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Illegal, Unethical or Just Inappropriate?

I am president of the board of directors of a small town charity. We decide to give a$1000 scholarship to a graduating high school senior. I thought it was clear to the board that their children were ineligible. The high school counselor and I narrowed the 20 applicants down to 3. A board member's daughter applied and I excluded her. At the meeting she and some other members became upset when I did not present the daughter as a finalist. We are a non-profit. It seems wrong for board members and their children to profit. Is it illegal? Was I being "too proper"?

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  • 1 decade ago
    Favourite answer

    In this case the fact there was no specific rule or term exist under which children of the board member were mentioned as ineligible for the purpose of scholarship, this was only presumed that these board members are aware about this unwritten rule or term for the purpose of selecting eligible students for the scholarship.

    If one of the student who was daughter of one of the member of board applied for scholarship there was nothing illegal or unethical on her part or part of her parent who was member of the board.

    This one can say was inappropriate on their part as the very fact the organisation is for the purpose of small town charity.

    The people who can be covered eligible for the charity are those who are not in good financial position or who may be suffering from destitute condition. In order to provide financial help to their children to study the scholarship is being provided by the organisation.

    What you did was not wrong for excluding the daughter of one of the member for the purpose however you being President of the Board should specifically make rules or terms under which there is specific mention of the people who shall only be eligible for this privilege and also of those people who are ineligible for the same, this will avoid any such confusion in future.

    Source(s): I am a Lawyer.
  • 1 decade ago

    This is easy...there is no way you can include the children of board members in this scholarship program and make it look 100 percent clean. You did the right thing. This whole matter is a question of ethics only.

  • 1 decade ago

    I feel like the Mother is responsible b/c she knew the rules &she should have told her daughter...There are PLENTY scholarships out there you know...Her mama should have kept it real&spared her daughter the let down.

  • thelau
    Lv 7
    1 decade ago

    It's not illegal, because your organization made your own rules. Unethical and inappropriate? You betcha.

  • Anonymous
    1 decade ago

    Illegal, probably not.

    Unethical and inappropriate? Yes.

    You acted wisely.

    If your organization's bylaws do not already provide for this, you should amend them so that they do.

  • 1 decade ago

    No, you did the right thing.

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