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More grist for the mill--
The National Charities Information Bureau was founded in 1918 to investigate the many war relief funds which were springing up and raising large sums of money. Over the years the NCIB has established and updated standards for non-profits which are nationally accepted and used by non-profits to set policy and make decisions. In 2001 the NCIB merged with the Council of Better Business Bureaus Foundation and its Philanthropic Advisory Service to form the BBB Wise Giving Alliance.
Let's take a look at some of the NCIB standards--
Governance, Policy and Program Fundamentals
1. Board Governance:
The board is responsible for policy setting, fiscal guidance, and ongoing governance, and should regularly review the organization's policies, programs and operations.
Fiscal guidance includes responsibility for investment management decisions, for internal accounting controls, and for short and long-term budgeting decisions.
The board should have:
a. an independent, volunteer membership;
The ability of individual board members to make independent decisions on behalf of the organization is critical. EXISTANCE OF RELATIONSHIPS THAT COULD INTERFERE WITH THIS INDEPENDANCE COMPROMISES THE BOARD.
d. SPECIFIC TERMS OF OFFICE FOR ITS OFFICERS AND MEMBERS
h. policy guidelines to avoid material conflicts of interest involving board or staff;
In all instances where an organization's business or policy decisions can result in direct or indirect financial or personal benefit to a member of the board or staff, the decisions in question must be explicitly reviewed by the board with the members concerned absent. (Would this include having the organisation's insurance agent on the board? Or one of its airshow pilots?)
i. no material conflicts of interest involving board or staff;
j. a policy promoting pluralism and diversity within the organization's board, staff, and constituencies.
2. Purpose:
The organization's purpose, approved by the board, should be formally and specifically stated.
The formal or abridged statement of purpose should appear with some frequency in organization publications and presentations.
3. Programs:
The organization's activities should be consistent with its statement of purpose.
4. Information:
Promotion, fundraising, and public information should describe accurately the organization's identity, purpose, programs, and financial needs.
Not every communication from an organization need contain all this descriptive information, but each one should include all accurate information relevant to its primary message.
THERE SHOULD BE NO material omissions, exaggerations of fact, misleading photographs, or any other PRACTICE WHICH WOULD TEND TO CREATE A FALSE IMPRESSION OR MISUNDERSTANDING.
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