Business Ethics Profit and Non Profit Organizations

The American Future Fund American Future Fund or AFF is an organization started back in 2008. Individuals working with Mitt Romney during the 2008 bid for the Republican US Presidency pioneered it as non-profit making organization. The fund advocates conservative and free-market principles (Jacobson, 2012). The organization was established under 501(c) (4) US tax code, it is therefore allowed by law to raise an unlimited amount of money, but restricted to use this money for campaigning as its primary purpose. Ethical Problems the organization is facing For non-profit making organizations, most of their ethical issues can be summarized into seven key problems. As outlined by Santicola, (2006) these issues include tainted money, compensation, privacy, stewardship, conflict of interest, impropriety, and honesty/full disclosure. Any organization that is directly involved in politics is likely to face many ethical problems in its line of operation. AFF is not an exception, and since its inception, it has faced a number of lawsuits relating to its ethics. The main problems include the use of tainted money, compensation, the appearance of impropriety, and honesty and full disclosure.The organization also supports various positions in energy one of them is offshore drilling. In March 2008, The American Future Fund (AFF) ran a series of radio and television ads blaming Gov. Chet Culver of snowballing spending by 20 percent between 2006 and 2007 resulting to an increase in fees and taxes and fees by $100 million. The Iowa Democratic Party was convinced that AFF was using tainted money in running the ads and filed for a complaint with Iowa Ethics and Campaign Disclosure, to determine AFF’s donors. In February 2011, AFF faced another accusation by Citizens for Responsibility and Ethics in Washington (CREW), for tax violation. CREW seeks an investigation into AFF, where it has substantial evidence to question the organization’s honesty and disclosure. This suit also factors in other ethical issues that make the organization’s ethical standards questionable. Such issues include spending the organization’s money to ask voters to vote against Democrats, yet the mission of the organization is to support Republicans to office. This is an appearance of impropriety since their methods may be arguable in court, but they are ethically inappropriate. AFF is a 501(c) (4) organization under US tax code, it is allowed by law to raise an unlimited amount of money, but restricted to using this money for campaigning as its primary purpose. In a bid to counter a decision made by Citizens United Supreme Court, AFF used more than $300 million to elect the 112th Congress (CREW, 2011). This is a clear indication of compensation where the fundraisers of the organization are using donor funds for their own self-gain. With such claims directed towards the organization’s ethical standards, the organization is likely to face three major problems. First, the organization can end up being dissolved by the court if proven guilty of violating the tax code in its functions. Second, the organization ends u using many of its funds because of the various lawsuits that question its ethical standards.