TransparencyandAccountabilityDanielSVogelDalbyWendland&CO,P.C.GrandJunc;on,CO81501Delta–January25,2011Montrose&Gunnison–January26,2011
Principals&PracticesforNonpro7itExcellenceinColorado,SecondEditionNew2011Edi;onJustReleased• Governance&Leadership• TransparencyandAccountability• FinancialManagement• Fundraising• HumanResources• Planning• Evalua;on• Advocacy,PublicPolicy&CivicEngagement• Communica5ons(new)• Informa5onTechnology(new)• StrategicAlliances
"You'dbesurprised.Dysfunctionalfamilyfoundationsarenotuncommon."
PrincipalsofTransparencyandAccountability• Nonprofitshaveanethicalandlegalobliga5ontotheircons;tuentsandthepublictoconducttheirac;vi;esinatransparentandaccountablemanner.
• Nonprofitsshouldregularlyandopenlyconveyinforma5ontothepublicabouttheirmission,ac;vi;es,accomplishments,anddecision‐makingprocesses.
• Informa;onshouldbeeasilyaccessibletothecommunityinordertoincreaseexternalvisibilityandpublicunderstandingoftheorganiza5oninordertoul5matelybuildtrustintheorganiza5on.
QuotesFINANCIALACCOUNTABILITY• “Aclearviewintowherethedona;ons/gi]sgiventothenonprofitaredistributed,aswellastheoverallcostsofrunningthenonprofitorganiza;on.”
• “Whenworkingwithcommuni;es,communitydonorsneedtoknowwheretheirmoneyisgoing.”
• “Awillingnesstoprovideinforma;onaboutthenatureandac;vi;esofyourorganiza;on,including,butnotlimitedto,governance,finance,program,outcomemeasurestoyourfundersandthegeneralpublic.Inaddi;on,youshouldbewillingtoanswerreasonableques;onsabouttheinforma;onandbeabletoexplainthematerialtothosewhohaveaneedtoknow.”
Quotes(cont)FINANCIALACCOUNTABILITY(cont)• “Nonprofittransparencymeansthattheorganiza;on’sfinances,opera;onsandprogramsareabsolutelyethicalandopentoinspec;on.”
• “Adherencetofederalandstateregula;ons.”• “Annualfinancialaudits.”• “Timelysubmissionofrepor;ngdocuments.”• “Clearaccoun;ngmethodsandrecordkeeping.”
Quotes(cont)OPENNESSABOUTMISSIONANDPROGRAMS• “Thereisnothingtohide.Themissionisclearandorganiza;onalac;vityreflectsthat.”
• “Nonprofittransparencymeansthateverythingwedomustbeclearlyunderstoodandopentoreviewandthoughfuldiscussionbyallstakeholderstogaintheircompleteconfidenceandrespect.”
• “Thereleaseofinforma;onthatisrelevanttoevalua;ngthoseins;tu;ons.”
• “Beingtransparentwithrelevantinforma;onishownonprofitsdemonstrateaccountability.”
Quotes(cont)AHOLISTICVIEW• “IthinkoftheacronymDWYSYWD(dowhatyousayyouwilldo).Dotheac;onsoftheorganiza;onreflectthecorevaluesandmissionitpromotes?Istheregenuineevidenceoftheagency’shighregardforintegrityacrossallcoreaspectsoftheagency–fromprogramopera;onsandhiringprac;ces,toevalua;onsandcommunica;onsaswellasthefinancialprac;ces(wheremostmediaahen;ono]engravitates).Examplesofevidencemayincluderecognizingandabidingtoallapplicablestateandfederallaws,exploringappropriateaccredita;onopportuni;es,comple;ngregularannualreports/auditsandmakingthatinforma;onreadilyavailabletofunders,usingindependentresearcherstoconductprogramevalua;ons,maintainingopenlinesofcommunica;onbetweendonorsandthelike.”
Accountability&Transparency–WhatDoTheyMean?• AccountabilityandTransparencyarethekeybuzzwordsforthenonprofitsectorinthisfirstdecadeofthe21stCentury.
