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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