Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector. Baltimore, MD: Standards for Excellence Institute, 2004.

Review by Brian Fraser

Accountability and ethical behaviour are hot topics these days.  They shouldn’t be, especially in the not-for-profit sector, but they are. 

The reality is that the same temptations to engage in unethical, and even criminal, behaviour exist wherever two or three are gathered around a common purpose.  What often makes it easier for people to yield to those temptations in the not-for-profit sector is the weaker monitoring of behaviour and performance in that sector.  We expect and trust people serving the common good to live according to some common values – honesty, integrity, fairness, respect, trust, compassion, responsibility, and accountability – and are shocked and surprised when they don’t.  This is why every not-for-profit board should give serious consideration to adopting a code of ethics and accountability.

One of the best models that I have run across is the Standards for Excellence Institute’s Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector.  It was originally developed by the Maryland Association of Nonprofit Organizations and has been used as a template by Catholic not-for-profits across the USA and by state associations in Idaho, Louisiana, Maryland, Ohio, Oklahoma, Pennsylvania, Colorado, and West Virginia.

There are eight guiding principles and fifty-five standards that give more detailed performance benchmarks to assist not-for-profit organizations in strengthening their contributions to the social good.  For this review, I will simple outline the guiding principles and provide some comments on the standards that I think are most applicable to the opportunities and challenges faced by not-for-profit organizations today.

1. Mission and Program
   Not-for-profit organizations serve the public good and seek to achieve a stated purpose through specific activities.  There should be a well-defined mission and programs should effectively and efficiently serve that purpose.  Not-for-profit organizations should be mission-driven and boards have an obligation to ensure that their resources are devoted to achieving the stated purpose.
    
• Comment: Mission statements are often too long, too general, and too vague.  They should provide a clear base upon which to build an evaluation of the organization as a whole, its staff and volunteers, and the board.  That is the best test.
2. Governing Body
   Not-for-profit organizations are governed by an elected, volunteer board of directors made up of people committed to the mission.  An effective board determines the mission, establishes management policies and practices, assures that adequate human resources (volunteer and/or paid) and financial resources are available, and actively monitors the organization’s financial and programmatic performance.
    
• Comment: Boards are often reluctant to engage in the monitoring function much beyond the basic financials.  But the best run not-for-profit organizations are constantly monitoring to find ways to improve their profile and performance in the communities they serve and upon whom they depend for their support.  That is the true test of good governance.
3. Conflict of Interest
   Not-for-profit organizations should operate in the best interests of the organizations, not for the furtherance of personal interests or in the interests of third parties.  A clear policy should be place.
    
• Comment: None needed.  Just do it!
4. Human Resources
   A not-for-profit organization’s ability to achieve its mission depends on its employees and/or volunteers.  Volunteers occupy a special place in not-for-profit organization performance.  Both staff and volunteers should be provided with clear policies that are fair, establish clear expectations, and provide for meaningful and effective performance evaluation.
    
• Comment: There is that evaluation stuff again.  Are you beginning to get the point?  We are often reluctant to evaluate volunteers because they are not being paid and we are afraid of alienating them.  It is not about them.  It is about the organization and its mission.  And the quality of volunteers that you want and deserve will welcome clear and helpful feedback on how well they are contributing and what they could do better.
5.  Financial and Legal
   This one is about compliance – to the whole array of legal and regulatory requirements in your particular region.  It is also about transparent accountability to all those touched in any way by the work of your organization.  Periodic reviews should be done to ensure such compliance and accountability is really happening.
    
• Comment: This may seem like mundane and, for some, boring stuff, but it is essential.  Once a not-for-profit organization loses credibility because it did not pay careful attention to its financial and legal obligations, it is very difficult to rebuild its effectiveness.
6. Openness
   Not-for-profit organizations are societies and corporations that operate for public benefits with the support of the general public.  As such, they should provide the public interested in their activities with information about their mission, program activities, and finances.
    
• Comment: Websites are great places to make this stuff available.  Volunteers, especially those with the talents needed on boards, are becoming more and more discerning about the quality of organizations to which they will give their passion, talent, and time.  I think you will find more and more of the best volunteers asking for transparency about the performance of the organization, including honesty and candor about the challenges the organization faces.
7. Fundraising
   An organization’s fundraising program should be maintained on a foundation of truthfulness and responsible stewardship.  Its process for fundraising should be consistent with its mission, compatible with its organizational capacity, and respectful of the interests of donors and prospective donors.
    
• Comment: Fundraising is about relationships and the same respect for people that is required in dealing well with the human resources of the organization should be apparent in the fundraising activities.  It is about inviting people to be genuine partners in the enterprise and then delivering on that promise.
8. Public Affairs and Public Policy
   Not-for-profit organizations provide an important vehicle through which individuals organize and work together to improve their communities.  They exist to encourage board members, staff, volunteers, donors, and constituents to participate constructively in the public affairs of the community.
    

• Comment: This involves advocacy, education, and participation in ways that are nonpartisan but effective. It is a delicate balance at times, but worth the diligence.

Reviewing this document at one of your next board meetings would be a worthy exercise and would create the opportunity for an open exploration of the levels of excellence your organization is achieving.  People are watching and assessing all the time.  Those organizations that take preventative rather than corrective action will remain strong and credible through that scrutiny.

The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector is available here through The Standards for Excellence Institute at www.standardsforexcellenceinstitute.org.

About Brian Fraser
Brian Fraser is the Lead Provocateur of Jazzthink and President and Lead Coach of Starting SMART Coaching.  He is also currently a mentoring associate with Executive Consulting Canada. Brian has chaired the McAdam Book Award Jury for the Alliance for Nonprofit Management for the last several years and worked with the not-for-profit sector for his entire career.  Discover more about his passions and work at www.jazzthink.com.

About Volunteer Vancouver

The mission of Volunteer Vancouver is to inspire & build leadership in the voluntary sector. This publication is intended to be a medium of communication and information for the many organizations active in the volunteer and not-for-profit sector. The opinions expressed herein are solely those of the writers and do not necessarily reflect official policy of the Board of Directors of Volunteer Vancouver.

Volunteer Vancouver
1183 Melville, Vancouver, BC
V6E 2X5 Canada
t 604.875.9144
f 604.875.0710
www.volunteervancouver.ca

A United Way Member Organization and funded in part by the City of Vancouver.