Accountability and Integrity for Nonprofits: Nonprofit Law Trends

Here are some highlights from Flo Green’s presentation on Accountability and Integrity for Nonprofits at the recent CAN Conference:

  • The political environment is changing:
    • More accountability.
    • More investigations.
    • More penalties.
  • Public trust is declining:
    • Charities waste a great deal or fair amount of money – 66%.
    • Charities do a very good job of helping people – 29%.
    • Public wants charities to show that they are producing real, tangible and measurable results with which the public can identify.
  • Board governance must be more active:
    • Board members must understand their roles and how to carry them out (including how to read financial reports).
    • Boards must set the ethical tone for their organizations.
    • Board must actively protect against fraud.
  • Fundraising must be more open and transparent:
    • Organizations must comply with the rules and regulations.
    • Organizations must provide more information to donors.
    • Organizations must use gifts as the donors intended.
    • Organizations must be sensitive to the fact that many members of the public and many of our political leaders believe that abuse is widespread.
  • Steps to take for greater accountability and integrity:
    • Comply with all applicable laws.
    • Define your organization’s values and principles.
    • Increase the organization’s visibility and transparency.
    • Have a whistleblower policy in place.
    • Ensure that nobody has special influence over the organization.
    • Ensure that the board members do not breach their responsibilities.
    • Have a conflict of interest policy applicable to board and staff members.
    • Make ethics and accountability part of your everyday conversations.