Nonprofit Self Assessment Checklist by qlo19181

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									Foundation Accountability
Workshop



Grantmakers of Oregon and Southwest Washington
Portland, Oregon
June 8, 2007
Today’s Agenda

• Accountability Discussion
• GOSW Principles Overview
• Group Discussion: Accountability Practices
• Break
• Accountability Self-Assessment Tool Overview
• Group Discussion: Accountability Self-Assessment
• Using the Self-Assessment Tool
• Q&A
What Is Accountability?


• How do you define it?
• Why is it important?
• How does it affect your work?
Accountable to Whom?

Representing the Public’s Interests
• IRS
• Congress
• State Regulators (Attorneys General, etc.)
• State Legislatures
• Courts
Serving the Public’s Interests
• Grantees
• Communities Served
• Donors
The Push for Greater Accountability

             Corporate Misconduct



             Nonprofit Misconduct


              Foundation Growth

                 Foundation
                 Misconduct

                  Getty Trust,
                 Boston Globe

            Gates, Buffett, Dot.Com
                    Wealth

            Aramony/UW, Red Cross,
                 Smithsonian

            Enron, Tyco, WorldCom
The Push for Greater Accountability
Congress
• Sarbanes-Oxley Act (2002)
• Pension Protection Act (2006)
• New House hearings on charities & foundations (2007)
• Senate leaders call for 990/990-PF reforms (2007)


IRS
• New Form 1023 (2004): conflict of interest policy
• Executive compensation study (2007)
• Good governance practices for charities (2007)
The Push for More Accountability

State Legislators & Regulators
• New nonprofit audit, reporting & registration requirements
  (2004-2005): CA, CT, MA, ME, KS, NH
• New nonprofit governance requirements (2004): HI, IA
• Missouri (2004): AG imposed governance changes on
  Kauffman Foundation
• Michigan (2006): Bill proposed onerous restrictions
  on foundation grantmaking
• Ohio (2006): AG proposed onerous new governance
  & reporting requirements for charitable trusts
Accountable for What?

• Legal compliance
• Personal benefit (compensation, expenses)
• Governance practices
• Transparency/communications/reporting
• Grantmaking
• Donor intent
• Charitable mission
• Financial controls & management
• Investment practices
GOSW’s Principles

1. We are aware of and fulfill our fiduciary and legal responsibilities

2. We serve the public good by adhering to the highest standards of
   ethical behavior

3. We honor the intent of our donors, founders, and/or founding
   mandates

4. We are thoughtful and purposeful in our grantmaking and
   periodically review and evaluate our mission, priorities, policies and
   practices

5. We recognize the increasing cultural diversity of the communities
   and constituents that we serve and within the limits of our individual
   charters seek to reflect this diversity in our giving
GOSW’s Principles

6. We deal respectfully with applicants, grantees and donors, as well
   as those simply seeking information about our programs

7. We publish or otherwise make readily available basic information
   about our programs, funding priorities, and application requirements

8. We define the expected steps in our grantmaking process and
   communicate these to applicants and grantees

9. We are accessible and respond clearly, promptly, and as fairly as
   possible to all requests for information and meetings

10. We respect the confidentiality of applicants, grantees and donors
    and use discretion in communicating with others about specific
    organizations or individuals
Focus Group Discussion #1

• Group by GOSW guiding principle (assigned)
• Question: What are key foundation
  accountability practices for this principle?
•   Assign 3 roles in the group:
    – Facilitator
    – Recorder
    – Reporter
Today’s Agenda

• Accountability Discussion
• GOSW Principles Overview
• Group Discussion: Accountability Practices
• Break
• Accountability Self-Assessment Tool Overview
• Group Discussion: Accountability Self-Assessment
• Using the Self-Assessment Tool
• Q&A
Accountability Self-Assessment

Key Purpose

Help private foundations ensure they are …
• Complying with key laws & regulations
• Engaging in good accountability practices
The Value of Self-Assessment

Public Trust Continuum

  Abide by      Educate on       Voluntary        Self-      Peer     Oversight &
current laws    legal issues   adherence to    assessment   review      rating or
& regulations      & best       principles &                            accredi-
                  practices      practices                           tation by field
Accountability Self-Assessment

Why a Self-Assessment Tool?

• Top need identified by RAs with principles
• Helps make RA principles real for grantmakers
• Provides practical assistance
Accountability Self-Assessment

General Development Guidelines

• Flexible
• Comprehensive
• Customize for RAs
• A learning tool
• Easy to use
Accountability Self-Assessment

Development Process

• Reviewed wide range of self-assessment models
• Reviewed wide range of grantmaker best practices
• Legal review
• Evaluation review
• Testing at 3 RA sites
Accountability Self-Assessment

Key Features

• 9 subject sections
• 3 levels
• 2 versions: staffed & unstaffed
• Extensive resource list
• Excel worksheet
Accountability Self-Assessment

Example: Communications/
Disclosure – 990-PF
• Level 1: Legal Compliance:
  We file our 990-PF by the legal deadline

• Level 2: Good Practices for Accountability:
  Our 990-PF is reviewed and approved by our CEO
  and chief financial person before it is submitted

• Level 3: Practices of Excellence for Accountability:
  We post our 990-PF on our website
Focus Group Discussion #2

• Group by topic area (self-select)
• Question: Identify top opportunity & top
  challenge in self-assessment tool topic
  assigned to your group
•   Assign 3 roles in the group:
    – Facilitator
    – Recorder
    – Reporter
Focus Group Discussion

Group Assignment:
• Identify a top opportunity in the tool
  “It would be really helpful if we could engage
  in this practice or do it better”
• Identify a top challenge in the tool
  “It would be difficult for us to engage in this
   practice because …”
Discussion Topics


1. Governance: Board Management
2. Governance: Conflicts of Interest
3. Communications/Disclosure
4. Grantmaking: Grant Decision-Making &
   Management
5. Finance
6. Mission & Strategy
Uses for Self-Assessment Tool

• Periodic check-in on accountability & compliance
• Annual checklist on compliance
• Facilitate staff/board group discussion on
  accountability & ethics
• Input for strategic planning
• A resource for new board & staff
• Use at foundation retreats
Future Issues

• Tool for corporate grantmakers
• Tool for community/public foundations
• Online version
• Comparisons with other foundations
Today’s Agenda

• Accountability Discussion
• GOSW Principles Overview
• Group Discussion: Accountability Practices
• Break
• Accountability Self-Assessment Tool Overview
• Group Discussion: Accountability Self-Assessment
• Using the Self-Assessment Tool
• Q&A
DJB Consulting Services

David Biemesderfer
President

Phone: 813.223.1756
E-mail: david@djbconsultingservices.com
Web. www.djbconsultingservices.com

								
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