Transparency & Accountability: Accessibility and Disclosure

1. A nonprofit should produce an annual report that contains information regarding activities and performance. The annual report should include:
   
   
   1. an explanation of the organization’s mission, activities, and results;
      
      
   2. an explanation of how individuals can access programs/services;
      
      
   3. overall financial information, including income and expense statements, balance sheet, and functional expense allocation; and
      
      
   4. a list of board members, management staff, supporters and donors.
      
      
2. A nonprofit should ensure that information regarding fees and services should be readily available to the public.
   
   
3. A nonprofit should ensure confidentiality and non-discriminatory service to its constituents. *ME/US
   
   
4. A nonprofit should meet all federal and state requirements for public disclosure. Federal law requires a nonprofit to provide the IRS Form 1023and the last three years’ information returns (IRS Form 990 or its variants). See IRS Publication 557 for more details. Disclosure requirements under state law vary according to whether the organization has members. *ME/US
   
   
5. A nonprofit must have a written, mandatory document retention and periodic destruction policy, which includes guidelines for handling electronic files and voicemail, back-up procedures, archiving of documents, and regular check-ups of the reliability of the system. (Sample Policy) Destruction of records may be a violation of federal law. *US
   
   
6. A nonprofit should have a written conflict of interest policy that is applicable to board members, staff and volunteers. It should clearly outline the types of conduct that raise concerns, procedures for disclosure or potential conflicts and provide for review by uninvolved members of the Board of Directors. This policy should be given to all board members, staff and volunteers. Although a conflicts policy is not a state or federal legal requirement, the IRS now asks whether an organization has such a policy on the Form 990, and a negative answer is a potential trigger for closer scrutiny. Template: Conflict of Interest Policy