To uphold the public’s trust in the nonprofit sector, a charity should at a minimum carry out its actions in accordance with Minnesota and federal charity law.

An annual report that includes:

• a description of the organization’s purpose,
• a description of its program activities, accomplishments and geographic area served,
• a summary of the total cost of each major program (to the extent required in the IRS Form 990), and
• a list of the organization’s board of directors.

Annual financial statements prepared in conformance with generally accepted accounting principles, and audited when required by federal or state law or contracts to which the organization is a party.

The Council believes that providing complete information to prospective donors promotes informed, responsible philanthropy.

Standard:  Through the annual report or other communications available to donors, the organization provides specific, objective information about its accomplishments related to its stated mission.

The Council believes that inconsistencies among a charity’s programs, activities and financial information as described in its annual report, audited financial statements and IRS Form 990 prevent donors from meaningfully evaluating the charity’s programs and effectiveness.