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Category: Transparency

  • 52 Tips in 52 Weeks Blog: Building Public Trust

    52 Tips in 52 Weeks Blog: Building Public Trust

    Like you, we follow the headlines. Of course, the headlines have been dominated the last few months with news and updates about the COVID-19 pandemic and its impact on our communities, country and world. We’ve been keeping up with the infection rates, the numbers of deaths and recoveries, and the situations related to stay-at-home orders and news on re-opening. Most recently, we’ve been overwhelmed and profoundly saddened by the headlines about systemic racism, life-threatening situations faced by people of color, and the demands for justice and equity.

    At the Standards for Excellence Institute, as we work to be nonprofit standard-bearers, we also follow headlines on trust and confidence in the nonprofit sector. Our mission is to promote the highest standards of ethics and accountability in nonprofit governance, management and operations, and to facilitate adherence to those standards by all nonprofit organizations. We have two overarching goals—strengthening nonprofits and enhancing the public’s trust in the nonprofit sector. We celebrate when we learn that public trust is on the upswing and we are disheartened when the public’s trust and confidence in the nonprofit sector wanes. We’ve seen our fair share of both since the inception of the Standards for Excellence program in 1998.

    Earlier this month, we were thrilled to read one particular set of headlines in the Chronicle of Philanthropy “Trust in Nonprofits Rises…” On June 4, 2020, Chronicle reporter Michael Theis penned an article outlining the results of a May 2020 poll of Americans by Luth Research, and the Nonprofit Institute at the University of San Diego’s School of Leadership and Education Sciences [1] that found “70 percent of Americans said they either had a ‘fair amount’ or a ‘great deal’ of confidence in the nonprofit response to the pandemic.” The confidence in state and local government and federal government were much less positive and fell to 65% and 44% respectively.

    To many in the sector, these confidence numbers are probably not a complete surprise. It seems that wherever you look, you can see nonprofits stepping up to meet the needs of community members and neighbors facing needs and challenges in the midst of the pandemic. They are offering medical care, educational services, arts and culture, and food and basic human needs. They are speaking out for equal justice and equity, and calling for an end to racism. The needs are great and our colleagues in the nonprofit sector are stepping up in heroic ways every day. This is how we earn the public’s trust. We bring our very best to our communities as we deliver on our many missions. We work to improve the lives of our neighbors in hundreds of ways. We seek to strengthen organizations and networks for greater quality of life and equity. That is our cause, and our promise, and we ask you for your trust.

    The Standards for Excellence Institute has created a series of educational resource packets to help nonprofits strengthen the ways that they manage and govern.  The Institutes’ collection, a full series of all packets – including sample policies, tools and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute.

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

    [1] 350 Americans were survey as part of this sample in the Luth Research/University of San Diego School of Leadership and Education Sciences study and has a margin of error of plus or minus 5 percent.

  • Developing Your Own Statement

    Developing Your Own Statement


    The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector calls for “all organizations to incorporate diversity, equity, and inclusion into their work as part of their missions.”  Most organizations have incorporated these principles into their organizational values, visions and goals.  The killing of George Floyd at the hands of police has created untold pain and fear among Black communities but has also mobilized leaders and organizations from across the nation to stand against systemic racism.  Staying silent in this time is not an option for organizations that have embraced a true commitment to diversity, equity, and inclusion.  Making a statement can highlight your organization’s unique mission and expertise, and provide an opportunity for you to educate the community on how the field in which you work is impacted by systemic racism.  It can also help your organizational stakeholders to clarify your analysis and action steps you can take.

    Below are some steps to take in preparing an organizational statement:

    • Read and listen to Black voices.
    • Have an organizational conversation. Invite Black people to speak first if they choose to do so.
    • Discuss the meaning of your mission, vision, and values statements in this context. How are they reflected your response?
    • Expect push-back, and talk about it in advance. Receiving criticism of your statement may be the sign that you are part of creating change, not just stating platitudes.  Your response to criticism will help you further your analysis and commitment.

    For the content of your statement, consider the following questions:

    • What is your mission, who do you serve, and how are people you are serving impacted by systemic racism?
    • What are our organizational values and how do we put those values into action now?
    • What analysis can we provide that is unique to our field?
    • How does our analysis link to broader, systemic, and institutional racism?
    • What help can we offer?
    • What actions will we take, and what commitments are we making?

    Always be non-partisan.  See resources from Alliance for Justice on 501(c)(3) rules for addressing the actions of incumbent officials in an election year.

    The process of creating a statement can help you deepen your commitment to racial equity, and uncover priorities you may have to deepen your work in this area.  We invite you to claim your expertise and stretch to consider and name laws or policies in your field that need to be examined with a racial equity lens.
     

    For more information on how you can incorporate the principles of diversity, equity and inclusion into the mission of your organization, please check out the Standards for Excellence educational resource packet Diversity, Equity, and Inclusion which offers advice and assistance on assessing your own diversity, equity and inclusion values, creating a strong and effective DEI policy, understanding the terms and language, as well as sample assessment and planning tools.

    The Standards for Excellence educational resource packet and the full series of all packets  – including sample policies, tools, and model procedures to help nonprofits achieve best practices in their governance and management – can be accessed by contacting a Licensed Standards for Excellence replication partner, one of the over 150 Standards for Excellence Licensed Consultants, or by becoming a member of the Standards for Excellence Institute. Members of Maryland Nonprofits have access to this and all 27 Standards for Excellence Educational Resource Packets through the member portal.

