Associated Charities Trust, a charitable organization in Brandon, Manitoba, has a standing agreement with Prairie Bank. The agreement allows Associated Charities Trust to overdraw its cash balance at the bank when donations are running low. In the past, Associated Charities Trust managed funds wisely and rarely used this privilege. Greg Glowa has recently become the president of Associated Charities Trust. To expand operations, Glowa is acquiring office equipment and spending large amounts for fundraising. During his presidency, Associated Charities Trust has maintained a negative bank balance (a credit Cash balance) of approximately $28,000.
Required
What is the ethical issue in this situation? State why you approve or disapprove of Glowa's management of Associated Charities Trust's funds.