• Forbeherorworse,thegovernmentwillgenerallyleaveyoualoneifyouprovidepoorservice.Anddonorswillusuallyforgiveyouforbeinginefficient.However,theywilltakeyoutotaskifyouspendclientmoneyinappropriately,payyourofficerstoomuch,orforgettopaytaxescorrectlyoron;me.Mediaheadlinesaboutfinancialirregulari;es,overpaidexecu;ves,andoutrightfraudappearregularly.Whileinrealityaverysmallpercentageofnonprofitssufferfromtheseproblems,allpaythepriceofthistypeofahen;on.Inthepastfiveyearsanincreasedlevelofscru;nybygovernmenthasbeenappliedtothenonprofitsector,crea;ngnewregula;onsandincreasingthecostofcompliance.
Whoareweaccountableto?• Donors• Members(ifmembershiporganiza;on)• BoardofDirectors• GeneralPublic• Federal,StateandLocalGovernments• Clients• Lenders• LessorsofLeasedProperty• Employees• OtherNonprofitsWePartnerWith• Professional/IndustryOrganiza;ons
PracticesofTransparencyandAccountability• Accountability• AccessibilityandPublicInforma;on• Solicita;onofCommunityInput• FairnessandEquityPrac;ces• CorporateDocuments&Records
AccountabilityPractices• Repor;ngRequirements‐Anonprofitmustcomplywithalllegallyrequiredrepor;ngprocedures.
• PerformanceMeasurements–Anonprofitshouldshareitsevalua;onmethodologyandresultswiththepublic.
• IndustryStandards–Eachnonprofitshouldadheretotheestablishedindustrystandardsforthesector,subsectorandpar;cularac;vityarea(s).
ReportingRequirements• Anonprofitmustcomplywithalllegallyrequiredrepor;ngprocedures.
• Ini;allythenonprofithastoformtheirorganiza;onwiththestateandapplyfortaxexemptstatuswiththeIRS.
• AnnuallymustfileForm990/990EZ/990N(Postcard)• UnrelatedBusinessIncomemustfileForm990Tannually• QuarterlymustfileFederalandStatePayrollReportsandPayments
• Certainorganiza;onarerequiredtohaveaFinancialAuditperformed
• CharitableSolicitorsmustfileeachyearwiththeSecretaryofState.
PerformanceGoals• Anonprofitshouldshareitsevalua;onmethodologyandresultswiththepublic.
• Manynonprofitstrackclientsservedandothermeasurablewaystodeterminetheireffec;veness.Itisimportanttosharethisinforma;ontothepublic.
• Form990hassomeplaceforthisinforma;on.• ExamplefromtheWesternSlopeCenterforChildren.
IndustryStandards• Eachnonprofitshouldadheretotheestablishedindustrystandardsforthesector,subsectorandpar;cularac;vityarea(s).
• Anumberofcharitywatchdoggroups,nonprofitandfounda;onassocia;ons,professionalassocia;ons,aswellasindividualorganiza;ons,havedevelopedstandardsofprac;ceandethicalcodes.Someareorganizedbytypeoforganiza;onormissionserved,somearedevelopedfororganiza;onsofapar;cularregion,ands;llothersserveindividualsinapar;cularprofession.Theseguidelineshelpboardmembers,staffandvolunteersdemonstratetheircommitmenttoprac;cethatisresponsible,accountable,andethical,andprovidebenchmarkstodeterminehowwellanorganiza;onisfulfillingitsresponsibilitytoitscontributorsandtothegeneralpublic.
IndustryStandards(cont)• IndependentSectorhascompilednearly100suchstandards,codesandprinciplesintoonecomprehensive,web‐basedclearinghouse.Websiteiswww.independencesector.org.
• HowtheCompendiumofStandards,Codes,andPrac;cesIsOrganized:• I.PublicChari;es• II.Founda;ons• III.ProfessionalPrac;ce:StandardsforIndividuals• IV.StandardsforOnlineGiving• V.StandardsforGi]s‐in‐Kind• VI.StandardstoGuideMarke;ng/OtherRela;onshipsBetweenNonprofitsandCorpora;ons
• VII.SamplesofaDonorBillofRights• VIII.Interna;onalStandards
ColoradoNonpro7itAssociation• PartoftheNa;onalCouncilofNonprofits• TheColoradoNonprofitAssocia;on,formerlytheColoradoAssocia;onofNonprofitOrganiza;ons(CANPO),isastatewidenonprofitmembershipcoali;onconnec;ngnonprofitsofallsizes,missionsandgeographicloca;ons.
