Role in Society:
Nonprofit organizations provide unique opportunities for individuals to combine their energy,
talents and values for community improvement and enrichment. Nonprofits are obligated to
understand their role as entities that engage and inspire individuals and communities for public
benefit, and to conduct their activities with transparency, integrity and accountability.
Governance:
A nonprofit’s board of directors is responsible for defining the organization’s mission and for
providing overall leadership and strategic direction to the organization. Each nonprofit board
should: 1) actively set policy and ensure that the organization has adequate resources to carry
out its mission; 2) provide direct oversight and direction for the executive director and be
responsible for evaluating his/her performance; and 3) evaluate its own effectiveness as a
governing body, as a group of volunteers, and as representatives of the community in upholding
the public interest served by the organization.
Planning:
Organizational planning sets the overall direction, activities and strategies a nonprofit employs to
fulfill its mission. Nonprofits have a duty to engage in sound planning, define a clear vision for
the future, and specify strategies, goals and objectives for plan implementation. Planning should
incorporate input from constituents and should be intentional and ongoing to successfully
position the organization to achieve its goals.
Transparency and Accountability:
Nonprofits have an ethical obligation to their constituents and the public to conduct their
activities with accountability and transparency. Nonprofits should regularly and openly convey
information to the public about their mission, activities, accomplishments and decision-making
processes. Information from a nonprofit organization should be easily accessible to the public and
should create external visibility, public understanding and trust in the organization.
Fundraising:
Nonprofit organizations provide opportunities for individuals and institutions to voluntarily
contribute to causes of their choosing. Nonprofit fundraising should be conducted according to
the highest ethical standards with regard to solicitation, acceptance, recording, reporting and use
of funds. Nonprofits should adopt clear policies for fundraising activities to ensure responsible use
of funds and open, transparent communication with contributors and other constituents.
Financial Management:
Nonprofits have an obligation to act as responsible stewards in managing their financial
resources. Nonprofits must comply with all legal financial requirements and should adhere to
sound accounting principles that produce reliable financial information, ensure fiscal responsibility
and build public trust. Nonprofits should use their financial resources to accomplish their missions
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The Florida Association of Nonprofit Organizations 7480 Fairway Drive, #205, Miami Lakes, Florida, 33014 305. 557. 1764
© 2013
Principles and Practices for Florida Nonprofit Excellence
