The Accountability Standards are the heart of the Accountability Wizard, which is used to conduct charity reviews.  The Council’s Accountability Standards are being revised this year in order to continue to strengthen the nonprofit sector and mobilize informed donors.

“The current Accountability Standards were introduced in1998,” said Rich Cowles, executive director of the Charities Review Council.  “The new Accountability Standards will reflect the important economic, demographic, legal and societal changes that have occurred over the past decade.”

One of the biggest changes increases the allowable percentage of funds nonprofits spend on administration and fundraising.  The current Standards require that 70 percent of a nonprofit's expenses be spent on program.  The Council is now recommending that nonprofits explain to donors why their program expense ratios are in the 60 to 70 percent or 90 to 100 percent ranges in order to allow nonprofits to build a solid foundation for their long-term viability.

“Donors naturally want their contributions to be used to further an organization’s mission,” said Cowles.  “However, areas like strategic planning, technology, office infrastructure, board development, and leadership training are all necessary expenses for most nonprofits, and do in fact improve an organization's ability to further its mission in the long term, and help it gain the revenue it needs to thrive.”

The new Standards will continue to help donors make giving decisions and trust that selected charities will use their donations wisely.  They also will help ensure those charities will be around for the long-haul.  Other changes to the Standards include a call for nonprofits to pay attention to donor privacy and security as well as executive compensation and increasing the maximum unrestricted new assets from two to three times its yearly expenses and increasing board meeting requirements from three to four meetings per year.

“The revision process was intensive and involved feedback from donors, institutional funders, academics and nonprofit leaders.  The result is a fair set of Standards that are sensitive to a wide variety of constituents balancing regulatory requirements, sound practices and donor concerns” said Martin Wera, the nonprofit services manager at the Charities Review Council.  “We invite the public to comment and leave feedback on the proposed Standards revisions as the Council will be reviewing feedback before making final changes.”

The Charities Review Council’s Annual Forum will take place on Wednesday, June 17, 2009 from noon to 1 p.m. at the Midland Hills Country Club in Roseville, Minn.  Tickets are $50 each and seats are limited.  The featured keynote speaker will be Phil Buchanan, president of the Center for Effective Philanthropy.  Mr. Buchanan will address the need for foundation and nonprofit leaders to increase their effectiveness and become more accountable.

For more information on the Annual Forum or to register online, please visit: www.SmartGivers.org/AnnualForum2009.

For more information, visit the Charities Review Council online at www.smartgivers.org, or call (651) 224-7030 or toll-free 1-800-733-GIVE.