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Non profit organizations have a greater call for accountability when it comes to gaining trust for their commitments and principles.

What does it mean to be accountable ?

Practices such as governance, ethics, policies, financial transparency, internal controls and regulations demonstrate accountability. Nonprofit organizations are accountable to the public and close associates such as sponsors, for their ethical behavior, and compliance with the set standards.

Questions are always raised on nonprofit leaders when a distrustful or unethical situation arises. Thus, scandalous events may give rise to complications in their own organization. The associates or sponsors demand knowledge of use of their money . Even if a single sponsor or donor comes across a situation of non governance and fraud, it would affect the image of the organization severely. Hence, this will cause the stakeholders to reclaim their money, depriving the organization to function well and eventually shut down.



Non profit organizations have many faces of accountability.  The most important questions they face are –

-Who are they accountable to?
-What are they accountable for?
Accountability not necessarily always means complying with laws but also being honest with your public and donors. Nonprofit organizations hold their accountability towards the donors or sponsors who have provided them with the finance to function. Acknowledgement should be given to all the volunteers. They ought to respect their contribution and be notice their efforts.

Internal Accountability

Most importantly, non profit organization should be genuine with its own staff and helpers, because without being true to your own family, you will not be able to progress forward. They hold different degrees of accountability towards each of their patrons. Hence, a detailed assessment and good rapport with its stakeholders shall foster such values.

The world holds nonprofit organizations accountable for multiple factors. Stakeholders should be communicated the vision, mission, values and long term goals of the organization . These stakeholders regularly question them for their performance and progress in alignment to the set standards.

The individuals associated with the organization also interested in knowing about the finances. Financial policies of the organization should be regularly. The procedures should be transparent. The stakeholders have a right to know about investment of their money and if the organisation meets their expectations.

Role of the Board in accountability

Various factors decide the Board performance and their accountability towards the organisation. The Board should fulfill the goals and values of the organization. It  should include the staff during decision making and act as a considerate governor of the organisation.

To ensure that these organizations are accountable to the concerned authorities, various methods have been developed for disclosure of statements, audits & agreements, evaluations and assessments, internal controls, feedback mechanism etc. Such disclosures, reports and controls act as great accountability tools to provide input on basic nonprofit operations. They encourage the organization to pay attention on their compliance driven accountability. The existence of a nonprofit organization runs on public trust and their stakeholders content.

To conclude, we can say that accountability is associated with many other factors excluding compliance and regulations . It also has a deep connection with the purpose of your organization and trust of your stakeholders. It is the decision of the organization to choose out of the accountability and decide the ones that really matter and not just blindly comply to all. You just never know, which decision would affect your business and result in its termination.

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