• Weleadthenonprofitsectorininfluencingpublicpolicyandpublicopinion.
• Weserveourmembersbyprovidingtoolsforcommunica;on,networkingandadministra;on.
• Westrengthenthenonprofitcommunitythroughtrainings,issuediscussionsandpublicadvocacyabouttheimportanceofthenonprofitsector.
WESTERNSLOPECENTERFORCHILDRENEARNSACCREDITATION
FROMNATIONALCHILDREN’SALLIANCENa#onalChildren’sAlliancerecognizesWesternSlopeCenterfor
Childrenforitsdeliveryofhighqualityandeffec#veservicestochildabusevic#msthrough
Accredita#on.
GrandJunc5on,CO–WesternSlopeCenterforChildrenhasbeenawardedaccredita;onbyNa;onalChildren’sAlliance(NCA)followinganextensiveapplica;onandsitereviewprocess.Astheaccredi;ngagencyforChildren’sAdvocacyCenters(CAC)acrossthecountry,NCAawardsvariouslevelsofaccredita;onandmembershiptocentersrespondingtoallega;onsofchildabuseinwaysthatareeffec;veandefficient,andputtheneedsofchildvic;msofabusefirst.Accredita;onisthehighestlevelofmembershipwithNa;onalChildren’sAllianceanddenotesexcellenceinserviceprovision.
WesternSlopeCenterforChildren,aprivatenon‐profitorganiza;on,u;lizesamul;disciplinaryteamapproachtoworkwithchildsexualabusevic;ms.TheCenterwasestablishedin1997withthemissionofprovidingcollabora;veservicestochildsexualabusevic;msandtheirnon‐offendingfamilymembersinasuppor;veenvironmentthatreducestraumaandpromotesdignity,jus;ce,andhealing.Ourvaluesarecompassion,integrityandmutualrespect.Sinceopeningin1997,WesternSlopeCenterforChildrenhasservedmorethan3,700childvic;msandtwicethatnumberofsiblings,parentsorothernon‐offendingfamilymembers.AsanAccreditedMemberofNa;onalChildren’sAlliance,WesternSlopeCenterforChildrenisdedicatedtoprovidingcomprehensive,coordinatedandcompassionateservicestovic;msofchildabuse.
NCAawardsAccreditedMembershipbasedonaCAC’scompliancewith10na;onalstandardsofaccredita;ontoensureeffec;ve,efficientandconsistentdeliveryofservicestochildabusevic;ms.AccreditedMembersofNCAmustu;lizeafunc;oningandeffec;veMul;disciplinaryTeamapproachtoworkcollabora;velyinchildabuseinves;ga;on,prosecu;on,andtreatment.NCAalsoconsidersstandardsregardingacenter’sculturalcompetencyanddiversity,forensicinterviews,vic;msupportandadvocacy,medicalevalua;on,therapeu;cinterven;on,andchildfocusedsesng.
"YourassertionthatFrankLloydWrightoncesaidyourlandhad'amillion‐dollarview'reallydoesn'thelpuswithForm8283coveringdonationsofland."
AccessibilityandPublicInformation• Interac;onwithCons;tuents–Anonprofitshouldprovideitscons;tuentswithongoingopportuni;estointeractwiththeboardandmanagementregardingitsac;vi;es.
• PublicAccesstoInforma;on–Anonprofitorganiza;onshouldmakeinforma;onaboutitsopera;ons,includingitsgovernance,finances,programs,andac;vi;es,widelyavailabletothecommunityandontheorganiza;on’swebsite.
• AnnualReports–Anonprofitshouldproduceanannualreport(inprintand/orinelectronicformat)thatcontainsinforma;ononitsac;vi;es,accomplishments,performanceandvisionforthefuture.
