Piper Newsletter - March 2006
Diana Aviv Discusses Strengthening Boards, Accountability at Piper Academy
As Congress looks into issues of accountability and governance of charitable organizations, nonprofits need to strengthen their boards and improve their governance policies now, according to Diana Aviv, president and CEO of Independent Sector and executive director of the Panel on the Nonprofit Sector.
Aviv spoke to an audience of more than 200 at a Piper Academy in January 2006, emphasizing that accountability is at the heart of most nonprofits, but that not all nonprofit leaders or board members are aware of governance best practices.
“Few are more concerned about accountability than the charitable sector, because we depend on the trust of the American people,” Aviv observed during her energetic and engaging presentation. “Governance is the responsibility of the sector. Changes are coming, and it’s important that we remain in front of these changes.”
To help nonprofits focus on key areas recommended by the Panel on the Nonprofit Sector, the Piper Trust has outlined eight recommended best practices for nonprofits. These include financial audit guidelines, conflict of interest statements and travel policies. Nonprofits applying for Trust grants in 2006 are encouraged to have these practices and policies in place. Beginning in January 2007, the Trust will expect any organization applying to have enacted these best practices.
“It’s not surprising that the nonprofit sector has drawn attention,” Aviv remarked, noting that the combined assets of nonprofits in this country are the same size as the federal budget – more than $2 trillion. “We are a sector of enormous impact and significance.”
The Panel on the Nonprofit Sector, which is made up of charitable and philanthropic leaders, worked for nine months to come up with 120 recommended actions to be taken by nonprofits, Congress and the IRS to strengthen the sector’s transparency, governance and accountability.
Congress’ reaction to the panel’s recommendations has been overwhelmingly positive, and the work of the panel has significantly changed the proposed federal legislation, according to Aviv.
For more information about the Panel on the Nonprofit Sector and Independent Sector, visit www.independentsector.org. For resources on strengthening governance in your organization, visit www.boardsource.org.