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Accountability for Employees & Board

The Top Ten List for Nonprofit Employees and Board Members

1. Make your annual reports, list of board of directors, IRS Form 990, and Charitable Solicitation License easily accessible on your website.
   
2. Review the Basics of Nonprofit Financial Management
   • Alliance for Nonprofit Management
   • Basic Guide to Non-Profit Financial Management
     
3. Organizations should consult with an independent accounting firm or auditor to ensure that financial accountings are in compliance with Generally Accepted Accounting Standards (GAAP).
   
4. Most organizations that hold charitable assets in Michigan must be registered with the Charitable Trust Section of the Michigan Attorney General.
   
5. Most charities that solicit or receive contributions in Michigan must apply for a charitible solicitation license from the Michigan Attorney General. Also, any professional fundraiser used by an organization must have a license from the Michigan Attorney General
   
6. Work with your Board of Trustees to implement internal checks and balances on your financial activities, i.e., if you do not have an certified public accountant on staff - contract with one to review your financials on a regular basis; make sure that your board of directors reviews and approves financial statements at their meetings; once a year have an independent audit performed; have an accountant serve on your board (this should not be the same group that you use to review your financial statements on a regular basis or to perform the audit).
   
7. Adopt and follow a conflict of interest policy to ensure good, ethical decision-making procedures.
   
8. Read the following articles regarding common financial management risks facing nonprofits, the importance of audit committees and suggestions for internal controls to ensure accountability:
   • The most common financial management risks facing nonprofits, internal controls for cash disbursements and other articles on fiscal management and risk management in the Frequently Asked Questions Risk Management section of the Alliance for Nonprofit Management web site: www.allianceonline.org.
     
   • The audit committee and its expanding role in risk management and other articles from the Nonprofit Risk Management Center's newsletter Community Risk Management and Insurance. Use the search box to locate the article.
     
9. Use the Michigan Nonprofit Association Service and Resource Directory to locate consultants and financial professionals in your area.
   
10. Read MNA Links (monthly membership newsletter) regarding current information on this topic and attend trainings provided by the Michigan Nonprofit Association to further educate yourself and your organization.

Additional Tools and Resources for Nonprofit Accountability:

• Frequently asked questions concerning nonprofit board governance are posted on the BoardSource website and visitors can ask questions about legal obligations of nonprofit boards.
  
• The Better Business Bureau Wise Giving Alliance standards Charity Accountability Standards.
  
• Nonprofit Risk Management Center provides information in the areas of volunteer management, fiscal management, human resources, board accountability and more.
  
• Compass Point Nonprofit Services' Nonprofit Genie provides information on financial management, fundraising and IRS Form 990.
  
• Association of Fundraising Professionals has ethical standards of accountability for individuals engaged in raising funds for organizations.
  
• Idealist.org provides summaries of key discussions on accountability and information on nonprofit operations.
  
• Charitable Trust Section of the State Attorney General provides information on licensing, registration and working with fundraisers.