PLATFORM : Charities Must Adhere to a Higher Standard

Ethics is emerging as an issue of paramount concern. This applies not only to political candidates and business executives, but to those of us in the nonprofit sector as well. Today, nonprofit organizations must remind themselves that their operations are held up to higher standards than ever before, and that charitable contributions are voluntary and dependent upon the goodwill of individuals.

The issue takes on even greater significance in these recessionary times, when people have fewer discretionary dollars, and in light of the tremendous growth of the nonprofit sector and the increased competition for dollars. In fact, in the past year alone, 2,100 nonprofit organizations have surfaced in Los Angeles County.

This competitive environment has further increased the demand for results-driven, value-added services to the communities they serve. Nonprofit organizations, like for-profit businesses, need to be very mindful of their efficiency. United Ways across the country continue to be some of the most cost-efficient organizations around. Locally, 83 cents of every dollar collected goes directly to help support critical services in local communities. The other 17 cents, less than half of that recommended by the National Charities Information Bureau, goes not only to overhead and fund-raising but also to programs designed to enhance the quality of life and solve community problems.

The principle of accountability is integral to all nonprofit organizations. Our industry depends upon the goodwill of our contributors, and upon developing relationships of trust and confidence. Good deeds, glamorous public figures and even innovative programs are worth little if this basic ingredient is lacking. Accountability must be the backbone of every nonprofit organization.