Tag Archives: board of directors

Nonprofit Compliance Problems & Solutions

Five Business Executives In a Conference Room Meeting

The Better Business Bureau Wise Giving Alliance released a list of top nonprofit compliance problems and failures under its 20 Standards for Charity Accountability. (Thanks to Grant Williams at The Chronicle of Philanthropy for his coverage of the BBB announcement.)

The most common problems fall under transparency, accountability and board inactivity. These are among the areas of focus for the IRS and states, as I explained in a post on the corporatization of nonprofits.

The solution is educating board members about what’s required and what their role is in compliance with federal and state standards. The Better Business Bureau will be satisfied. The UJA-Federation of New York has a program that teaches young people the responsibilities of board membership, and there’s at least one similar program in the Jewish community. I hope the students get on boards fast, so these 20- and 30-somethings can teach the 60- and 70-somethings some important lessons.

Attention board members: Compliance issues are critical and you are responsible!

Is there something you’d like to say to a board? Do you know of similar youth training programs?