Nonprofit Sector Non-Self-Regulation

<ed.note>Still no mention of xml or xbrl or universal charts of account. The appearance of transparency without the power of it. No apples to apples peer comparisons to determine which programs are efficient or wasteful. According to ModernHealthcare: "An Internal Revenue Service inquiry into not-for-profits’ executive compensation found widespread disclosure errors and raised “considerable concern” about loans to directors, officers and key employees, according to a summary of the findings. Of the roughly 1,200 tax-exempt organizations initially surveyed by IRS, including hospitals and health systems, more than 30% were required to amend annual IRS filings, the Form 990. The initiative, under way since 2004, included a second wave of closer examinations for 782 tax-exempt organizations, which resulted in proposed penalties totaling more than $21 million against 40 individuals or not-for-profit subsidiaries for excessive compensation or failure to properly report pay, largely among private foundations. Of the second raft of examinations, 10% remain open."</ed.note>

On 2/28/07, Panel on the Nonprofit Sector <info@nonprofitpanel.org> wrote:

Read the second draft of the principles on self-regulation.

We are pleased to report that the Panel has posted on its website the second draft of the principles for effective practices developed by its Advisory Committee on Self-Regulation. It is now seeking comments on the second draft from a broad audience.

Nearly a year ago, the Panel on the Nonprofit Sector appointed a special Advisory Committee on Self-Regulation to assist in developing recommendations for strengthening the self-regulation of charitable organizations. Last month the Panel called for comments on the initial draft of the principles, which the Advisory Committee created after examining more than 50 self-regulation and accreditation systems that monitor different types of charitable organizations. Members of the nonprofit community responded with more than 125 comments, and the committee and the Panel utilized them extensively as they revised the principles.

Because of the value of the those earlier suggestions, the committee now invites you and others in our community to comment on the second draft of the principles, which are posted on the Panel’s website. The committee will be considering all comments submitted by March 30, 2007, before making its final recommendations to the Panel. The Panel will consider the committee’s proposals and issue its report on strengthening self-regulation in the nonprofit community in late Spring 2007.

We look forward to hearing from the many voices in the field commited to improving practice in the nonprofit community.

Sincerely,
Diana Aviv
Executive Director, Panel on the Nonprofit Sector
President and CEO, Independent Sector
Panel on the Nonprofit Sector, 1200 Eighteenth Street, NW, Suite 200
Washington, DC 20036 | 202-467-6120 phone | 202-467-6101 fax
www.NonprofitPanel.org