Here’s the setting. It’s Sunday night. Nearly 7:30 pm (EDT) as I start on this ‘stream of consciousness’ article – and – I confess, I am worried about where ‘we’ are going from here. Frankly, it is not within my bounds to worry so much about the collective ‘we’ but, rather, my focus is on the area in which I believe I can make a difference: The Non-Profit Sector.

I believe the non-profit sector holds the keys to our future success. See my earlier articles on www.cega.com. When compared with the governmental sector and the business sector, only the non-profits have the mission – and, I would add, the responsibility – to focus on solutions to specific problems.

Where are the non-profits (overall) just now? Well, I have been overwhelmed with cries about Acorn, comments about a non-profit who failed to submit its IRS Form 990 for the past 3 years, and tracking the actions of a major non-profit who is acting, for the entire world to see, as if it were a for-profit with no non-profit guidelines in which to adhere.

What are ‘we’ (those of us who are dedicated to the non-profit sector) to do? Well, as a number of folks in leadership positions have indicated: it’s time to ‘call people out when they are wrong’ – and, to be honest, many in the non-profit sector are so far out of touch in the lives of most people I am not clear how they can best be helped. But, I remain convinced that the non-profit sector stands to play a major role in our future as a nation, so I am committed to doing all I can to make the issues known, solvable, and REAL.

The title of this article is simplistic: Accountability. It’s a major issue. One of three that I strongly believe in: Ethics, Governance, and Accountability.

What distinguishes the notion of ‘accountability’ as a concept from ‘accountability’ as a function? I would say, quite simply, concept without function is useless; function requires action. So, accountability requires a pro-active commitment from the board.

Well, sadly to say, the ‘case studies’ regarding non-profit problems – serious problems – are plentiful and well-publicized. Any non-profit executive director or any non-profit board member can easily learn from the mistakes of others. All it takes is commitment to excellence on the part of the board member.

Current examples include: learning that a non-profit did not file its IRS Form 990 for THREE years leaves me a bit speechless! How would anyone associated with that non-profit organization begin to explain how such a thing could be allowed to happen? The IRS has a very good reminder system. I’ve never personally seen the paper flow that must occur when a non-profit fails to file for three years in a row, but I would think the measure would be in ‘pounds’ instead of individual notices!

QUESTION #1: Where in the world was the executive director in this mishap?

QUESTION #2: Where in the world was the non-profit’s board?

It is this kind of sloppiness that is plaguing the non-profit community and giving the good ones a bad name. The small non-profit organizations stand to suffer the most. Remember that a non-profit receives its charitable status because it has proved in its filing to the IRS that it offers a community benefit. Sadly, when a nonprofit ‘crashes and burns’ it is the community, by definition, that is left to suffer. As these recent high-profile examples indicate, the IRS is not able to police all non-profit organizations, so responsibility and accountability are required by each non-profit board.

I am still strongly of the opinion that a pro-active non-profit organization, striving for excellence, receiving certification that it stands apart from its peer group, has a competitive advantage in today’s marketplace.

The answers to the two questions posed above should be simple. It is unfortunate that those answers are apparently not so simple for too many non-profit organizations. I would suggest that any individual that cannot get the basics – Accountability 101 – should not serve as either an executive director or a board member. Certain knowledge is requisite for the positions of board member or executive director. If you do not have it, you should not be allowed to serve.