A Consumer’s Guide to Grants Management Software
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Fall 2011
Seeing Clearly – A Look at Transparency
I have been involved in philanthropy for almost twenty years. This seems almost impossible; but as I get ready to send my first child to college this fall, I realize it must be true – it really has been that long. The field has changed dramatically during this time with respect to how we provide and share information, and what accountability and transparency mean and how they are practiced.
I remember an individual requesting a copy of the Form 990-PF for the foundation where I was working in the early '90s. Our policy at the time was to have them make an appointment to come to the office and review the return. I sat in a conference room with the individual as they reviewed the return and took notes. Talk about a difficult and time-consuming way to obtain information. Thankfully, things have changed in terms of what is required and what is expected of grantmakers and nonprofit organizations. Now we live in an environment of social media, instant information, and always being “plugged in.” How have we responded to these changes? How are we embracing the expectations and requirements? How are we using the new tools at our disposal to effectively and efficiently achieve transparency?
What is transparency, and why is it important? As grants managers, many of us are responsible for some aspect of reviewing documentation from applicants and grantees and might have our own ideas about the answer to this question. The stakeholders that we work for—the IRS, donors, and the public—are demanding a higher level of accountability and transparency than ever before. GuideStar® defines transparency as answering these questions for donors and funders:
- Is this a legitimate 501(c)(3) nonprofit?
- What social impact will my donation have?
- How fiscally responsible is this organization?
- What are this organization's goals and intentions?
The dictionary defines transparent as: free from pretense or deceit; easily detected or seen through; readily understood; characterized by visibility or accessibility of information especially concerning business practices. From the Latin - trans across/through- + apparere to appear/be evident/show.
So how transparent is GMN? How easily does GMN show itself? Making GMN a model for nonprofit accountability and transparency is one of our goals. The board has taken many steps over the past year to embrace this goal and demonstrate its commitment to achieving it. In March 2011 the board adopted the Principles for Good Governance and Ethical Practice framework to ensure GMN has complete and strong governance, policies, and practices. One of the framework principals is that charitable organizations should make information about their operations, including governance, finances, programs, and activities, widely available to the public. At the same meeting, the board adopted a transparency policy to formalize GMN’s commitment to openness and ethical behavior in all of its activities.
Legal requirements compel the filing of a Form 990. Beyond this basic requirement, charitable organizations can demonstrate their commitment to accountability and transparency by offering additional information about what they do and how they operate. The GMN website demonstrates our commitment to accountability and transparency. There you can find our mission and values; bylaws, board of directors list, staff bios, annual reports , strategic plan, budget, audited financial statements, tax returns, and much more.
Beginning this year, the board has been providing recaps of its meetings and other board-related news with GMN members on the Online Community. We encourage members to contact the board with questions and feedback on GMN governance. So, how are we doing? I hope you agree that GMN has demonstrated that it is committed to a very high level of accountability and transparency to our members and funders. What else do you want to know about GMN? We would love to hear from you!
Join a conversation on the GMN Online Community about accessibility of information. How does your organization embrace and demonstrate transparency? How have you, as a grants manager, influenced your organization to “show itself?” Has GMN had a role in helping you and your organization achieve greater transparency?
Certificate in Grantmaking Discount
GMN members receive a 15% discount on courses at NYU's Academy for Grantmaking and Funder Education.
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2011 Salary Survey Launching
Members—look for GMN’s biannual salary survey in your email inbox in late September.
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