WhatGuideStarHastoSayaboutTransparency• www.guidestar.org• Foundedin1994• GuideStarwasfoundedtopromotenonprofittransparency,toprovideacentralrepositoryofnonprofitinforma;onthatdonorscouldusetoguidetheirgivingdecisions.Althoughbothouraudienceandthewaysinwhichwedelivernonprofitinforma;onhaveexpandedovertheyears,ourbeliefintheimportanceoftransparencyhasneverwavered.Infact,transparencyholdsakeyplaceinourmissionstatement:"Torevolu;onizephilanthropyandnonprofitprac;cebyprovidinginforma;onthatadvancestransparency,enablesuserstomakebeherdecisions,andencouragescharitablegiving."
GuideStarStateofNonpro7itTransparency,2008First,thegoodnews:• 93%ofnonprofitsareembracingtheInternettodiscloseinforma;onabouttheirprogramsandservices.
• Nearly75%oftheorganiza;onsprovidedthenamesofthepeoplewhoserveonthegoverningboardsandthekeystaffwhomanagetheirorganiza;onsandoverseethedeliveryofprogramsandservices.
Andtherestofthefindings:• 43%ofthenonprofitssurveyedpostedtheirannualreportsontheirWebsites.
• 15%postedtheirauditedfinancialstatementsontheirWebsites.
• 3%postedtheirrespec;veIRSlehersofdetermina;on.
GuideStarRecommendations• NonprofitsshouldregularlyupdatetheirWebsiteswithcurrent,detailedprogramandevalua;onsinforma;on.
• Inaddi;ontopos;ngboardmembers’andkeystaff’snamesand;tles,nonprofitsshouldpostbriefbiographicinforma;onfortheseimportantleaders.
• EverynonprofitthatproducesanannualreportshouldpostthereportonitsWebsite.
• EverynonprofitthathasanauditedfinancialstatementshouldpostitonitsWebsite.
• EverynonprofitthathasanIRSleherofdetermina;onshouldpostitonitsWebsite.
InteractionWithConstituents• Anonprofitshouldprovideitscons;tuentswithongoingopportuni;estointeractwiththeboardandmanagementregardingitsac;vi;es.
• TherearemanyCRM(Cons;tuentRela;onshipManagement)so]wareavailabletotrackandhelpyouwithyourcons;tuentinterac;ons.
PublicAccesstoInformation• Anonprofitorganiza;onshouldmakeinforma;onaboutitsopera;ons,includingitsgovernance,finances,programs,andac;vi;es,widelyavailabletothecommunityandontheorganiza;on’swebsite.Fulldisclosureofexecu;vecompensa;on,includingcompensa;onreceivedfromsubsidiaryandrelateden;;esoftheorganiza;on,mustbedisclosedontheorganiza;on’sannualinforma;onreturn.
• Ataminimum,anonprofitorganiza;on(unlessspecificallyexempted)mustmakecertaindataavailabletothepublic,including:• Form990/990EZ/990N/990PFforthepreviousthreeyears• Form990TUBITforthepreviousthreeyears• Form1023/1024Applica;onforExemptStatus,includinganypaperssubmihedinsupportoftheApplica;onandanyleherorotherdocumentissuedbytheIRSwithrespecttotheApplica;on.
"Yes,it'strue,theIRShasnoauthorityhere."
Form990• Redesignedin2008,previouslyhadnotbeensignificantlyrevisedsince1979andwasuniversallyregardedasneedingamajorrevision.
• Thenewform’ssummarypageprovidesasnapshotofkeyfinancial,governanceandopera;nginforma;on,includingacaparisonofcurrentyear’srevenues,expenses,assets,andliabili;eswiththoseoftheprioryear.
• Thereorderedcoreformprovidesadescrip;onoftheorganiza;on’sprogramserviceaccomplishmentsimmediatelya]erthesummarypage,toprovidecontextbeforetheuserproceedstosec;onsontaxcompliance,governance,compensa;on,andfinancialstatements.
