Legal Compliance

Philosophy: The Council believes that to uphold the public’s trust in the nonprofit sector, a charity should at a minimum carry out its actions in accordance with Minnesota and federal charity law.

Standard: For the year under review and the preceding two years, the organization has not violated any applicable provisions of Minnesota or federal law relating to the organization’s tax exempt status, registration with and reporting to governmental agencies and the public or fundraising practices.

Financial & Annual Reporting

Philosophy: The Council believes that providing complete information to prospective donors promotes informed, responsible philanthropy.

Standard: The organization provides the following upon request:

An annual report that includes:

• a description of the organization’s purpose,
• a description of its program activities, accomplishments and geographic area served, 
• a summary of the total cost of each major program (to the extent required in the IRS Form 990), and 
• a list of the organization’s board of directors.

Annual financial statements prepared in conformance with generally accepted accounting principles, and audited when required by federal or state law or contracts to which the organization is a party.

Accomplishments

Philosophy: The Council believes that the programs offered by a charity and the results made possible by contributions are of utmost concern to potential donors. Familiarity with the organization’s programs and results is essential to any informed giving decision and allows potential donors to match their interests with those of the charities they are supporting.

Standard: Through the annual report or other communications available to donors, the organization provides specific, objective information about its accomplishments related to its stated mission.

Reporting Consistency

Philosophy: The Council believes that inconsistencies among a charity’s programs, activities and financial information as described in its annual report, audited financial statements and IRS Form 990 prevent donors from meaningfully evaluating the charity’s programs and effectiveness.

Standard: Program names, activities and financial information listed in the annual report, audited financial statement and IRS Form 990 are consistent.