| What does transparency and accountability mean | | | | honest and ethical in using donated funds." And |
| to you and how does it relate to maintaining high | | | | 33% believed that "nonprofits have seriously gone |
| ethical standards? Most nonprofit experts will tell | | | | off in the wrong direction." |
| you that accountability means being honest with | | | | As a Christian ministry, you are more vulnerable |
| your stakeholders and with the public about your | | | | to problems and failure, including scandals, if you |
| organization's finances, governance, and | | | | do not prioritize transparency and accountability. A |
| management -- in short, being upright in all of your | | | | recent investigation illustrates how Christian |
| professional conduct. Transparency allows those | | | | ministries are often watched more closely by the |
| outside the organization to see your level of | | | | public and especially by government entities. |
| accountability and to realize the level of ethical | | | | In 2007 Senator Charles Grassley of Iowa, the |
| standards you have set for the ministry. | | | | ranking Republican on the Senate Finance |
| Together, these three key factors build trust and | | | | Committee, announced his investigation of six |
| assure the public that your organization is what it | | | | prominent televangelist ministries for possible |
| claims to be and is worthy of financial support. | | | | financial misconduct. Although these ministries paid |
| But transparency and accountability mean more | | | | their executives high salaries and made large |
| than that to you as a grant seeking nonprofit | | | | expenditures for some questionable items, they |
| ministry. Your organization's ability to attract grant | | | | were no less thrifty than other large nonprofits. In |
| funds rests on being transparent and accountable. | | | | fact, NONE of the top executives of these six |
| If you're not completely trusted, foundations | | | | ministries are near the top of the highest paid |
| probably will decline to provide the funds you | | | | nonprofit executives. The highest paid nonprofit |
| need to carry out your mission. | | | | executives all came from museums, healthcare |
| As a nonprofit, you are given tax-exempt | | | | agencies, and universities...yet there was no |
| 501(c)(3) status because you exist to serve the | | | | investigation of these types of organizations. The |
| public and better your community. The public is | | | | implication is clear, a nonprofit claiming to be a |
| your stakeholder. Your ministry depends on public | | | | Christian ministry is held to a much higher ethical |
| goodwill even more than for profit-making | | | | standard, even by secular individuals and entities. |
| organizations. When the public loses faith in a | | | | Establishing the level of trust necessary to attract |
| nonprofit, donations fall and the nonprofit's ability | | | | funding will require you to take proactive steps. |
| to do its job is compromised. | | | | Look for our follow-up article on how to perform |
| Unfortunately, distrust of nonprofit organizations | | | | an analysis of funding preparedness to ensure |
| runs high. A Harris poll in 2006 found that only | | | | that your ministry is ready to seek and secure |
| 10% of Americans believed that "charities are | | | | grant funding. |