Form990(cont)• TheChecklistofRequiredSchedulesalsoprovidesaquickviewofwhetherthefilingorganiza;onisconduc;ngac;vi;esthatraisetaxcomplianceconcerns,suchaslobbyingorpoli;calcampaignac;vi;es,transac;onswithinterestedpersons,andmajordisposi;onsofassets,andindicateswhichschedulestheorganiza;onisrequiredtofilewiththeform.
• “ThenewForm990isperhapsthebestexampleofourrecentworktopromotepublictrustandaccountabilityinthenonprofitarea.Thenewformisbeginningtoprovidethepublicwithricherinforma;onaboutthechari;estheycontributetoorwithwhichtheyinteract“DouglasShulman,CommissionerIRS,April2010.
Form990(cont)• “NowIwouldliketomen;onafewareaswhereIthinkorganiza;onsandtheiradvisorshaveanopportunitytobuildontrust.Oneisthroughbehertransparency.AprimarytoolinthatareaistheForm990.The990isnotjustaboutrepor;ngfinancialinforma;ontotheIRS.Becauseitispublicallydisclosed,taxexemptorganiza;onsshouldalsolookatitasapublicrela;onstool.Makesuretheformaccuratelyreflectsthegoodworkthatyourorganiza;onsaredoing.Thisisyourchancetotellyourstory.Poten;aldonorswilllooktotheformwhenmakingtheirdecisionsaboutwheretolendtheirsupport–andtheyarenottheonlyoneslookingattheform.Reportersandwatchdoggroupsalsoreviewandreportonthe990’sfiledbytax‐exemptorganiza;ons.YouneedtomaketheForm990workforyou,youdon’twantittobeusedagainstyou”LoisLerner,DirectorEO,IRSApril2009.
Form990Highlights• Page1–Snapshot• Page2–ProgramServiceDisclosures• Page5–IRSFilingsandTaxCompliance• Page6–Governance,Management,PoliciesandDisclosures• Page7–Compensa;onofOfficers,Directors,KeyEmployeesandHighestCompensatedEmployees
• Page9–RevenueBreakdown• Page10–ExpenseBreakdown• Page11–BalanceSheet• Page12–FinancialStatementsandRepor;ng
“IwonderifheeverIinishedtheannualreport?”
AnnualReports• Anonprofitshouldproduceanannualreport(inprintand/orelectronicformat)thatcontainsinforma;ononitsac;vi;es,accomplishments,performanceandvisionforthefuture.Theannualreportshouldinclude:• anexplana;onoftheorganiza;on’smission,ac;vi;es,andimpact;
• anexplana;onoftheorganiza;on’soutreacheffortsandwaysinwhichcons;tuentsmayaccesstheprogram(s).
• overallfinancialinforma;on,includingincomeandexpensestatements,balancesheet,andfunc;onalexpensealloca;on;
• alistofboardmembers,managementstaff,and,whenappropriate,contributors;and
• anevalua;ondetailingextentofaccomplishmentofstatedgoalsandothernotableaccomplishments.
