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.