A. Michael Gellman
A. Michael Gellman, CPA, CGMA, is a financial strategist who cofounded Sustainability Education 4 Nonprofits.
An association culture that puts great value on transparency will boost trust and confidence among stakeholders ranging from the board to staff to at-large members to the general public.
A common thread among high-performing nonprofit organizations is having a culture that embraces transparency. You can feel it from the moment you walk in the room. It will be fully on display through comportment at board meetings, how the organization generally conducts business, how staff and management carry themselves and, most important, how it is evident in everyday decision making.
When organizations embrace transparency, they project to both insiders and outsiders a heightened sense of trust and confidence. These two values, trust and confidence, are what people will feel and remember about an organization as the details of individual interactions fade over time.
There are many fiscal and financial benefits to be realized when your organization has a culture of embracing transparency. These fiscal and financial benefits will heighten the sense of trust and confidence an organization so directly needs to maintain and project to staff, leadership, members, donors, and the general public.
When organizations embrace transparency, they project to both insiders and outsiders a heightened sense of trust and confidence.
The over-arching fiscal benefits are derived from projecting a sense that your organization is well managed, that it is appreciative of member and donor financial support, and that it honors its commitments to safeguard and use these funds wisely. Also, the organization has a diverse board of directors and governance structure that will ensure resources are put to the best use to advance mission and sustainability.
The over-arching financial benefits come from having accounting systems, policies and procedures, and governance structures that honor and adhere to transparency best practices and safeguarding assets, including:
The following list gives you a better sense of the fiscal versus financial aspects of transparency and how they both complement and support a vibrant culture of embracing transparency:
Fiscal.
Financial.
These individual elements, polices, best practices, and systems represent some of the more visible components that will enhance your culture of transparency and project a sense of trust and confidence of a well-managed and on-mission organization.