    We share our sincere wishes for your continued good health and patience as we all navigate these challenging and uncertain times.

  • Back to Basics: Charity Transparency, Trust, and the Board

    Back to Basics: Charity Transparency, Trust, and the Board

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    The following post about charity transparency was written by Standards for Excellence Licensed Consultant Carmen Marshall and is part of our “Ten Years of Advancing Excellence” blog series, celebrating ten years of the Standards for Excellence Licensed Consultant program. Carmen specializes in performance improvement, ideation and execution, communications, marketing, organizational development, training and executive coaching. As a management consultant, Carmen has helped numerous leaders, executives, and organizations grow and improve impacting their bottom line, raise additional funds and create new programs that move the organization’s vision forward. Carmen Marshall became a Standards for Excellence Licensed Consultant in 2013. 

    It’s been 10 years since the Standards for Excellence Institute® trained and licensed its first class of consultants to implement the Standards for Excellence®: An Ethics and Accountability Code for the Nonprofit Sector. When the Institute was established, it raised the bar and laid out a road map to achieving excellence for nonprofit organizations who would accept the challenge to strengthen their practices. Now a decade later, 216 nonprofit organizations have received the Standards for Excellence accreditation. In homage to the Institute’s work, it is fitting to revisit the fundamentals of the Code, that if followed, will help an organization achieve its mission with improved effectiveness and efficiency while holding to the highest of standards in nonprofit governance, ethics, and accountability. Back to Basics: Trust, Transparency and the Board is the first installment in the series. 

    Trust is to a nonprofit organization what wind is to an eagle. Without wind it cannot soar. Trust must also be integral to organizational culture lest it function in dysfunction. Consequently, the bedrock of trust building begins and ends with sincere and trustworthy leaders who are mission-driven, motivated and determined to do right by the organization. From there, that example must permeate every board, committee, and department.

    Charity Transparency: Trust-Builders and Trust-Busters

    Trust-Builder: Good communication of good information. It is imperative that information shared with and by leaders can be trusted, is timely and shared appropriately. Board members are able to make better decisions, create appropriate policy and oversight with reliable information. 

    Trust-Buster: Poor communication and bad or inadequate information sets up the board for unnecessary problems, bad decision-making or possible embarrassment. This erodes trust.
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    rust-Builder: Strong interpersonal communications. It may seem like a no-brainer, but simple, open and honest respectful interpersonal communication between board members or board and staff can go a long way toward building or sustaining trust. 

    Trust-Buster: Communication that is dishonoring or disrespectful is often at the root of strained relations between board members or board and staff. This not only erodes trust but it slows organizational progress. 

    Trust-Builder: Full engagement. Board members’ heads and hearts must be fully engaged to serve optimally. When board members exercise sound judgment that is always aimed at doing what is right for the organization simply because it’s right, it builds trust. When board members, staff, communities or members served by the organization know that the heart of the board is in the right place, and they are fully present and engaged, it builds trust. 

    Trust-Buster: Board members with high absenteeism, unaware of what’s going on with the organization, or who are perpetually silent do not garner trust. 

    Trust-Builder: Grace for growth based on shared values. Board members may not always agree or see eye-to-eye on every issue, but there are healthy and productive ways to solve problems and disputes, without distracting or detracting from the mission and the work of the organization. Things happen and people make mistakes, so allow for lessons to be learned and for change and correction to occur. Extend a little grace to one another knowing that even you can goof up from time to time. Resolve differences quickly, openly and honestly holding each board member in high esteem. It’s the Golden Rule, folks. Treat others as you would want to be treated. This builds trust. 

    Trust-Buster: Petty arguments and character assassination, even behind the scenes, will always spill onto center stage and distract everyone from the mission, work, and service delivery. This can damage a board, to say nothing of the organization and absolutely destroys trust. 

    Trust-Builder: Charity Transparency and Accountability. It is important to be clear about your role as a fiduciary. You are charged with safeguarding the public’s resources. As a board member, your fiduciary responsibility demands that you remain informed about the affairs of the organization. Should you ever come under scrutiny, “I didn’t know” won’t necessarily hold up, when it was your fiduciary responsibility “to know.” For starters, in every organization, there ought to be separation of duties to maintain transparency. As a board member you should be able to comfortably track and trace information and its sources so that you are comfortable that you are making decisions with the best information available. Transparency and accountability are the power twins of strong governance. 

    Trust-Buster: Refusing as a board member to take responsibility to safeguard the public’s resources either through ignorance, lack of interest or engagement. This erodes trust. 

    Finally, nonprofits in general, make an extraordinary difference serving humanity around the world. The Standards for Excellence Institute remains committed to promoting greater trust between the public and the nonprofit sector. 

    “Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to ensure that the organization governs and operates in an ethical and legal manner. Fostering exemplary conduct is one of the most effective means of developing internal and external trust as well as preventing misconduct. Moreover, to honor the trust that the public has given them, nonprofits have an obligation to go beyond legal requirements and embrace the highest ethical practices. Nonprofit board, staff, and volunteers must act in the best interest of the organization, rather than in furtherance of personal interests or the interests of third parties. A nonprofit should have policies in place, and should routinely and systematically implement those policies, to prevent actual, potential, or perceived conflicts of interest. In this way, ethics and compliance reinforce each other.” Standards for Excellence Code III – Legal Compliance, Guiding Principal.