TalkingtoOurselves,ACriticalLookatAnnualReportsinFoundationCommunications• Inadigitalagewhereinforma;oncanbeupdatedfromanywhereatany;me,manywonderiftheannualreportisathingofthepast.Thereportandcompanionwebsite,www.WhyAnnualReports.orgaredesignedtogettheconversa;ongoingaboutwhyfounda;onsissueannualreportsandwhethertheyares;llrelevant.Addressestheseissues:• LimitedreachwithengagedAmericans• Limitedreachwithgrantees• Lihleevalua;on• Lotsofobjec;ves,onlyonevehicle• Prac;;onercri;cisms• Valuableontheinside• Strengthenstransparency• Budgetdrain• Corporatesectorspendingless
Glasspockets
• LookedatTransparencyPrac;cesofthetop900founda;ons• Founda;onsareusingtheinternetlikeneverbeforetomaketheirinterestsandac;vi;esaccessibletothepublic.Throughtheirwebsitesandotheronlinecommunica;onsvehiclesfounda;onsareworkingtoshowtheir“glasspockets”
ElectronicAlternatives• Facebook• Twiher• YouTube• GrantsDatabase• Blog• CEPStudy• E‐Newsleher• Flickr• iTunes
• KnowledgeCenter• LinkedIn• Mul;media• MySpace• Podcasts• RSSFeed• RSSGrantsFeed• Wiki• Other
AnnieECaseyFndn RT @aecfkidscount: In '09, 63% of kids lived in houses owned by their parents, down 1.5 mil from 66% in '07. More data: http://ow.ly/3Har8 about 13 hours ago via HootSuite Utah's Deseret News highlights Casey's 2010 report - Parents play important role in child's reading: http://ow.ly/3J6wI #readingmatters about 13 hours ago via HootSuite Casey aims to turn a 31-acre parking lot into a vibrant southside neighborhood in #Atlanta http://ow.ly/3Hqwt 12:42 PM Jan 20th via HootSuite @AnnieECaseyFndn has named Lisa M. Hamilton, VP of #PR at UPS, to lead its strategic communications, policy reform and advocacy work. 11:58 AM Jan 20th via HootSuite If you're a fan of the Casey Foundation in real life, please visit us on Facebook and tell us what you think! http://ow.ly/3Den4 7:51 AM Jan 13th via HootSuite
“Ineverthoughtitpossible–myIirsttextedleadgift”
SolicitationofCommunityInput• CommunityMee;ngs–Nonprofitareencouragedtoholdpubliccommunitymee;ngstogatheranddistributeinforma;onabouttheirapproaches,goals,andeffec;venessincarryingouttheirmissions.
• WorkingwithOtherNonprofits–Nonprofitorganiza;onsshouldac;velyworkwithotherorganiza;onstoavoidduplica;onofservices,learnfromeachother,andshareresourceswhenappropriate.
CommunityMeetings• Nonprofitsareencouragedtoholdpubliccommunitymee;ngstogatheranddistributeinforma;onabouttheirapproaches,goals,andeffec;venessincarryingouttheirmissions.Boardsofdirectorsshouldalsoprovideinforma;ontothepublicthatdescribestheirdecisionsanddecision‐makingprocesses.Nonprofitsshouldmakemee;ngagendasanddescrip;onsofsignificantdecisionsavailabletothosewhorequestthem.
WorkingwithOtherNonpro7its• Nonprofitorganiza;onsshouldac;velyworkwithotherorganiza;onstoavoidduplica;onofservices,learnfromeachother,andshareresourceswhenappropriate.
• Communica;onsiskey.Nonprofitsdoingsimilarworkshouldtalkwitheachother,collaborate,findoutwhattheotherisdoing,lookforwaystodifferen;ateyourworkandnotjustcompeteforthesamescarcedollars.
• Asaresultofthecurrenteconomicclimate,theriseofcollabora;onthatexistsamongnonprofitshascon;nuedtoincreaseacrossthecountry.Nonprofitswithsimilarmissionsarelookingtoeachotherforhelptokeeporganiza;onsalive,evenifitmeanstomerge.
WorkingwithOtherNonpro7its(cont)• Therehasbeenasurgeofnewnonprofitorganiza;onsoverthepasttwentyyears.Thiswasfueledbyincreasesintheavailabilityofpublicandprivatefunding.Manyneworganiza;onsdidworksimilartoexis;ngorganiza;onsandinmanylocaleswebegantoseeaduplica;onofservicesoracompe;;ontoprovideservices.Now,withlessfundingavailable,nonprofitsmustfindthemostcosteffec;vewaytomaintainanddeliverservices–toseethatresourcesareusedinthemostbeneficialandmission‐drivenway.Overheadandadministra;vecostsaregoingtohavetobereducedsothatmoremoneyisavailableforcoreservices.Mergersareonewayofreducingthosecostsandcrea;ngleaner,moreeffec;veorganiza;ons.
WorkingwithOtherNonpro7its(cont)• Thebohomlineisthattheimportantworkofnonprofitscon;nue.Mergersareawayfornonprofitstosurvive.Whenvulnerablepopula;onsofpeoplearethebeneficiaryoftheservicesandsupports,itistheresponsibilityofthenonprofittoembracethechangetocomethroughapoten;almergerwhentheforecastlooksglum.
