In my last blog, I mentioned the need for more honest reporting by non-profits rather than more ethical reporting. This is an area of concern. While an investor in a corporation has an expectation for a dividend in every dollar invested, this may differ as there may be no tangible return for a donor in some cases.
Whilst non-profits are formed for “a certain good” and/or to fill in a gap in society, they are not are not exempt from honest behavior since there “shareholders” are their donors and they are the stewards. How then does a donor, satisfy his/her ….. in ascertaining that the donation was used in accordance to his/her wishes? In many cases the donor may actually get to see the program that he/she is donating too, but in cases where the programs are out of the reach of the donor than he/she will have to rely on the information available in the frequent information mailed or available in the website.
However would the donor not be more satisfied if he/she new that the resources are being spent honestly. At times we prefer to provide a blurred picture of the books of accounts rather than an honest one. We are afraid that when we tell donors that we need more computers to work more efficiently, they will not make the donations and therefore we only push for the programs expansion. How will non profits be better stewards if they do not have the tools to run the programs? Should non profits spend more resources fixing and repairing their tools because they do not have enough to acquire better if not new equipment?
How honest are you when it comes to filling in the time sheet? How often do you carry the office highlighter home to use it on an office project and fail to return it to the office? As a manager how often do you change your time sheets in order to help the bottom line while the financial reports are being done? Do you take more hours for lunch then your colleagues because you are a exempt?
There are no shareholders meeting to review the books, though a donors meeting would not be a bad start. After all how does the donor who gives $1 a month have a voice compared to one who gives $10,000 and get to sit in the board meetings.
How honest we are with our resources? The more honest we are the more we can be entrusted with more. It’s a biblical principle and it works. Try it out in your organization. That's the trick.Honesty.
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