Comments on: How Much is This Dollar Worth?

By: Measuring New Criteria for Nonprofit Effectiveness « Red Rooster Group

Measuring New Criteria for Nonprofit Effectiveness « Red Rooster Group — Wed, 22 Sep 2010 03:17:05 +0000

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By: Howard Adam Levy

Howard Adam Levy — Tue, 20 Oct 2009 21:59:43 +0000

The general financial malfeasance, starting with Enron several years ago and the current meltdown of the financial market has brought increased scrutiny on governance and fiscal accountability to both the corporations and nonprofits. High profile financial scandals in the nonprofit sector (United Way), have not helped the trustworthiness of the sector, and in fact, invited more government oversight (such as the new 990).

I am not against financial transparency – that is good for everyone – but along with it, must come education about the realities of the cost of running a nonprofit. And that’s something that nonprofits need to step up to the plate to address in communications with their donors and advocacy to the government.

I think you would be interested in this excellent, well researched article called The Nonprofit Starvation Cycle:
http://www.ssireview.org/articles/entry/the_nonprofit_starvation_cycle

By: Howard Adam Levy

Howard Adam Levy — Tue, 20 Oct 2009 21:57:55 +0000

A reader from Vancouver emailed me with this:

Thanks. Not a new issue although it has become one of greater concern in recent years due to Guidestar and Charity Navigator. Canada is now moving in the direction in terms of disclosure by nonprofits of additional information in the annual return that will inevitably lead to similar comparative sites springing up on this side of the border.