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The structure and purpose of nonprofit organizations create ethical dilemmas that leaders should be aware of. Honesty and transparency. ... Donor Privacy. ... Conflict of interest. ... Compensation. ... Strategic management. ... Internal accountability. ... Accountability and the board.
In most states, the corporations law provides that the individual who serves as president can't at the same time also hold the office of secretary or the office of treasurer. The purpose of this rule is to ensure that there's a check and balance in the executive staff of the corporation.
Among other things, nonprofit board directors are responsible for overseeing the organization's programs and activities. Laws require nonprofit boards to meet at least once annually, but most nonprofit boards meet as often as necessary to carry out their programs and activities responsibly.
Accountability is central to nonprofit board service. After all, boards are accountable to the organization's constituencies; boards are accountable for complying with governmental regulations; and boards are responsible for holding the CEO/executive director accountable.
Board members should be as open as possible about all the decisions and actions they make. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands it. Honesty.
Table of contents Failing to Understand Fiduciary Duties. Failing to Provide Effective Oversight. Deference to the Executive Committee, Board Chair, or the Organization's Founder. Micro-managing Staff. Avoiding The Hard Questions. Insufficient Conflict Management. Lack of Awareness of Laws Governing Tax-Exempts.
Honesty, integrity, transparency, confidentiality, and equity are each examples of values that are typically expressed in a charitable nonprofit's code of ethics - but there may be other values that are very important to your nonprofit - and you may wish to spell those out so that the donating public, prospective ...
Governance: Governance of nonprofit organizations covers the oversight for organizations, large-scale planning, and overall direction of the nonprofit. Management: Nonprofit management is what covers the day-to-day operations of the organization.