Panel on the Nonprofit Sector Issues Final Report on Best Governance Practices

The Panel on the Nonprofit Sector (the Panel) recently released Principles for Good Governance and Ethical Practice: A Guide for Charities and Foundations (the Guide), the culmination of a process to identify and disseminate sector-wide best practices in nonprofit organizational governance. Recognizing that the continued vitality and independence of the nonprofit sector is dependent upon the ongoing trust of the public and government, the Panel sought to identify those principles that, if practiced, would ensure strong internal structures for organizational transparency and accountability. The Panel believes that the principles contained in the Guide will strengthen the self-regulation and good governance necessary to maintain a healthy balance between government regulation and private innovation.

The Guide offers 33 principles to help charitable organizations strengthen governance and transparency. Six of these principles describe actions that organizations are required to take by law. The other 27 principles describe practices that charitable organizations should “strongly consider” following based on their legal and operational structure and their charitable purposes.

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