Financial transparency in the nonprofit community has been a major talking point for several years. Advances in technology, and a focus on fraud continue to raise donor expectations on the subject. They not only want confirmation that their donations are being utilized to assist the causes they are passionate about, they also want to know that your organization is honest and stable.
Financial Transparency “means making information as accessible as possible” and that the foundation is “being honest about it’s performance, even when it is subpar.” It relates to how open the foundation is to willingly offer financial information to the public.
A transparent organization voluntarily allows their financial, operational, and program documents to be inspected by the public. This requires the foundation adopts clear accounting methods and record keeping, adheres to state regulations that govern nonprofit organizations, and submits reporting documents in a timely, efficient manner.
Reports 2017 – Link