- To whom are non-profits accountable?
The nonprofit organization is accountable to many electorates. Firstly, nonprofit organizations are accountable to the general public. Nonprofits are made to offer a charitable drive to the public good, whether as charities, educational programs, churches or religious groups, or scientific or artistic organizations. Secondly, nonprofit organizations are accountable to the state agencies. Nonprofits must also obey with definite rule in the states in which they run. These may also need public release disclosure of specific documents or the filing of certain reports. Lastly, nonprofit organizations are accountable to the IRS because several tax-exempt entities obey laws set by the IRS to maintain their tax-exempt status. In addition, many nonprofits are ran by boards; others may be ran by voting members. When a nonprofit first starts operating, the board members, along with the founder(s), may complete many of the duties of the organization. As the nonprofit develops, the board may start hiring staff members to expand and lead programs as the board and/or voting members endure to manage the organization. But none of these entities or groups have any ownership rights in the organization. And while they don’t own the nonprofit, they do have significant legal and ethical duties that cannot be given to others.