Financial Management Standard

ICI is intended to strengthen the capacity of participating nonprofits to be faithful stewards of funds entrusted to them. Participating nonprofits are expected to exercise prudent and dutiful board and management practice; maintain accurate financial records; comply with generally accepted accounting principles; be respectful of the intent and desire of donors and prospective donors; and act in ways that ensures that the organization’s financial resources are used solely in furtherance of its mission.

Participating nonprofits are therefore expected to strive toward achieving the following standards:


A. Financial Accountability

  • Should operate in accordance with an annual budget that has been approved by the board prior to the beginning of each fiscal year.‚Äč

  • Financial statements, reflecting the financial activity of the organization, including the comparison of actual to budgeted revenue and expense, should be provided to the board of directors at every regular meeting (at least quarterly).

  • Should have written financial policies governing the following matters, where appropriate: (a) investment of the assets of the organization; (b) internal control procedures; (c) purchasing practices; (d) reserve funds; (e) compensation, including salary and benefits; (f) expense account reporting; (g) earned income (h) petty cash and (I) the receipt and treatment of charitable gifts and grants.

  • May budget for a “manageable” deficit from time to time but should not incur persistent (multi-year) or increasing operating deficits.

  • Regulatory, risk management, and liability concerns are periodically reviewed.

 

B. Fundraising Activities

  • Fundraising costs should be reasonable in terms of percentage of charitable revenue spent for development.

  • Fundraising methods should promote the public’s trust in its stewardship of charitable dollars. Solicitation, promotional materials, and grant applications should be accurate, honest, and ethical. The materials should clearly identify the organization, its mission, and the intended use of the solicited funds.

  • The known intentions of a donor or grant source should be followed to the greatest extent possible in respect to the use of funds. Participating nonprofits are expected to fully comply with all donor/grantor requirements and to do so with complete accuracy.

  • All statements that a participating nonprofit makes in its fundraising appeals and grant applications about the use of a contribution or grant should be honored or renegotiated.


C. Employment of Fundraising Personnel

  • Fundraising personnel should not be compensated based on a percentage of the amount raised or other commission formula, without prior approval from ICI.

  • Should exercise control over any staff, volunteers, consultants, contractors, other organizations, or businesses that are known to be soliciting contributions on behalf of the organization. Please Note: Fiscally sponsored organizations are specifically prohibited from engaging professional fundraisers, either individuals or firms, without express written consent from ICI.


D. Donor Relationships and Privacy

  • Should respect the privacy of donors and safeguard the confidentiality of information that a donor reasonably would except to be private.

  • Should provide individual donors with an opportunity to remain anonymous and to prevent their name, gift amount, or other information from being publicly released.

  • Should receive permission from individual donors before their names, addresses, and telephone numbers are included in any donor only mailing lists that are sold, rented, or exchanged.

  • Should honor donors’ and prospective donors’ requests to curtail mailings or telephone solicitations from in-house lists.

  • Solicitations should be respectful of the needs and interest of the donor or potential donor and should be free from coercion, undue influence, or excessive pressure.

 

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