Leveraging Accountability

Jeff Sobers, Product Marketing Manager

Blackbaud, Inc.

@JeffSobers

AGENDA

Why does accountability matter?

Understand, measure and improve

Nine ways to improve accountability

Why does

ACCOUNTABILITY

matter?

1. Fraud and fiscal mismanagement

2. Need growing faster than funding

3. Donors expect more than ever

ACCOUNTABILITY

MATTERS

FRAUD 1

LOSS OF MAJOR DONORS

BOARD MEMBERS

FORCED TO RESIGN

FORCED TO PAY DAMAGES

DEMAND 2

OUTPACING

FUNDING

What do you expect to

happen to demand for your

services in 2013?

INCREASE SIGNIFICANTLY INCREASE SLIGHTLY STAY THE SAME DECREASE

31%

42%

21%

5%

35% 36%

20%

10%

41% 36%

16%

7%

44% 41%

12%

4%

Significantly Increased

Slightly Increased

Stayed the Same

Decreased

DEMAND FOR SERVICES

2008 2009 2010 2011

Source: 2012 Nonprofit Finance Fund

Do you expect to be able to

meet all of the demand for

your services in 2013?

56% 51% 52% 50%

44% 49% 48% 50%

2009 2010 2011 2012

Were Nonprofits Able to Meet Demand for

Services?

Yes

No

3

DONORS

DEMAND

TRANSPARANCY

INFORMATION IS AVAILABLE

LIKE NEVER BEFORE

WHERE DID THE MONEY GO?

Do you think the nonprofit

sector is on the right track

or has seriously gotten off

in the wrong direction?

30%

32%

38%

OVERALL

Right Track

Wrong Direction

Not Sure

Source: 2010 Harris Poll

36% 38%

35% 33%

29%

21%

16% 19%

23%

34% 38% 37%

48%

43% 42%

33% 33%

42%

18 - 24 25 - 29 30 - 39 40 - 49 50 - 64 65+

BY AGE GROUP

Right Track Wrong Direction Not Sure

RECAP:

1. Fraud and fiscal mismanagement

2. Need growing faster than funding

3. Donors expect more than ever

What’s a

nonprofit

to do?

Understand,

measure,

and improve

What is

ACCOUNTABILITY?

WITHOUT

PUBLIC

TRUST

NONPROFITS

WOULDN’T

EXIST

ACCOUNTABILITY

versus

STEWARDSHIP

WHAT IS YOUR

ACCOUNTABILITY IQ?

Does the organization hold

staff and board meetings

on ethics or take other

measures to foster a

culture of accountability

and transparency?

Does the organization have

a code of ethics and

statement of values and

post it on your website?

Does the organization

follow a conflict of interest

policy and post it on the

website?

Does the organization have

board members with

financial expertise?

Does the organization have

its financial statements

independently audited?

Does the organization take

steps to remain current with

the law?

Does the organization have

board members review

financial statements,

including the Form 990?

Does the organization have

the CEO or CFO sign the

Form 990?

Does the organization file

the Form 990

electronically?

Does the organization post

the Form 990 on your

website?

Does the organization post

the policies, financial

information, and

information on programs

results on the website?

Does the organization have

a supported policy on

reporting suspected

misconduct

(a whistleblower policy)?

SCORING

SCORE WHAT IT MEANS

12 Great, keep up the good work and pass along

your success stories and model policies for others

to learn

9 – 11 Good, but there’s room for improvement

6 – 8 You’ve indicated commitment to accountability,

but need to move beyond the basics

0 – 5 Time to get serious about accountability. Engage

your Board, staff and volunteers quickly to help

make the needed changes.

Didn’t get the

score you

expected?

9 WAYS TO

IMPROVE

ACCOUNTABILITY

1 Create a culture of transparency

2 Create a donor Bill of Rights

http://www.afpnet.org/files/ContentDocuments/Donor_Bill_of_Rights.pdf

3 Adopt a conflict of interest policy

4 Ensure the Board of

Directors can fulfill its

fiscal responsibility

5 Conduct independent

financial reviews and audits

6 Ensure the accuracy of the Form 990 and

make it public

7

Be transparent

external stakeholders with

8 Establish and

support a policy of

reporting suspected

misconduct

9 Remain current

with the law

REVIEW:

1. Create a culture of transparency

2. Create a Donor Bill of Rights

3. Adopt a conflict of interest policy

4. Ensure the Board can fulfill its fiscal

responsibility

5. Conduct independent audits

6. Ensure the 990 is accurate and public

7. Be transparent with stakeholders

8. Establish a whistleblower policy

9. Remain current with the law

What

QUESTIONS

do you have?

Twitter: @JeffSobers

http://www.slideshare.net/jsobers1