisor's responsibility to manage client philanthropic relationships and resources wisely, in alignment with the client's values and long-term goals
For CAP advisors, stewardship means the ongoing responsibility to manage client philanthropic planning relationships and resources carefully, ensuring decisions remain aligned with the client's values, goals, and financial capacity over time.
When a CAP advisor becomes aware that a client's planned gift may be used by a nonprofit in ways that conflict with the client's stated values, the advisor should:
Answer: Proactively advise the client of the concern, ensure they have full information, and respect their decision after informed deliberation
The advisor's duty includes ensuring the client has complete and accurate information relevant to their philanthropic decisions—including potential conflicts with their own values—before completing any transaction.
Which action would most likely constitute a professional boundary violation for a CAP advisor?
Answer: Accepting a significant personal gift from a client in exchange for philanthropic planning services rendered without charge
Accepting a significant personal gift in lieu of professional fees blurs the professional-personal boundary, creates potential conflicts of interest, and may compromise the independence of future advice.
The prudent expert standard applied to CAP designees means:
Answer: Advisors are held to the knowledge and skill standard of a similarly situated professional with relevant expertise, not merely a reasonable layperson
Professionals holding themselves out as experts—like CAP designees—are held to a higher standard than the ordinary reasonable person: what a similarly situated expert would know and do.
Which of the following best reflects the CAP program's integrated approach to philanthropic advising?
Answer: Integrating the donor's values, financial capacity, family dynamics, and philanthropic strategy into a holistic plan that serves both the donor and charitable beneficiaries
The CAP designation is built on an integrated model that addresses the whole donor—financial capacity, personal values, family philanthropy, and strategic intent—to create giving plans that are personally meaningful, financially sound, and impactful.