In efforts to promote informed and responsible philanthropy, public transparency plays an important part to the puzzle.  When information is available to donors, they are arguably better able to make informed decisions about their giving practices.  Information such as a nonprofit’s purpose, who governs it, how it manages its financial resources, whom the nonprofit serves, and what progress it has made toward achieving its purpose should all be readily available to constituents and donors.

To meet this Accountability Standard, nonprofits must first comply with legal requirements for public disclosure.  This includes public access to three years of:

• IRS form 990, 990-EZ or 990T
• IRS form 1023
• Application for Recognition of Exemption Under Section 501(c)(3) of the Internal Revenue Code

This, however, is not all the nonprofit is responsible for disclosing.  Other information must also be accessible on an annual basis.  This information includes the nonprofit’s:

• Mission statement
• Board of Directors list
• Annual financial statements (prepared in conformance with the GAAP, Generally Accepted Accounting Principles)
• Summary of the total cost of each major program and the nonprofit’s fundraising and administrative costs (as defined by either the GAAP or IRS guidance for completing IRS Form 990)
• Descriptions of its programs, activities, and accomplishments in relation to its mission for at least the most recent fiscal year
• Description of the communities or populations and geographic areas served

All of the above information should be available on the nonprofit’s website, preferably in the same place.

To learn more about these standards or to download the complete list of Accountability Standards, click here.