IFMA Foundation Governance and Oversite

Why are we doing this… Governance To ensure all documents for the Foundation are accurate, consistent, and up to date. To add legitimacy to our non-profit. To attract more philanthropic leaders across the country. To be transparent in our finances to all who wish to donate. To be accredited by the BBB.

Why is accreditation by the BBB important? Governance Why is accreditation by the BBB important? The BBB Wise Giving Alliance helps donors make informed giving decisions and promotes high standards of conduct among organizations that solicit contributions from the public. It produces reports about national charities, evaluating them against comprehensive Standards for Charity Accountability, and publishes a magazine, the Wise Giving Guide, three times a year. BBB WGA does not rank charities but rather seeks to assist donors in making informed judgments about those that solicit their support. Evaluations are done without charge to the charity and are posted for free public access on give.org.

BBB - Charting Impact project. Governance BBB - Charting Impact project. In recent years, there has been growing interest in examining the effectiveness of the charities and other nonprofits that play so important a part in American life. Charting Impact, a project developed by BBB Wise Giving Alliance, GuideStar USA, and Independent Sector, is a response to this interest. It provides a framework of five questions that organizations of all types, sizes and missions can use to describe what they want to achieve and what they have already accomplished. 1. What is your organization aiming to accomplish? 2. What are your strategies for making this happen? 3. What are your organization's capabilities for doing this? 4. How will your organization know if you are making progress? 5. What have and haven't you accomplished so far? Charting Impact was developed, tested, and refined with input from nearly 200 nonprofit and philanthropic leaders across the country.

Charting Impact Project, continued. Governance Charting Impact Project, continued. To the public, Charting Impact reports offer concise, detailed information, in a consistent format, about what individual nonprofits are aiming to accomplish. For charities, working through the Charting Impact framework can encourage them to think strategically about how they will achieve their goals. For national charities that file requested information with the BBB Wise Giving Alliance, completing Charting Impact can help a charity meet Standard 7 of BBB WGA's Standards for Charity Accountability, which calls for a charity to submit to its governing body, for its approval, a written report that outlines its performance and effectiveness.

How do we get accredited? Governance How do we get accredited? Information Needed from Charity to Determine Compliance -GOVERNANCE Articles of incorporation* Bylaws* Conflict of Interest policy* Board roster, with officers specified  EFFECTIVENESS Written board policy on performance and effectiveness assessment (Standard 6)  FINANCES Financial statements as required by Standards 11 and 12 IRS Form 990 or 990EZ, if applicable Tax exempt status determination letter* Budget for the current fiscal year

How do we get accredited, continued. Governance How do we get accredited, continued.  SOLICITATIONS AND INFORMATIONAL MATERIALS Sample solicitation and informational materials, as described under Standard 15 Annual report (Standard 16) Sample written appeals that offer opportunity to donors to state their wishes regarding use of their names and addresses (if charity shares donor names) (Standard 18) Copies of promotional materials related to cause-related marketing, if charity engages in such sales or transactions (Standard 19) Evidence, such as copies of letters, that charity has responded to complaints (if such complaints have been brought to its attention by BBB WGA and/or a BBB) (Standard 20)

BBB Wise Giving Standards. Governance BBB Wise Giving Standards. The BBB Wise Giving is measured by 20 standards. Each of the 20 standards are given a finding: A check mark – the standard is met An X – the standard is not met A question mark – unable to verify To meet these standards, the organization shall meet the following 20 points:

Governance and Oversight The governing board has the ultimate oversight authority for any charitable organization. This section of the standard seeks to ensure that the volunteer board is active, independent and free of self-dealing. 1 – Board oversight 2 – Board size 3 – Board meetings 4 – Board compensation 5 – Conflict of interest

Measuring Effectiveness Governance Measuring Effectiveness An organization should regularly assess its effectiveness in achieving its mission. This section seeks to ensure that an organization has defined, measurable goals and objectives in place and a defined process in place to evaluate the success and impact of its program(s) in fulfilling the goals and objectives of the organization and that also identifies ways to address any deficiencies. 6 - Effectiveness Policy 7 – Effectiveness Report

Finances Governance 8 – Program expenses 65% This section of the standards seeks to ensure that the charity spends its funds honestly, prudently and in accordance with statements made in fund raising appeals. 8 – Program expenses 65% 9 – Fund Raising Expenses 35% 10 – Accumulating 11 – Audit report 12 – Detailed Expense Breakdown 13 – Accurate Expense Reporting 14 – Budget Plan

Fund Raising and Informational Materials Governance Fund Raising and Informational Materials A fund raising appeal is often the only contact a donor has with a charity and may be the sole impetus for giving. This section of the standards seeks to ensure that a charity's representations to the public are accurate, complete and respectful. 15 – Accurate Materials 16 – Annual Report 17 – Website Disclosures 18 – Donor Privacy 19 – Cause Market Disclosures 20 – Complaints

And more to come… Governance the Independent Sector and Guidestar are the other two key areas where we can greatly enhance our charitable/philanthropic presence and tell our story.  These will be great additional places to send chapter and council leaders in the future to give them confidence in our charitable status.

Governance Questions?