Professional Standards & Ethics Flashcards
7 cards from real CED practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Professional Standards & Ethics flashcards as text
Under the Sarbanes-Oxley Act provisions that apply to nonprofits, which of the following is required of all tax-exempt organizations?
Answer: Whistleblower protection policies and document retention policies
SOX requires all organizations, including nonprofits, to have whistleblower protections and document retention policies to prevent retaliation and destruction of records.
A staff member reports suspected elder abuse involving a client to the ED. The ED's first obligation is to:
Answer: Report to the appropriate state agency as required by mandatory reporting laws
Mandatory reporting laws require designated professionals to report suspected abuse to state authorities immediately, overriding internal processes.
An executive director who serves on the board of a for-profit company that provides services to their nonprofit has what type of conflict?
Answer: Actual conflict of interest
Serving on a board of a vendor while directing purchasing decisions for the nonprofit is an actual conflict of interest requiring formal disclosure and recusal.
Which ethical framework focuses on an action's outcomes and maximizing overall benefit when applied to nonprofit decision-making?
Answer: Consequentialism (Utilitarianism)
Consequentialism evaluates the morality of decisions based on their outcomes, focusing on producing the greatest good for the greatest number.
A donor stipulates that their gift must be used for a program the organization has since discontinued. The ED's ethical obligation is to:
Answer: Contact the donor to discuss alternative uses or return the gift
Restricted gift ethics require honoring donor intent, which means engaging the donor when circumstances change rather than unilaterally redirecting funds.
What is the primary purpose of an organizational code of ethics for a nonprofit?
Answer: To provide a framework for decision-making aligned with organizational values
A code of ethics serves as an internal guide that aligns decision-making with the organization's core values and stakeholder expectations.
An ED is asked by a board member to hire the board member's unqualified relative for an open position. The ED should:
Answer: Refuse and report the request to the board chair or governance committee
Nepotism requests from board members violate conflict-of-interest standards and must be reported through proper governance channels.