Why not disclosure for nonprofits?
From the Feb. 7-20 issue of NHBR, the article, “Disclosure for corporations, why not politics?” was a good one, but why not take it a step further and expand it to “Why not nonprofits?”
Isn’t it time that the donors and supporters of nonprofits get to see exactly where their support is going? Sure, the figures are available, but it takes some prying, searching and tenacity to see some of the figures, and other information is not available at all.
Transparency and disclosure would be welcome additions to the solicitations from nonprofits. Disclosing the total compensation of the top three or four people in a nonprofit’s organization, the percentage of funds that end up going to the cause solicited for, the percentage of funds going to administration and the percentage of funds that are eaten up in fundraising should all be facts that a donor should know.
Other information that should be made public relative to nonprofits is the amount of government funding they receive and the amount of the organization’s funding that is derived from fundraising vs. the amount that is raised from the sale of tax credits. The public might be amazed at how much they are contributing.
There are many other questions that would be answered with a bit more transparency, and it would seem that it would be a good thing, especially when the number of nonprofits in our little state, with a population of just over 1.3 million, is near 10,000.
I hope you consider this topic for a future article.