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High moral standards and lawful procedures are an integral part of resource development. It is important that nonprofit organizations cultivate, obtain, and use donor gifts in ways that are ethical and legal. For instance, when an organization receives a donation for a specific purpose, it is ethically bound to spend the funds in that way. Donors expect organizations to use their gifts in ways that further the mission of the organization in an ethical and lawful manner. In addition, leaders of nonprofit organizations must be aware of and follow all laws related to gift reporting.
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