Accountability of Non-Profits - Diocese of the West

The following statements are taken from a white paper (April 2005, Blackbaud, Inc ) on accountability for non-profit organizations:

Accountability is all about being answerable to those who have invested trust, faith and money in (your parish). Nonprofits must be accountable to multiple stakeholders, including private and institutional donors; local, state, and federal agencies; volunteers; program recipients; and the public at large.

There are three components to accountability - financial and regulatory compliance, stewardship, and donor trust. To establish accountability across an organization, every department must both comply with nonprofit financial standards and demonstrate to key stakeholders that it has put in place the system and oversight needed to manage funds. When problems arise, nonprofits need to acknowledge them, fix them, and move on.

While the U.S. Senate is looking at legislative options to strengthen nonprofit accountability, states have not been sitting on the sidelines. Most notably, California's Nonprofit Integrity Act imposes new financial requirements on nonprofits, including that audits be available to the public and that each nonprofit "establish and exercise control over its fundraising activities conducted for its benefit, including approval of all contracts and agreements."

To translate accountability principles into action, nonprofits have to translate these principles into actionable items.

Establish an audit committee.

Ensuring auditor communication with the board

Defining organizational policies and monitoring compliance

Reporting finances

Establishing Internal Controls

Providing for whistle blowers

Public disclosure

Internal Control Practices for Every Church - A Quiz (click here)

Diocesan Treasurer's Information: Non-Profit Accountability

Diocesan Treasurer's Information:
Non-Profit Accountability