September 1, 2005 | Read Time: 1 minute
In an effort to help the charitable world do a better job of regulating itself, Independent Sector, a Washington coalition of charities and foundations, has created a nine-item “Checklist for Accountability.”
The checklist calls on nonprofit groups to:
- Develop a culture of accountability and transparency.
- Adopt a statement of values and a code of ethics.
- Adopt a conflict-of-interest policy.
- Be transparent.
- Conduct independent financial reviews, particularly audits.
- Establish a “whistleblower-protection policy” for reporting suspected misconduct or malfeasance.
- Ensure that the board of directors understands and can fulfill its financial responsibilities.
- Ensure the accuracy of and make public organizations’ informational tax returns.
- Keep up with any changes in the laws that govern nonprofit groups.
Diana Aviv, the chief executive officer of Independent Sector, said the checklist is designed to supplement other tools already available from the coalition. Independent Sector also plans to provide additional guidance and sample policies for charities.
Trent Stamp, executive director of Charity Navigator, a charity watchdog group in Mahwah, N.J., said in an e-mail message that he finds the checklist “deliberately vague” and feels it “allows for too much interpretation for charities that wish to skirt its intent.”
Even so, Mr. Stamp said the checklist could serve as a good starting point for charities wishing to strengthen and clarify their self-regulation efforts.
“Any organization that adopted all nine principles explicitly and without compromise would take a legitimate step toward demonstrating to their donors that they are responsible stewards of donor funds,” he said.
