The Panel on the Nonprofit Sector released a report that encourages not-for-profit organizations to post their tax-exempt 990 forms online. In addition, at least two-thirds of a not-for-profits board of directors should be independent. Boards should also have a diverse membership and they should annually evaluate the organizations chief executive officer prior to any change in compensation, according to the panel.
In total, the Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations outlines 33 principles, continuing the panels efforts to strengthen ethical standards through self-regulation within the not-for-profit community. The principles are designed to foster transparency, accountability and good governance among all charitable organizations, including not-for-profit hospitals, and are organized into four categories: legal compliance and public disclosure; effective governance; financial oversight; and responsible fundraising.
The Panel on the Nonprofit Sector is an independent panel of 24 leaders from public and private charities and foundations. It was convened by the Independent Sector coalition in October 2004 at the encouragement of the Senate Finance Committee in light of scrutiny of not-for-profit organizations. The panel released a major report in June 2005 and a supplemental report in April 2006. -- by Cinda Becker
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