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Introduction to the Standards for Excellence®
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Welcome to an Overview of the Standards for Excellence®
Agenda:Accountability, Management, and Self-RegulationThe Standards for Excellence CodeThe Standards for Excellence InstituteResources Available for ImplementationEarning the Seal of ExcellenceQuestions / Answers
Why Care about Ethics and Accountability?
Public Opinion
Competition for Funding
Federal and State Legislation
Public Opinion
Public OpinionConfidence / Expectations in Nonprofits
History of scandals (tax tricks)Disconnect between opinions about quality of service
versus quality of organizations
Questions about who to support?
Americans are Active Donors, Volunteers, and Advocates
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There are 209,128,094 adults in the U.S. who are 18 or older.*
Approximately 163, 119, 913 or 78% of adults volunteer, donate or advocate with a philanthropic organization.**
*Source: 2000 U.S. Census**Calculation based on 2008 DonorPulse Data;Categories are not mutually exclusive
*citation: “Harris Interactive Donor Pulse WebinarFebruary 24 2009. Donor Pulse http://www.HarrisInteractiveDonorPulse_SocialMedia_22409GEN.pdf
Nonprofit Engagement
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*citation: “Harris Interactive Donor Pulse WebinarFebruary 24 2009. Donor Pulse http://www.HarrisInteractiveDonorPulse_SocialMedia_22409GEN.pdf
Among the adult general population: 42% Volunteered in the past year 72% Donated in the past year
Low Spending donors: Less than $1000 (72%)Medium spending donors: Between $1000-$5000 (21%)High spending donors: $5000 + (7%)
50% Advocated in the past year, people who look at least one action to express their opinion about an issue. More engaged adults have higher favorability and views of sector (perhaps because they have made a bigger investment in the sector)
Charity research performed by donors, what they care about,
and want
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*citation: “Wise Giving? Most Donors Spend Little Time Researching Charities.”June 29 2010. Hope Consulting. http://www.hopeconsulting.us/money-for-good
35% of donors in 2009 did research before their donation 65% did none at all
Charity research performed by donors,
what they care about, and want
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56% who did research spent an hour or less 44% only looked at simple facts and figures
*citation: “Wise Giving? Most Donors Spend Little Time Researching Charities.”June 29 2010. Hope Consulting. http://www.hopeconsulting.us/money-for-good
Charity research performed by donors, what they care about, and
want
10 15% want a full report 85% care about nonprofit performance
*citation: “Wise Giving? Most Donors Spend Little Time Researching Charities.”June 29 2010. Hope Consulting. http://www.hopeconsulting.us/money-for-good
Adjusting their Giving
60% will change their giving if nonprofits do a better job on areas important to the donors.
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*citation: “Wise Giving? Most Donors Spend Little Time Researching Charities.”June 29 2010. Hope Consulting. http://www.hopeconsulting.us/money-for-good
Public Opinion
Public Opinion In general, do you think the nonprofit sector in America is
on the right track or has pretty seriously gotten off in the wrong direction?
37% Right Track
22% Wrong Track
37% Not Sure
Question asked of US Adults who volunteered, donated or advocated in the past 12 monthsHarris Interactive, Donor PulseFebruary 2009
Public Opinion
Public Opinion Based on what you know, please rate your agreement with
the following statement: Most charitable organizations are honest and ethical in their use of donated funds.
64% Strongly agree or somewhat agree
22% Somewhat or strongly disagree
14% Neutral
Question asked of US Adults who volunteered, donated or advocated in the past 12 monthsHarris Interactive, Donor PulseFebruary 2009
Competition for Funding
Increase in the Number of Nonprofits
In 1998 there were about 1.1 million nonprofit organizations
In 2010 there were over 1.5 million registered nonprofit organizations
registered in the United States.
Source: National Center for Charitable Statistics
Federal and State Regulatory Scrutiny
US Senate Committee on FinanceHearings on Charity Oversight and Reform
US House of Representatives Committee on Ways and MeansHearings on the Tax Exempt Sector
Internal Revenue Service Joint Committee for Purchase/JWOD State Attorneys General, proposals in 19 states
Why Care about Ethics and Accountability?
Public Opinion Easily swayed / high expectations / Limited confidenceLooking for easy answers
Competition for Funding How do you set yourself apart?
Federal and State Regulatory ScrutinyDemonstrate the ability to self regulate
21%
49%
54%
48%
78%
86%
68%
81%
0% 20% 40% 60% 80% 100%
Have ConflictPolicy
Provide FinancialInfo
Publish AnnualReport
Systems toEvaluate
Performance
Actual Performance Expectations
Why Care about Good Governance & Management
Standards for ExcellenceA History
1996: Volunteers started developing the code
1998: Maryland Association of Nonprofits Launched its own Standards for Excellence Program
2001: Began replicating the project nationally
2004: Launch of the Standards for Excellence Institute
2005: Launch of National Standards certification program
2007: First organizations to earn the Seal of Excellence through the Standards for Excellence
Institute
Standards for Excellence®
Standards for ExcellenceWhat are They?
