Nonprofit Executives National Networking Group

Nonprofit Executives is an organization focused on connecting professionals committed to the nonprofit sector.

Navigation
  • About NPE
  • About Leigh
  • NPE Blog
  • Events
  • From Bored 2 Board
  • Resources
  • Contact Us

Transparency – A Delicate Balancing Act for Nonprofits

January 13, 2016 By Nonprofit Executives

In today’s nonprofit landscape, charitable organizations are under tremendous pressure to maintain a high level of transparency in their operations. By sharing information, a nonprofit is perceived to be more trustworthy, more accountable to its constituents, and hopefully, more deserving of donations.

Also part of the landscape, are organizations like GuideStar and the Foundation Center that collect detailed information about nonprofits and offer their findings to the public at no cost. Their goal is to collect and present detailed information about nonprofits in an organized way so that donors can make informed decisions and comparisons to guide their giving. So for the nonprofit, there is a lot at stake when it comes to building a reputation of openness and transparency.

But how do you ensure that you are providing enough information to the public without going too far? How do you ensure your transparency doesn’t backfire? Where is the balance? Here are some basic guidelines that can help:

DO: Post a complete and accurate Form 990 on your website. Besides being a legal requirement, your Form 990 is the single most important tool for building trust and confidence among your constituents.
DON’T: Publicize the names of the donors that are listed on your Form 990—this information is confidential. Your donors have the right to remain anonymous until you have their express permission to share their identities.
DO: Share your Form 1023 that states your organization’s mission. It also lists the name, title, address and compensation of your officers, directors, trustees, employees, or contractors that receive greater than $50,000 per year.
DON’T: Provide the private street address for the individuals you list on your Form 1023. The IRS now allows the use of a mailing address in lieu of a street address in order to protect the privacy of employees.
DO: Disclose the minutes of board meetings as well as meeting notices if your organization operates in a state that has sunshine laws.
DON’T: Share the minutes of your executive meetings as these sessions often include discussions about confidential matters.
DO: Provide all audited financial statements per your state requirements.
DON’T: Disclose your organization’s financial budgets. A budget is merely a plan—a projection for the future that may or may not come to fruition. It is more important to share your year-end financial statements that reflect how your nonprofit ACTUALLY performed.

“I find that when you open the door toward openness and transparency, a lot of people will follow you through.” Kirsten Gillibrand, US Senator

Filed Under: The Nonprofit Blog

« 12/8/15 Boston Networking Group Meeting
2/10/16 Boston Networking Group Meeting »

From Bored 2 Board

Board Candidates
Board Opportunities

Sign-up to receive information about upcoming events by email.

SUBSCRIBE

  • Facebook
  • LinkedIn
  • Twitter

Tweets by NonprofitCFOs

Nonprofit Executives is an organization focused on connecting professionals committed to the nonprofit sector.
We link nonprofit professionals to resources, new opportunities and each other.
COPYRIGHT © 2022 NONPROFIT EXECUTIVES

Privacy Policy

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
Powered by CookieYes Logo