If foundations wish to continue to prosper, nonprofit advocates say, they need to adopt a series of voluntary best practices covering key areas like the number and duties of board members, fundraising, donor relations and the disbursement of money. Such uniformity is a lofty goal, however, in a community where nearly every U.S. foundation has its own playbook.
With the future of foundations a hot topic in philanthropic circles, D.C.-based Independent Sector is in the midst of hammering out just such a list of best practices. Three years ago the organization set out to build a consensus on a set of principles of self-regulation that could be adopted by foundations and other nonprofits.
“We started with something like 126 recommendations,” said Diana Aviv, Independent Sector’s president and CEO. The panel’s committee has narrowed that to 29 principles and is now in the process of gathering feedback from experts around the country.
The 29 principles cover establishing conflict of interest and whistleblower policies, how a foundation or nonprofit governs itself, how a board of directors should fulfill its oversight responsibilities and what roles such members of boards would have. The revised list of the Independent Sector’s principles of self-regulation will be posted for an extended public comment period later this month.
Getting all U.S. nonprofits to sign on to these recommendations may be tougher than it appears.
“The real issue is, how do you raise the bar a little bit above what is now required by law and set out principles that will encourage voluntary action?” asked Duke University Professor Joel L. Fleishman, author and expert on foundations. “By agreeing to these principles, not just foundations but all nonprofits will benefit, as will their donors and volunteers,” he said.
But will they come to consensus, as Aviv believes?
“All I can tell you is I hope so,” Fleishman told The Examiner. “I think they can be persuaded to do it, because it is so clearly in everyone’s interest to do it.”
Have information about area nonprofits? Contact Frank Sietzen at [email protected].
