It is vitally important we serve our donors and our organizations while conducting ourselves in the best possible way, living up to the highest ethical standards. It is important because our donors must trust that we are assisting them in fulfilling their philanthropic interests and desires while balancing that with the needs of our organizations. Living up to a code of ethics can help us earn and build trust with our donors and our organizations. For that reason, the NAD Planned Giving & Trust Services Standing Committee recently approved an update to the NAD PGTS Code of Ethics.
Certification Requirement
In addition, affirming this Code of ethics is now a requirement for initial and ongoing PGTS Certification. Starting in 2024, all PGTS Certified personnel must affirm the PGTS Code of Ethics on an annual basis. This will be done through the PGTS Portal and will be part of the CPE reporting process.
The Code is available on the PGTS Staff Web Page and will also be included in the PGTS Manual, which is currently being updated and is anticipated to be made public in 2024.
Living Document
The subject of ethics covers a vast number of issues, situations, and types of relationships. It is a complicated subject that cannot be adequately covered in any human code. One could argue that the Bible is all about ethics, and how we are to act ethically with God and our brothers and sisters in humanity, and even that is incomplete as we will be learning more and more throughout all eternity.
Throughout the Code of Ethics approval process, additional questions and thoughts were discussed that did not make it into the approved document. But in the end, the updated Code of Ethics was approved because the Standing Committee recognized that it is a living document. And even though it is not a perfect document, it was an improvement upon the previous Code, and they had faith that future committees would continue to improve the document.
Accountability
The committee tasked with drafting the updated Code of Ethics set out to include everyone involved in the gift giving process, including, but not limited to, those of us who actively work in PGTS and others who support PGTS in our organizations, as well as allied professionals such as lawyers, tax advisors, and financial planners. This begs the question of how can we hold the allied professionals who are part of the gift giving process, but are not employed by the Seventh-day Adventist Church accountable to this Code of Ethics?
The answer to this question is found in the principle of accountability. The PGTS Code of Ethics is what we must hold ourselves accountable to and what we will hold others we are working with accountable to as well. Before we can hold someone accountable, we must set expectations, and we do this by sharing with them this Code of Ethics. The allied professionals need not sign anything or even indicate they affirm this Code of Ethics, but we do owe it to these professionals to let them know if they were to do anything to violate the Code of Ethics, we would most likely not work with them again in the future.
Therefore, it is recommended that we share this Code of Ethics with our allied professionals, as well as our donors too. Setting expectations with those we serve will help build trust and give donors the opportunity to help keep us accountable as well.
Complexity of Issues
The Code of Ethics recognizes that gift planning can be quite complex and must be done in a way to properly balance the many interests and concerns involved. Everyone involved in the process should conduct themselves to achieve the best possible outcomes for the donor and the organization they are supporting. One of the principles of ethical action is that everyone’s needs be considered, and no one is harmed. This Code attempts to balance the needs of donors, church entities, and the allied professionals who assist in the gift giving process.
Code of Ethics
Here then, is the updated PGTS Code of Ethics. We welcome your thoughts, concerns, and questions and invite you to share these by emailing [email protected].
North American Division Planned Giving & Trust Services –
Code of Ethics for the Charitable Gift Planner
PREAMBLE
The purpose of this Code of Ethics is to encourage ethical gift planning and administration grounded in Biblical principles by all individuals involved in the Planned Giving & Trust Services (PGTS) process, such as gift planning representatives, trust officers, treasurers, fundraising consultants, attorneys, accountants, and other financial services professionals (collectively referred to hereafter as “Gift Planners”), and by the institutions that these persons represent. This statement recognizes that the solicitation, planning and administration of a charitable gift is a complex process involving philanthropic, personal, financial, and tax considerations, and as such, often involves professionals from various disciplines whose goals should include working together to structure a gift that achieves a fair and proper balance between the interests of the donor and the purposes of the charitable institution.
- PUBLIC TRUST
Church employed personnel should subscribe to the principles and code of ethics set forth in the Bible and the Spirit of Prophecy. All Gift Planners shall, in all dealings with donors, institutions and other professionals, act with fairness, honesty, integrity and openness. They shall have no vested interest in the gift planning process that could result in personal gain except for compensation received for services.
- PRIMACY OF PHILANTHROPIC MOTIVATION
The Gift Planner’s responsibility is to assure that philanthropic motivation exists on the part of the donor to support the mission of the Seventh-day Adventist organization they represent and other charitable organizations.
- ORGANIZATOINAL SUPPORT
Personnel should subscribe to and support the mission of the organization they represent.
- CONSULTATION WITH INDEPENDENT ADVISORS
A Gift Planner acting on behalf of a charity shall in all cases strongly encourage the donor to discuss the proposed gift with competent independent legal and tax advisors of the donor’s choice.
- EXPLANATION OF TAX IMPLICATIONS
Governments have provided tax incentives for charitable giving, and the emphasis in this statement on philanthropic motivation in no way minimizes the necessity and appropriateness of a full and accurate explanation by the Gift Planner of those incentives and their implications.
- DESCRIPTION AND REPRESENTATION OF GIFT
The Gift Planner shall make every effort to assure that the donor receives a full description and an accurate representation of all aspects of any proposed charitable gift plan. The consequences for the charity, the donor and, where applicable, the donor’s family, should be apparent, and the assumptions underlying any financial illustrations should be realistic.
- FULL DISCLOSURE
It is essential to the gift planning process that the role and relationships of all parties involved be fully disclosed to the donor. A Gift Planner shall not act or purport to act as a representative of any charity without the express knowledge and approval of the charity, and shall not, while employed by the charity, act or purport to act as a representative of the donor, without the express consent of both the charity and the donor. The gift planner should always be ready to disclose how and by whom they are compensated at the donor’s request.
- FULL COMPLIANCE
A Gift Planner shall fully comply with both the letter and spirit of all applicable federal and state laws, regulations, professional standards, North American Division Working Policy and PGTS Standards, and shall encourage other parties in the gift planning process to do so as well.
- TOTAL ACCOUNTABILITY
Gift Planners should strive to be accountable to God, their donors and the organizations they represent in every aspect of managing their time and organizational resources in fulfilling their duties.
- COMPENSATION
Compensation paid to Gift Planners shall be reasonable and proportionate to the services provided. Payment of finder’s fees, commissions or other fees by a donee organization to an independent Gift Planner as a condition for the delivery of a gift are never appropriate. Likewise, commission-based compensation for Gift Planners who are employed by a charitable institution is never appropriate.
- CERTIFICATION COMPETENCE AND PROFESSIONALISM
The Gift Planner must obtain and maintain any required certifications or licenses for their profession. They should also strive to achieve and maintain a high degree of competence in his or her chosen area and shall assist donors only in areas in which she or he is either certified or licensed, and professionally qualified. It is a hallmark of professionalism for Gift Planners that they realize when they have reached the limits of their knowledge and expertise, and as a result, should include other professionals in the process. Such relationships should be characterized by Christian courtesy and mutual respect.
- EXEMPLIFYING PRINCIPLES
Gift Planners should educate their constituency about PGTS, after first applying and exemplifying the principles in their own lives.
This code of ethics is based in part on The Model Standards of Practice for the Charitable Gift Planner adopted by the National Committee on Planned Giving (now the National Association of Charitable Gift Planners) and the American Council on Gift Annuities, May 7, 1991. Revised April 1999.