Non Profit Principles: Steering You in the Right Direction Archives » Page 2 of 2

19Feb 2014 by Fred Crooks

Principle 3: Conflicts of Interest

Non Profit Principles: Steering You in the Right Direction

A charitable organization should implement policies and procedures to ensure that all conflicts of interest or the appearance thereof, within the organization as well as the board are managed with disclosure and recusal. All conflicts of interest need to be addressed cautiously and quickly resolved even though they may not be illegal or unethical. Yet these are still unavoidable. Strategies need to be intact and followed by the board when dealing with such conflicts. It is also important to make certain that only independent board members vote when a conflict of interest occurs (more information on Principle 12). On the opposite side, board members with material conflict of interest must recuse themselves from such board discussions as well as votes. It is crucial that a written conflict- of- interest policy…

05Feb 2014 by Fred Crooks

Principle 2: Code of Ethics

Non Profit Principles: Steering You in the Right Direction

A formally adopted, written code of ethics is extremely important for a non-profit company to adopt and have all of their directors or trustees, staff, and volunteers be familiar with and adhere to. The laws surrounding the code of ethics provide minimum requirements for your board and organization to remain compliant. We suggest using these laws as a set of guidelines to build your code of ethics to the next level. Also remember that ethical standards extend legal requirements, meaning that it is not about just doing things right, but also doing the right thing. To start conversations around a code of ethics, consider outlining your organization’s beliefs and values to which it aspires and then providing a code of conduct for all those who work with the organization. LEGAL…

02Feb 2014 by William Simi

Top Facilitation Training – Managing the Focused Conversation

Non Profit Principles: Steering You in the Right Direction

My partner and I recently participated in the Institute of Cultural Affairs (ICA), Technology of Participation (ToP) training in Sacramento. It was an intensive but well-spent two days learning the ToP methodologies and processes for conducting group sessions in participatory decision making and consensus building. These methods have been tested through twenty-five years of experience and experimentation with groups all over the world and are now being widely used by leaders in for-profit businesses, not-for-profit organizations, local community groups and governmental agencies with great success. I like the method not only because it provides us with a very workable and, at the same time flexible framework, for the conducting the kind of consulting projects our firm does but because it appeals to my accountant’s sense of orderliness, symmetry and simple…

24Jan 2014 by William Simi

Principle 1: Laws and Regulations for Non Profit Organizations

Non Profit Principles: Steering You in the Right Direction

A charitable organization must comply with all applicable federal laws and regulations, as well as applicable laws and regulations of the states and the local jurisdictions in which it is based and operates. If the organization conducts programs outside of the United States, it must also abide by applicable international laws, regulations and conventions that are legally binding on the United States. The board must be familiar with the hierarchy of laws and the legal framework within which the organizations functions. Making certain that the governing body of your organization is aware of new and updated laws is crucial. Laws are often advanced or added annually; therefore those individuals need to be aware of all legalities pertaining to the organization. LEGAL AND COMPLIANCE ISSUES -Non-profits are covered under federal, state,…

18Dec 2013 by Fred Crooks

Should Salaries be Capped for Nonprofit Executives?

Non Profit Principles: Steering You in the Right Direction

By: Fred Crooks The President of the United States makes $450,000 and this is the amount that California unions hope to cap non-profit hospital executive salaries at. - George Halvorson, CEO Kaiser Permanente: $7,861,915 - Lloyd Dean, CEO Dignity Health: $3,907,346 - Patrick Fry, CEO Sutter Health: $3,045,216 - James Brewster, VP Adventist Health Roseville: $2,010,040 - Robert Carmen, CEO Adventist Health Roseville: $1,741,988 - Stanley Adams, VP Adventist Health: $1,563,496 - Thomas Gagen, CEO Sutter Medical Center Sacramento: $1,391,316 - Patrick Brady, CEO Sutter Roseville Medical Center: $1,059,659 As you can see, non-profit hospital executives make well over $450,000. There is concern about how non-profit hospitals are “non-profit.” The California Nurses association tried to pass AB975, which would have required nonprofit hospitals to justify their nonprofit status if their…

05Jun 2013 by William Simi

Principle 12: Board Independence

Non Profit Principles: Steering You in the Right Direction, Not For Profit

The majority of the board members of a charitable organization should be independent. Two-thirds of them should be independent and they shall not be entitled to compensation, receive any financial benefits, and should not be related to anyone one in the organization who does. -All members must have loyalty to the company and put the organization’s interests above their own. -Pushing for a nepotism policy will help elude favoritism among the board members. LEGAL AND COMPLIANCE ISSUES -IRS Form 990 asks how many of the board members that are independent. -The IRS defines what independent board member is. -A few state laws set a minimum number for independent board members.

09Apr 2013 by Fred Crooks

Principle 8: Board Responsibilities

Non Profit Principles: Steering You in the Right Direction

Every nonprofit organization needs to have a governing body that has responsibilities of reviewing and approving the nonprofit’s mission and direction, following an annual budget, and adhering to policies that consists of compensation, practices, and governance. -The board members are responsible for overseeing and governing all the organization’s affairs. -The mission and strategic direction of the organization are set through the board along with the CEO and Senior Staff. And the results should be used as a guide for future decisions. -Having the policies clear is important to help guide and to protect the organization and its board members. LEGAL AND COMPLIANCE ISSUES -All state laws make it a requirement for nonprofit organizations to have a board of directors. -Through the IRS Form 990 has a set of questions that…

22Mar 2013 by William Simi

Principle 7: Availability of Information to the Public

Archived Posts, Non Profit Principles: Steering You in the Right Direction

It is vital for a charitable organization to make their information about operations, governance, finances, activities, programs, all publically available. It’s also good to consider making information including the methods they use to evaluate outcomes of work and evaluations publically available. -It is important to have transparency in order to gain the trust of the public. -The board should note the difference what public information must be shared and what confidential information that needs to be guarded. -An easy way to meet the IRS public activity is to post the IRS form 990 on the internet. -A website that is accurate, professional, and clear helps promote transparency to the public and a central place of the organization’s information. LEGAL AND COMPLIANCE ISSUES -The IRS Forms 990 and 990-T from the…

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