One of the major issues facing the board is accountability and transparency.  It is not unusual to hear of reports of fraud that have taken place in organisations and small not for profit, charities or community based organisations.

Added to this are situations where there has been a conflict of interest or funds have not been used in accordance for the purpose that they were raised.

A recent article highlights the importance of being accountable and knowing what your organisation does with the donations that have been received.

In this article about Care 4 Kids there are questions raised in relation to how the donations that had been collected had actually been used.  The article discusses how nearly $1 million in donations had been collected but the organisation“…. cannot account for how all the money supposedly paid to beneficiaries has been spent.”  Subsequent discussion in the article discloses that some of the money had been paid to companies run by the son of one of the directors and a consultancy fee had been paid to another director.

The important issue is that by being more accountable and transparent you are also raising the level of confidence and trust that the supporters of your organisation have.

This can result in more active participation and engagement in your organisation which will be shown through an increase in donations, greater participation in activities or events as well as clients utilising more services and programs.

Without this accountability and transparency an organisation can face a significant backlash from the supporters of the organisation which can directly impact on the viability of the organisation.

The next post discusses way a board can be more accountable and transparent.