"Weweregoingtoapproveyourgrant,butAmericavotedagainstit."
FairnessandEquityPractices• FeesandServices–Informa;onregardingfeesandservicesshouldbemadereadilyavailabletothepublic.Whenchargingforservices,nonprofitsshouldpriceequitablyandtakeintoaccounttheconsequencesofdenialofservicesduetoanindividual’sinabilitytopay.
• NondiscriminatoryServiceandConfiden;ality–Anonprofitshouldensurenondiscriminatoryservicetoitscons;tuentsandconfiden;ality.
• CodeofEthics–Anonprofitorganiza;onshouldhaveaformallyadopted,wrihencodeofethicswithwhichallofitsboard,staff,andvolunteersadheretoinordertoensureahighlevelofintegrity.
FeesandServices• Informa;onregardingfeesandservicesshouldbemadereadilyavailabletothepublic.Whenchargingforservices,nonprofitsshouldpriceequitablyandtakeintoaccounttheconsequencesofdenialofservicesduetoanindividual’sinabilitytopay.
• Manynonprofitscountonfeesfromservicestheyoffertoclientsforpartoftheirannualincomes.Thereareseveralthingstobeawareof:
• Theac;vitygenera;ngthefeemustbeassociatedwithyourorganiza;on'smission.Ifitisnot,youmaybesubjecttotheUnrelatedBusinessIncomeTaxorUBIT.
• Thefeegenerallymustbelessthanafor‐profitbusinesswouldchargeforthesameorasimilarservice.
FeesandServices(cont)• Ratherthanchargeafee,somenonprofitshave"voluntary"dona;ons.Thisiswhenyousuggestthatauserorclientcanhelpyouprovideservicesbygivingadona;on.
• Becarefulthatyoudonotcoerceorshameanyoneintomakingadona;on.Ithastobevoluntary.
• Onewaytodothisistopostafeeschedulethatprovidesinforma;onsuchashowmuchyourserviceactuallycoststoprovide,andinvi;nguserstodonateanamountoftheirchoosing.Giverangestomakeiteasiersuchas$25‐$50dollars.
• Thereissomeevidencethatpeople,evenwhenfinanciallychallenged,liketodonatesomethingratherthantoreceivejusta"handout."Whetheryouinvitedona;onsfromclientsanduserswilldependgreatlyonthenatureofyourorganiza;onandtheserviceyouprovide.
NondiscriminatoryServiceandCon7identiality• Anonprofitshouldensurenondiscriminatoryservicetoitscons;tuentsandconfiden;ality.
• Wrihenconfiden;alityandnondiscrimina;onpoliciesareessen;altohave.
• Severalexamplesfollow,ques;onbecomeshowinclusivedoyoumakethem.
NondiscriminationPolicyExamples• TheNonprofitCenteriscommihedtoequalopportunityforallpersonswithoutregardtosex,age,race,color,religion,creed,na;onalorigin,maritalstatus,disabilityorsexualorienta;on.ItisthepolicyoftheNonprofitCentertocomplywithallfederal,stateandlocallawsandregula;onsregardingequalopportunity.Inkeepingwiththatpolicy,theNonprofitCenteriscommihedtomaintainingaworkenvironmentthatisfreeofunlawfuldiscrimina;onandharassment.Accordingly,theNonprofitCenterwillnottolerateunlawfuldiscrimina;onagainstorharassmentofanyofouremployeesorotherspresentatourfacili;esbyanyone,includinganysupervisor,co‐worker,vendor,client,orcustomeroftheNonprofitCenter.
NondiscriminationPolicyExamples(cont)• UnitedCharitablePrograms(UCP)isa501(c)(3)nonprofitorganiza;on.UCPiscommihedtoprovidinganenvironmentthatisfreefromdiscrimina;oninemploymentandopportunitybecauseofrace,color,religion,creed,na;onalorigin,ancestry,disability,gender,sexualorienta;on,orage.
