The start of a new year is the perfect time for charities to refocus on good governance, ensuring their boards of directors are prepared to guide operations with integrity and efficiency.

Key Principles of Good Governance for Charities

The beginning of the year is a time when many charities begin to implement their latest budgets and plans in terms of directions and goals. The ultimate responsibility for setting and approving the organization’s direction sets with the board of directors. In addition, a charity with a well-run board of directors will have the best chance to succeed and ensure that the organization’s operations are carried out with great integrity and efficiency.

To help ensure good governance, the first section of the BBB Standards for Charity Accountability includes a number of requirements such as board oversight of operations and staff, the frequency of governing board meetings, and not having more than 10% of the board compensated directly or indirectly. Previous posts of Wise Giving Wednesday have also highlighted essential elements of responsible governance:

• Duty of loyalty – act in the nonprofit's best interest and disclose related party transactions that could result in a potential conflict of interest
• Duty of care – be familiar with the organization's finances and activities and regularly participate in its governance, in "good faith" 
• Duty of obedience – ensure that the organization complies with applicable laws and regulations, its mission, and its internal governance documents and policies

Additional guidance and recommendations of the BBB Charity Standards can be found in the implementation descriptions of the BBB Standards for Charity Accountability.  Also, a number of state government agencies that regulate charities produce helpful advisories on charity governance such as the board responsibility book, Right from the Start: Responsibilities of Directors of Not-for-Profit Corporations, produced by the Charities Bureau of the Office of the New York State Attorney General.

Heart of Giving Podcast – Scott Santarella on Battling Alpha-1

This week’s Heart of Giving Podcast features Scott Santarella, President & CEO, Alpha-1 Foundation (a BBB Accredited Charity) which offers programs and services to people living with Alpha-1, their friends and families, Alpha-1 carriers, healthcare providers treating patients with Alpha-1, and researchers for a cure for Alpha-1. Alpah-1 is a genetic disorder that can cause liver and lung damage.

Explore Three of Our Latest Reports

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include:

• Oregon Lions Sight & Hearing Foundation
• Wild Animal Sanctuary
• Tee It Up for the Troops

Finally, remember to let us know by going to give.org/charity-inquiry if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.