|1.||Board Governance: The board is responsible for policy setting, fiscal guidance, and ongoing governance and should regularly review the organization's policies, programs, and operations. The standard specifies several subcriteria by which to assess governance, including no compensation for board service.|
|2.||Purpose: The organization's purpose, approved by the board, should be formally and specifically stated.|
|3.||Programs: The organization's activities should be consistent with its statement of purpose.|
|4.||Information: Promotion, fund-raising, and public information should describe accurately the organization's identity, purpose, programs, and financial needs.|
|5.||Financial Support and Related Activities: The board is accountable for all authorized activities generating financial support on the organization's behalf. Three subcriteria further detail this standard, including open disclosure of all program and financial information for the organization and any subsidiaries.|
|6.||Use of Funds: The organization's use of funds should reflect consideration of current and future needs and resources in planning for program continuity. Subcriteria further specify that a charity should spend at least 60 percent of its annual expenses on program activities, not have excessive fund-raising costs, maintain net assets for the following year that do not exceed twice the current year's expenses or the next year's budget (whichever is greater), and not have a significant deficit in the unrestricted fund balance.|
|7.||Annual Reporting: An annual report should be available on request and key elements are identified that should be included in such a report, including audited financial statements or a comprehensive financial summary.|
|8.||Accountability: An organization should supply on request complete financial statements; four elements of
such accountability are specified:|
|9.||Budget: The organization should prepare a detailed annual budget consistent with the major classifications in the audited financial statements; the budget should then be approved by the board.|
The NCIB standards are intended to offer a common measure of accountability and management for all charities, although young organizations (i.e., less than three years old) and those with less than US $100,000 in annual budget are granted somewhat greater leeway in meeting the standards. The NCIB monitors charities by reviewing information from a variety of documents, ranging from charities' annual reports, IRS tax returns, and audited financial statements to solicitation scripts and funder contracts. It also asks subject charities to complete disclosure forms on board and staff members and their compensation. Evaluated charities are offered an opportunity to review and respond to the NCIB's report on them.
Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Book title: International Encyclopedia of Public Policy and Administration. Volume: 3. Contributors: Jay M. Shafritz - Editor. Publisher: Westview Press. Place of publication: Boulder, CO. Publication year: 1998. Page number: 1471.
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