Ensure Legal and Ethical Integrity – 9th of 10 Responsibilities of Nonprofit Boards

One important role of nonprofit boards is to ensure legal and ethical integrity. This includes compliance, transparency, and accountability.

Compliance means adhering to the regulations of local, state, and national governments to maintain public trust in the organization. This includes making sure the organization is properly registered.

Transparency means providing accurate information about an organization’s revenue and how it is spent. Keeping good records is critical in this effort, as is having an effective document retention and destruction policy as well as publishing an annual report.

Accountability measures including conducting an annual audit, instituting a whistleblower policy, and adopting a code of conduct. Boards must also define what constitutes a conflict of interest.

Legislators, watchdog groups, and attorney generals are likely to continue calling for greater compliance, transparency, and accountability. Rather than meeting only the minimum requirements, effective organizations typically exceed legal and ethical expectations.

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About cozbycpa

Heather L. Cozby is a CPA on the South Shore and Cape Cod. The managing partner of Cozby & Company, LLC, Heather has the resources and experience necessary to provide quality professional services on a timely basis and at a reasonable cost. She specializes in tax planning & preparation; audit, review & compilation services; management advisory services; bookkeeping; and accounting. Her unique niche is in working with homeowners’ associations and condominium trusts, advising with rental real estate, and providing outsourced financial consulting for mid-sized companies. She is more entrepreneurial than most accountants, and offers the best of both worlds - providing the services of a larger firm while retaining the ability to connect with her clients on a personal level.
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