Quality Principle 8:
Development and humanitarian organisations acquire, manage and report on resources ethically and responsibly.
Quality Principle 8 recognises the importance of building trust with all stakeholders through the good management and use of resources. It includes member requirements regarding fundraising and financial management. The Compliance Indicators that relate to financial management and reporting have been developed in close consultation with the CCC to streamline current obligations wherever possible while also ensuring that requirements are clear and accommodate the diversity of ACFID Members.
Fundraising activities are often the public face of our organisations. The application of ethics in fundraising is not only a requirement but also an opportunity. It provides the means to enter into ongoing relationships of trust with donors, supporters and volunteers and, most importantly, with the beneficiaries of the funds raised. Member organisations’ commitment to the values of their organisations and the values of the Code of Conduct will be displayed through fundraising activities. It is the right of our donors to know these are upheld. Furthermore, the dignity of donors must be respected and they should be viewed as participants in the mission of our organisations.
Australia has a complex regulatory system for fundraising which differs for each state and territory. Member organisations must be aware of and comply with these legal requirements through the development of appropriate internal processes and procedures.
In relation to the fundraising aspects of this Quality Principle, the Code includes reference to the ‘ACFID Fundraising Charter’ that has been developed alongside the proposed Code. The ACFID Fundraising Charter consolidates fundraising standards for ACFID Members. It has been developed in response to ongoing discussion within the sector on how to ensure and communicate a common understanding of fundraising standards. The Fundraising Charter was drafted by ACFID through consultation workshops and with input from the Images and Messages Community of Practice.
The Code of Conduct also places significant emphasis on financial management and reporting. The need for irreproachable management and application of donated funds and transparent, easily comparable financial reporting are central to the credibility of aid and development organisations. The Compliance Indicators and Verifiers that relate to financial matters are therefore more prescriptive than for many other parts of the Code.
Quality Principle 8 is implemented through three Commitments by ACFID Members.
We source our resources ethically.
We ensure that funds and resources entrusted to us are properly controlled and managed.
We report on the acquisition and use of our resources.