Transparency and Accountability · New 2011 Edion Just Released • Governance & Leadership • Transparency and Accountability • Financial Management • Fundraising • Human

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).