A group of nonprofit leaders has released a set of 29 draft principles on self-regulation of the sector and is seeking comment from charities.
The Panel on the Nonprofit Sector, convened by Independent Sector to provide recommendations on nonprofit regulation to the U.S. Senate Finance Committee, will accept feedback on the newest draft principles through Jan. 24.
The panel recommends all nonprofits with $1 million or more in annual revenues, and all foundations with at least $25 million in assets, be expected to adhere to the guidelines.
Smaller organizations should work toward following the principles that fall into four categories, the group says.
The first six principles concern legal compliance, focusing on issues including conflict of interest, whistleblower policies and preservation of critical records and documents.
Eleven principles address effective governance, covering issues including diversity and compensation of board members, and roles and duties of staff.
Five recommendations deal with improving financial oversight by addressing issues such as investment practices, recordkeeping, and loans to directors and trustees.
The final set of seven principles involves responsible fundraising and includes recommendations about accuracy and truthfulness, respect for donor intent, and proper acknowledgement of donations.