Accountability: Does one size fit all? Should it?

By Cynthia MacDuff

Accountability seems to bring about collective groans amongst nonprofit employees and board members, invoking long lists of requirements that simply do not work for all agencies. But accountability does not have to be terrible if we take different pieces of accountability and customize them to fit the needs of our own agency.   

Internal accountability

Internal accountability can also be thought of as self-governance.  Self-governance is what its name implies; nonprofits are responsible for overseeing themselves and making sure they operates in sound, legal, and ethical manners.  Self-governance encompasses legal requirements, effective governance by board members, watching financials, and fundraising in a responsible manner.  According to Michael Worth in Nonprofit Management: Principles and Practice, self-governance is one way to have deeper accountability without having excessive amounts of laws and regulations imposed on nonprofits allowing nonprofits to dictate accountability that works best for each agency while following basic standards.  Nonprofits are given the autonomy to govern themselves and oversee themselves without external pressures or watchdogs. 

However, just because an agency chooses to self-govern does not mean that they are left floating alone in the vast ocean of accountability without a life vest.  Nonprofits can access a variety of resources to help provide guidance on self-governance.  These are just some of the many resources available to help nonprofits self-govern.  

Self-governance does not have to be just a collection of policies or checklists followed by staff and board members.  Internal accountability can also involve integrating ethical practices to the workplace which can help further strengthen self-governance practices such as policies and procedures.     

External accountability

According to Michael Worth, in Nonprofit Management: Principles and Practice, external accountability methods such as charity watchdogs apply their own sets of rigorous standards and evaluations on nonprofits.  Common charity watchdogs are U.S News and World Report and the Better Business Bureau Wise Giving Alliance.  Some states have even come up with their own standards for external accountability for nonprofits such as the Maryland Association of Nonprofits which offer nonprofits the opportunity to achieve a “standard of excellence.”       

To be considered accountable by external accountability groups, nonprofits are held to strict standards in the areas of how money is spent, how the organization is governed, honesty, and willingness to be transparent.  These areas are similar to those followed by self-governance methods.  The difference is that in self-governance, organizations evaluates themselves in these areas while with external accountability, charity watchdog groups evaluate nonprofits in these areas.

So why would any agency willingly submit to being evaluated by an outside group when it could self evaluate instead? Some chose this option because there are certain benefits that come with meeting the requirements of watchdog groups.  Nonprofits who are compliant with charity watchdogs can give potential donors an externally-validated peace of mind knowing that their funds will be used in a sound manner.  Organizations such as the Better Business Bureau’s Wise Giving Alliance produce annual reports listing nonprofits that meet the Standards of Charity Accountability.  This could give nonprofits a competitive edge, as some donors may be more willing to give to organizations that are listed in the annual report or have some form of accreditation.

Take an inventory of strengths and weaknesses

So now we come to the heart of the matter: is my organization demonstrating accountability? What type of accountability is my organization using? Is there room for improvement? These are just a few of the many questions we should all ask ourselves in order to get a better understanding our agencies’ accountability strengths and weaknesses.

Customize your nonprofit's accountability

I wish I could offer a “one size fits all” solution on how to make your agency truly accountable, but unfortunately “one size fits all” accountability does not exist.  Instead of offering a perfect solution I offer you this: take some time to reflect on the accountability strengths and weaknesses of your organization and take inventory of what is working for your organization and what is lacking. 

If self-governance has left some holes in your organization, consider whether borrowing components from charity watchdog groups will help fill this goal.  If your nonprofit is heavily relying on laws to dictate accountability, experiment with pieces of self-governance. Do not be afraid to prioritize in a way that makes sense for your organization.  Make accountability personal to your organization, not just by following an accountability checklist but by making accountability a part of your organizational culture that all members commit to personally.

After all, accountability should not be something you do because you are required to, but rather accountability should be one more opportunity to demonstrate the strength, successes, and impact of your organization.