Problem:
Write one additional question for each of the categories (board, staff, donors and fund raisers, clients/customers, volunteers, society) listed in the sample audit. Explain why each question is important assessing and organizations ethical performance.
Board:
- Has the board developed a clear mission statement?
- Does the board use the mission statement as a basis for decision-making? If you are a foundation, do your grants fall clearly within your mission and funding guidelines?
- Do all board members know what the mission statement says?
- Is the board clear about its responsibilities?
- Is there adequate financial oversight?
- If board members have financial interests in the organization, how is this handled?
- If there are significant family, personal or business relationships between people in the organization, are there clear policies for addressing problems that may occur?
- Does the board have clear policies for dealing with conflicts of interest of all types?
- Is there a clear values statement and/or code of ethics? Is it known to everyone in the organization?
- Does the board meet regularly?
- Do all board members take an active role? Are there clear policies in place to dismiss members who repeatedly miss meetings or who otherwise fail to carry out their responsibilities?
- Is the board the right size to carry out its responsibilities? Has its size been discussed?
- Is free expression of ideas encouraged?
- Does the board assess its own performance regularly?
- Does the board use a clearly-defined process to evaluate the executive director?
- Does the board reflect the diversity of the population served?
- Are board meetings open to other people beside the directors?
Staff:
- Do hiring policies strive to reflect the diversity of the population served?
- Is there a formal anti-discrimination policy?
- Do any staff members have financial interests in the organization?
- If there are significant family, personal or business relationships between people in the organization, are there clear policies for addressing problems that may occur?
- If employees work outside the organization or receive remuneration for speaking engagements, consulting, etc., how is this handled?
- Are policies in place to ensure accountability to the CEO and board?
- Do the personnel policies ensure fairness to all staff ?
- Beyond fairness, do personnel policies provide adequate health care, sick leave, leave to care for sick relatives, etc.?
- Are there clear policies in place for evaluating staff ?
- Are there clear policies in place for developing a salary structure and awarding pay increases?
- Are employees provided with adequate training and development opportunities needed for their jobs?
- How do staff voice disagreements? Are there clear and reasonable grievance procedures?
- How are staff represented on or to the board?
- Is the work place as safe, clean and comfortable as possible?
Donors and Fund Raisers:
- Are all fund raising statements true and balanced?
- Does fund raising material provide a clear picture of actual programs?
- Are people who raise funds on your behalf fully informed about the organization?
- Might any of your solicitation methods be considered as unwarranted pressure to give?
- Is full information on your organization easily available to anyone who asks? (e.g., annual report, IRS Form 990 or 990 PF, financial statements, and clear funding guidelines for prospective grantees.)
- Do you educate your donors on the availability of this information? If you are a foundation, are staff or trustees available to answer questions and provide guidance?
- If you are a foundation, do you provide equal access to groups you know as well as to those who are newcomers? Does your giving include grass roots organizations and a healthy diversity of beneficiary agencies within your funding guidelines?
- What is the ratio of fund raising/administrative costs to program costs?
- How are fund raising and administrative costs allocated?
- Are you up-front with donors about how their contribution will be used? Do budgets submitted to donors reflect true figures and realistic projections?
- If priorities/needs change, do you request donor permission to use their contribution/ grant in a different way from the original stated purpose? If you are a donor, how flexible are you when nonprofits encounter changes in needs/priorities or difficulties in meeting grant agreements?
- How are your organization’s development staff compensated?
- Are there clear policies on how donors may be recognized for their contributions?
- Is there a formal fund raising policy defining how and from whom funds are to be solicited?
- Do you honor donor requests for anonymity (including exchange of lists)?
Clients/Customers:
- Are policies in place to ensure confidentiality for clients?- When information on clients is exchanged with other agencies, are clients asked for permission? How is this handled?
- Are clients given access to their records so that they may challenge or correct information on file?
- What policies are in place regarding social/sexual relationships between clients and staff ?
- Are clients treated with dignity and respect?
- Are clients provided with adequate information to evaluate and choose appropriate services?
- Are clients fully and fairly informed of alternative services?
- Are there adequate grievance procedures for clients who may be dissatisfied with services provided?
- Are program services available without discrimination? (Obviously, certain programs are targeted to specific groups; within those target groups, are services distributed fairly?)
- Are programs accessible to clients (location, hours of operation, physical access to the building)?
- Is information available in other languages, Braille or a recording, when necessary?
- How do you balance the rights of clients with the rights of staff/volunteers?
Volunteers:
- Are policies in place to ensure adequate, appropriate screening of volunteers?
- Are all volunteers screened in the same way, including board members?
- Are all volunteers provided with training and appropriate supervision?
- Are your organization’s expectations made clear to the volunteer?
- Are the volunteer’s expectations clearly understood by the organization?
- Are volunteers assigned meaningful work?
- Are volunteers treated with dignity and respect?
- Is there a clear grievance procedure for volunteers?
- How are volunteers held accountable to the organization?
- Are policies in place for warning, dismissing, or reassigning volunteers who break agency rules or do not perform assignments as agreed?
- Are clear policies in place regarding volunteer recognition and reward?
- Are policies in place regarding reimbursement for expenses incurred in volunteer duties?
- Has the organization determined the type of volunteers necessary for its operation and made plans to recruit them?
Society:
- Does your organization take adequate steps to educate the public about its programs and services?
- Does your organization provide full information about itself to any member of the public, not just to organizational donors and members?
- Is your organization sensitive and responsive to the needs and concerns of the neighborhood and community?
- Within allowable guidelines, does your organization do all it can to advocate for legislation and social change consistent with its mission?
- Does your organization employ ecologically beneficial practices, such as recycling, minimal use of electricity, etc.?
- Does your organization act with respect toward other organizations in the nonprofit sector?
- Does your organization conduct itself in ways that enhance the reputation of the nonprofit sector?
- Does your organization assume some share of responsibility for the well-being of the entire nonprofit sector?
- How does your organization handle competition with other nonprofit organizations?