NondiscriminationPolicyExamples(cont)• HeartStrongiscommihedtofairemployment/volunteerrecrui;ngprac;cesandequalemployment/volunteeropportunityregardlessofrace,color,creed,religion,na;onalorigin/ancestry,age,sex,disability,maritalstatus,personalappearance,educa;on,poli;calaffilia;on,genderiden;ty,genderexpressionorgay,lesbian,bisexualorienta;on.
Con7identialityPolicyExample• ItisthepolicyofTheNonprofitCenterthattrusteesandemployeesofTheNonprofitCentermaynotdisclose,divulge,ormakeaccessibleconfiden;alinforma;onbelongingto,orobtainedthroughtheiraffilia;onwithTheNonprofitCentertoanyperson,includingrela;ves,friends,andbusinessandprofessionalassociates,otherthantopersonswhohavealegi;mateneedforsuchinforma;onandtowhomTheNonprofitCenterhasauthorizeddisclosure.Trusteesandemployeesshalluseconfiden;alinforma;onsolelyforthepurposeofperformingservicesasatrusteeoremployeeforTheNonprofitCenter.Thispolicyisnotintendedtopreventdisclosurewheredisclosureisrequiredbylaw.
Con7identialityPolicyExample(cont)• Trustees,employees,volunteersandcontractorsmustexercisegoodjudgmentandcareatall;mestoavoidunauthorizedorimproperdisclosuresofconfiden;alinforma;on.Conversa;onsinpublicplaces,suchasrestaurants,elevators,andpublictransporta;on,shouldbelimitedtomahersthatdonotpertaintoinforma;onofasensi;veorconfiden;alnature.Inaddi;on,trusteesandemployeesshouldbesensi;vetotheriskofinadvertentdisclosureandshouldforexample,refrainfromleavingconfiden;alinforma;onondesksorotherwiseinplainviewandrefrainfromtheuseofspeakerphonestodiscussconfiden;alinforma;oniftheconversa;oncouldbeheardbyunauthorizedpersons.
Con7identialityPolicyExample(cont)• Attheendofatrustee'sterminofficeoruponthetermina;onofanemployee's,volunteer'sorcontractor'srela;onshipwithTheNonprofitCenter,employment,heorsheshallreturn,attherequestofTheNonprofitCenter,alldocuments,papers,andothermaterials,regardlessofmedium,whichmaycontainorbederivedfromconfiden;alinforma;on,inhisorherpossession.
CodeofEthics• Anonprofitorganiza;onshouldhaveaformallyadopted,wrihencodeofethicswithwhichallofitsboard,staff,andvolunteersadheretoinordertoensureahighlevelofintegrity.
• Thenonprofitcodeofconductisawrihenpolicythatsetsouttheexpecta;onsofproperbehaviorforpeopleaffiliatedwiththenonprofit.Thecodeofconductshouldencourageethicalbehavior,accountabilityandtransparencywhilediscouragingorprohibi;ngunethicalbehavior,discrimina;on,breachesofconfiden;ality,andotherundesirable,dangerous,orillegalbehavior.Eachboardandstaffmembershouldreadandsignthecodeofconducteachyear.Newstaffandvolunteersshouldbeaskedtoreadandsignthecodeofconductwhentheybeginworkandatleastonceperyeara]er.
"Hey!Thisyearlet'sfundawhiney"
CorporateDocuments&Records• DocumentReten;onandDestruc;onPolicy–Anonprofitshouldhaveawrihen,mandatorydocumentreten;onanddestruc;onpolicyorschedulewithguidelinesforhandlingalltypesofdocuments,includingelectronicfilesandvoicemail.Thepolicyshouldalsoincludebackupprocedures,archivalprocedures,andguidelinesforregularcheckupsofthereliabilityofthesystem.• Reten;onofdocumentsrelatedtolawsuitsisoneprovisionofSarbanes‐Oxleythatisapplicabletononprofits.
• CorporateRecords–Certaincorporaterecordsmustbekeptbyanonprofitincludingitsar;clesofincorpora;on,bylaws,resolu;ons,boardmee;ngminutes,recordsofac;onstakenbytheboard,accoun;ngrecords,currentlistofboardmembers,andcurrentlistofmembers(ifapplicable).