PODCAST: Fiduciary Duties of Today’s Nonprofits

Published on: 03/08/2018 By: Gorfine, Schiller & Gardyn

In the following podcast, Scott Rodgville discusses why conveying the quality of transparency is essential for nonprofit organizations, and more.

Board members serving nonprofit organizations have much to consider when operating their respective businesses. Considering these responsibilities so carefully does not only serve the organization well internally, but also because doing so makes transparency between the organization and the public possible.

Transparency is of utmost importance for nonprofits because people would rather put their money in an organization they understand as opposed to one they cannot. There are countless nonprofits that people could devote their resources to, and something as simple as disclosing your adherence to federal or state guidelines could help set your organization apart and present a more encouraging call to action.

However, there is more to transparency than displaying adherence to government standards. How are you gaining favor with the public? For example, are you prepared to field tough questions about your nonprofit’s governance? Are you positioning yourself properly to perform for the benefit of a nonprofit versus your personal gain? If so, how can you convey these answers to a public that may scrutinize an organization that struggles to answer these questions otherwise?

Maintaining and advancing your organization also hinges on understanding the current political climate. New tax laws that are set to raise standard deductions and limit local tax deductions present a potential threat to core revenue sources for nonprofits. With this in mind, having and generating future income is especially encouraged because of the new costs of doing business set to take place.

To coincide with that mindset of emphasizing income, nonprofits would do well to instead think of themselves as tax-exempt organizations. “Not-for-profit” implies that businesses may not be planning to budget as much money away for future investments. Having the foresight to put money away presently reduces the need to campaign for money, something that may potentially rub donors wrong over time.

For more information about the multiple fiduciary responsibilities for nonprofits, contact our nonprofit team today.

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