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Nonprofit Accountability

A nonprofit organization is a self-governing body created to provide services or to meet particular needs of communities. Unlike for-profits, nonprofit organizations operate to carry out a mission rather than to provide a profit for their owners. Revenue that is greater than expenses is put back into the organization to support the work of the organization, rather than being divided among the shareholders or owners.

Many resources are available for nonprofit employees, board members and donors striving to understand nonprofit accountability. Tools, checklists and standards are available through professional organizations and websites.

Nonprofit accountability falls into three categories--fiscal, process and program.

Fiscal accountability refers to how funds are accounted for and spent. Process accountability deals with systems for daily operations, including handling of funds, mail processing, employment policies and other systems that establish business processes within the organization. Program accountability is concerned with the delivery of services. Most nonprofit organizations strive to be accountable in all three areas. How does your organization measure up? The following list of links to pages on this and other websites will help you determine areas that require attention.