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05Mar 2014 by Fred Crooks

Principle 4: “Whistle-blower” Policy

Non Profit Principles: Steering You in the Right Direction

It is vital to have a policy in place to protect those individuals who come forward with information regarding unlawful practices or violations of organizational policies. The “whistle-blower” policy should implement specifics values to protect both the company and the individual bringing information forth. Certain laws are in place to protect those who provide valuable information about the organizations that have unethical activities. CORE CONCEPTS -Each organization should have a confidential process for addressing all complaints or reports of supposed illegal or unethical activities. -Staff and volunteers need to feel safe to report unacceptable acts. -Retaliation against whistleblowers can be a criminal act that applies to all organizations. -Appropriate internal controls can help alleviate the occurrence of unacceptable acts. LEGAL AND COMPLIANCE ISSUES -The Sarbanes- Oxley Act (SOX), Section 1107,…

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…

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,…

07Jan 2014 by William Simi

Donors Beware – Don’t Fall for Charity Scams Following Disasters

Not For Profit

The IRS warns consumers not to fall for bogus charity scams. They often occur in the wake of major disasters like the recent tornadoes in the Midwest or the typhoon in the Philippines. Thieves play on the goodwill of people who want to help disaster victims. They pose as a real charity in order to steal money or get private information to commit identity theft. The scams use different tactics. Offering charity relief, criminals often: -Claim to be with real charities to gain public trust. -Use names similar to legitimate charities. -Use email to steer people to bogus websites that often look like real charity sites. -Contact people by phone or email to get them to ‘donate’ money or give their financial information. The IRS offers the following tips to…

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.

30Jun 2011 by William Simi

Measuring What Matters: Performance Measurement for Not-For-Profit Organizations

Business Advisory, Not For Profit

In previous blog posts and newsletter articles, we have talked about the way in which a performance measurement program can help business owners enhance the profitability and operational efficiency of a for-profit enterprise. This article will discuss how performance measurement can be of benefit to a not-for-profit organization, as well. A performance measurement process involves the design and implementation of an information feedback system by which management identifies and then monitors its key performance indicators (KPIs). These KPIs give a business owner the ability to measure and, as a result, better manage those activities, behaviors and processes that drive organizational success, sustainability and profit. In a typical performance measurement application, the selected KPIs are incorporated into a balance scorecard framework that allows for the evaluation of business performance in light…

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