Updated Reviews and Improved Website Helps Donors Make Smart Giving Decisions

St. Paul, Minn. (April 28, 2010) – The Charities Review Council, an independent resource for people who support charities with financial donations, announces the launch of revised Accountability Standards, implemented by charities through an updated online Accountability Wizard review process. The purpose of the Accountability Standards is to strengthen nonprofits’ commitment to accountable practices and provide meaningful information to the donating public in order to advance more informed philanthropy.

Initially drafted in 1998, the Accountability Standards were recently updated by the Council to reflect economic, demographic, legal and societal changes. “The standards are the result of a year-long, broad grass roots effort that engaged diverse voices among nonprofit leaders, grantmakers, individual donors and academicians,” said former Council board member Claire Topp, a Dorsey & Whitney law firm partner, who headed up a diverse committee that advised the Council board and oversaw the development of the standards. “As such, they reflect state-of-the-art standards that balance donor expectations with nonprofit operational realities.” 

The revised Accountability Standards address charity performance in four critical areas: public disclosure, governance, financial activity and fundraising. A major focus of the new standards is the importance of engaged and effective governance. Accordingly, there are standards that address the areas of good governance reflected in the questions posed by the new IRS Form 990.

Other additions to the standards include:

• measuring and communicating accomplishments in terms of community impact;
• protecting donor information;
• limiting consecutive board terms;
• assessing and strengthening diversity and inclusivity.

 Financially, changes include allowing for greater infrastructure expenses as a necessary investment for nonprofits, and a more accurate analysis of a charity’s financial health. Additional information about changes to the Accountability Standards can be found here.

The Accountability Wizard is an online, educational assessment tool that helps nonprofits align with sound policies, practices and procedures as reflected by the Accountability Standards. Participation also helps nonprofits to build public trust and improve visibility and reputation with potential donors and grantmakers. While being redesigned to include the revised standards, the Accountability Wizard has been upgraded to improve navigation and offer enhanced online tools and technical resources for charities participating in the review process.

The Council also extended the time a nonprofit has to complete its review — from 60 days to a full-year — encouraging nonprofits to take advantage of the technical assistance offered by the Charities Review Council to help meet all of the standards.

“The updated Accountability Standards and changes to the Accountability Wizard make it easier for nonprofits to participate in our reviews and to align with sound governance and organizational practices,” said Rich Cowles, executive director of the Charities Review Council. “Ultimately, charities that meet the standards provide peace of mind for donors who want assurances that they’re making smart giving decisions in supporting accountable, transparent and trustworthy organizations.”

That reassurance extends to grantmakers as well, says Council board chair Steve Joul, president of the Central Minnesota Community Foundation. “The Charities Review Council’s new standards are a boon to grantmakers, supporting the due diligence process and allowing us to focus on the programmatic aspects of proposals. These standards reflect reasonable expectations of accountable nonprofits, based on the best thinking of a great many sector and community leaders and grantmakers would serve philanthropy well to expect nonprofits to adhere to them.”

More than 400 nonprofits have voluntarily participated in the Accountability Wizard, resulting in extensive information for donors and grantmakers posted on the Council’s website. A nonprofit that meets all of the standards earns the use of the Council’s “Meets Standards” seal —demonstrating the charity’s commitment to ethical and accountable practices. The Accountability Wizard review is valid for three years and may be renewed after that period.

The Charities Review Council has also introduced its redesigned Website www.smartgivers.org. The Website’s easy-to-use features and fresh navigation takes donors, nonprofits and grantmakers directly to information they are looking for.
 

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Media Note: Representatives from the Charities Review Council are available to talk about the new changes to the Accountability Standards and the launch of the improved Accountability Wizard. Please contact Helen Ng if you would like more information.