8 Guiding Principles and 55 Benchmarks Mission and Program Governing Body Conflict of Interest Financial and Legal Human Resources Openness Fundraising Public Affairs and Public Policy
Assess Your Organization Against the Standards Code
Self Assessment Checklist
Mission and Program
Defined Mission Statement
Evaluation
Program Service Standards
Governing Body
Roles and Responsibilities
Board Composition
Board Conduct
Conflict of Interest
Disclose Everything
Define Interested Parties
How Decisions Are Made?Conflict of Interest
PolicyConflict of Interest
StatementDisclosure Forms
Human Resources
Personnel Policies
Volunteer Policies
Employee Evaluation
Employee Orientation
Financial and Legal
Budgets
Audits
Financial Reports
Financial Impropriety
Written Financial Policies
Legal Compliance
Openness
Annual ReportsBoard Key StaffFinancial DataProgram DataMission
Public Access
Fundraising
Fundraising Activities
Donor Relations/Privacy
Acceptance of Gifts
Fundraising Personnel
Public Affairs and Public Policy
Public Policy Advocacy
Public Education
Promoting Public Participation
Standards for Excellence An Organizational Tool
A model for nonprofit organizations to implement accountability in their management & governance practices
A framework with a clear statement of the organization’s commitment to best practices
A self-regulatory tool to ensure public confidence and public support
A demonstration of the organization's commitment to public service
Most Challenging Benchmarks
Conflict of Interest Policy/Statements (61%)
Program Evaluation (55%)
Advocacy Policy (51%)
Confidential Means to Report Impropriety (47%)
Financial Policies (46%)
Gift Acceptance Policy (43%)
Board Development (39%)
Employee Orientation (39%)
Internal Review of Legal, Regulatory Requirements (36%)
Educational materials specifically focused on the Standards For Excellence® code
MOST ED PACKETS REVISED IN 2008-2009 Direct technical assistance Standards for Excellence® specific seminars Other topical training seminars
Providing the Help You Need
Voluntary Implementation and Certification Program
Implementation process is an opportunity to learn about and clarify organizational practices and behavior
Application process coordinated through the Standards for Excellence InstituteStaff assisted Peer Review ProcessApproved organizations licensed to display the
Standards for Excellence seal
Introducing: Tiered recognition
• Easier to navigate
• Go at your own pace
• Start at level one or three
• Each tier builds on the previous!
Tier One: Essentials
Adherence to Basic Legal, Regulatory, and Governance Practices
Benefits Lower initial cost Responsive to limited time and resources Formally recognizes achievement and your
organization’s progress towards full Standards for Excellence certification.
Informal recommendations from program staff for future improvement and application to next tier.
Tier One: Essentials
Application process Submission of the Tier One application
package and checklist and application fee. Completion of a free online self-
assessment and orientation is also required.
Program staff will complete the formal review of the application.
Organizations can remain at this tier for a term of three years
Tier Two: Enhanced
Enhancing the Foundations of Nonprofit Management and Governance
Benefits Discounts for quickly moving through the tiers. Ability to state completion of the Standards for
Excellence Enhanced Tier. Additional informal recommendations from
program staff for future improvement and application to next tier.
Tier Two: Enhanced
Application Process Prior completion of Tier One. Submission of the Tier Two application
package and checklist and application fee. Completion of the free online self-
assessment. Program staff will complete the formal review
process, with final approval by the Ethics Standards Committee.
Organizations can remain at this tier for a term of 3 years
Tier Three: Certified
Standards for Excellence Seal Holder All 55 Standards are included in the third tier Benefits
Earn and display the Seal of Excellence State that their organization is “Certified Under the
Standards for Excellence”, “Awarded Standards for Excellence Seal”, or “Approved Under Standards for Excellence” or “is a Standards for Excellence® Accredited Organization.”
Tier Three: Certified
Application Process Can apply directly for Tier Three, or previously complete
both Tiers One and Two. Submission of the application package and checklist and
application fee.
Review Process Program staff will first review the application. Anonymous peer reviews will evaluate the application
second. Lastly, the Ethics Standards Committee must approve the
staff and peer reviewers’ recommendation for certification.
The Standards for Excellence certification will be awarded for three years.
How do organizations earn the Seal?
Application Submitted to
TheStandardsInstitute
Is the application complete?
Undergo 2nd review by
Peer Reviewers
Have the Standards been
met?
Undergo 3rd review by
Ethics Standards Committee
Should this organization be
approved?
Phase I Phase II Phase III
Standards for Excellence® Replication Partners 2011
Questions and Answers
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