How is non -profit responsibility ensured?
Non -profit liability is ensured by a number of compulsory and voluntary resources. Governments may require some documentation to be publicly made available and many non -profit organizations decide to make more information available. Basers often require evidence that their money was spent as they intended. Both of these goals are supported by the encouragement of the culture of transparency in the non -profit sector. For example, in the United States, many non-profit agencies have decided to comply with the regulations for publicly traded companies in US competitiveness and the 2002 responsibility Act, also called the Sarbanes-Oxley Act. Non -profit exemptions are one of the main ways that the non -profit organization saves money, and many governments require the documentation of this situation to be easily accessible to the public inspection. Depending on this non -profit organization, the same can apply to the annual tax return and other financial documents such as audits.
Audit integrity is another measure of non -profit responsibility. The external audit ensures the highest level of liability, but may not be required by law. However, many non -profit agencies perform internal audits as a way to show the public that they are responsible for their financial status. Those non-profit organizations governed by Sarbanes-Oxley ACT regulations ensure that internal auditors are members of the Board of Directors, have financial competences and are not compensated for their services. Non -profit organizations also rotate their audit team every five years and avoid lending to their executive officers.
Non -profit liability also exceeds how much money has been spent on providing services and impress expenses to maintain the integrity of the organization's mission. Many non -profit organizations collect and publish data on the nature and impact of their work. This provides a donor not only that their money is fromNon -thought, but also that the non -profit organization creates positive, specific results. True and accurate requests for funds also talk about responsibility for a non -profit agency.
Other indicators of non -profit responsibility include the existence of the Code of Ethics, the policy of conflict of interest and the strong policy of confidentiality in the organization. Sensitivity to questions or concerns is also a measure of responsibility. This applies to both the “ascending” sensitivity to the provider and the regulatory agencies, as well as the “direction” of the sensitivity to clients and the community serving the non -profit organization.