Problem:

Charity Going Concern You are the newly hired controller for a charitable organization that is in trouble. The organization Helping Hands assists disabled individuals with all aspect of looking for and getting jobs. The organization has been struggling for the entire time of your employment. You are concerned that Helping Hands can survive much longer. The recession has taken a toll on fundraising. Payroll was due and you delayed paying the utilities for as long as you could. The big problem is Helping Hands largest donor requires that he be provided quarterly financial statements for him to continue making donations. In fact, you have not provided Gerald with statements for the last two quarters. Gerald comes to see you and informs you that his accountant will not allow him to provide any more financial assistance until you provide him with financial statements. If Gerald could show his accountant that the organization was doing well he could give them this quarters check. He needs the financial statements that have been promised. You apologize that he has not received the statements yet and promise that he will have them next week.

Later, Don the executive director of Helping Hands visits your office. He realizes there is a problem but is thankful there is enough cash to get through another week. Don is sure that once you provide Gerald the promised financial statements the donations will continue. Don realizes the financials do not look that good. He suggests leaving the debt to a major vendor off the financials. Don is a golfing buddy with the vendors president and the vendor Charles has offered to give the charity an official letter immediately waiving the charities debt to his company, not permanently, but just until you get past the cash crunch. Don assures you that it will keep the charity afloat and you wouldnt be doing anything illegal. Charles is fully authorized to do this, as a goodwill gesture to a worthy cause. Don is hoping that maybe in the end Charles will actually cancel the debt. Its a possibility.

UPDATED INFO: what is the ethical issue? what are the facts? who are the stakeholders? any alternatives to solve this issue? what would be the correct decision on this issue? using the 8 step process to answer and using support from the AICPA, Explain what your options are (there are two).

The textbook and the code of ethics should give you the information you need to complete this assignment. Your paper should be of the quality you would submit to the executive director or the board, explain your decision in a factual business manner. - Recognizing Ethical Matters and making good decisions means being familiar with the professions rules and regulations from the AICPA and the state board of accountancy.

To be effective, you need to know how to analyze a matter or situation. One ethics decision making model contains 8 steps:

Step 1: Recognize the Ethical Issue the ethical issue in this situation

Step 2: Gather the Critical Facts All the facts may not be initially evident, make sure you have them all before making any decisions.

Step 3: Identify the Stakeholders Considering the alternatives who will positively benefit or negatively be harmed by your decision or actions.

Step 4: Consider Alternatives What are the various approaches that can be taken to address this matter and resolve the ethical conflict.

Step 5: Consider the Effect on Stakeholders Consider how each approach is likely to affect the stakeholder.

Step 6: Consider Your Comfort Level How comfortable are you with each option, if discussed in public, how would it reflect on your ethics.

Step 7: Consider Rules, Regulations and Laws Are the options consistent with the professional rules, regulations and laws?

Step 8: Make a Decision Once you have considered all of the above can you make a decision? Explain your decision and what the major factors in why you consider this to be the best option. Make your argument convincing.