When you think of all of the factors that influence your nonprofit’s success, does transparency come to mind? This may be a more subtle performance indicator than the others we have looked at over the last two weeks, but it is so important. The third “T” in our series about the “Four Ts” or four performance indicators that deserve a closer look as a nonprofit is transparency. Transparency is just one of the four indicators that has the potential to increase and produce greater success while positively impacting nonprofits. To learn more about the other “Ts” we have discussed, visit here to learn about technology and to take a closer look at how it impacts another indicator, transformation.
Is your organization accountable to its stakeholders and providing them with insight into how money is being spent, how decisions are being made, etc.? Does your organization allow its stakeholders and constituents to make informed decisions about the services provided and their quality? Many organizations fail to even view transparency as something that will better decision making. The reality is that this can be achieved if care is taken to present information in relevant and engaging ways instead of by simply replicating internal paperwork.
Beck and Company’s Certified Public Accountants and Business Advisors understand that having the relevant data and accurate information needed to be transparent can be tricky and difficult, especially in small organizations who may not have expertise in accounting and financial practices and are best skilled to focus on the important mission-related work of the nonprofit. Our expertise is in the financial area, and we can help you with your accounting and financial practices through our nonprofit services designed to meet the financial accounting needs of organizations. We also offer audit services to help you with yet another financial aspect of your organization that is essential to its health and transparency—nonprofit audits. Let’s take a closer look at what transparency is all about and how it is beneficial.
What is transparency, and why is it important to nonprofit success?
Transparency is so much more than sharing the latest budget or minutes from meetings. It involves identifying the right sets of data, identifying the appropriate financial and non-financial key performance indicators (KPIs), and acting upon that information to demonstrate how effective a nonprofit organization is at meeting the needs of those it serves. Metrics and measurements must also be clearly communicated to achieve transparency, and this information must be consistent and timely.
The beauty of transparency is the opportunity it creates for true openness. It has many benefits including helping in fostering a culture of collaboration and sharing within an organization and to its stakeholders. At the same time, transparency can increase trust and engagement through true accountability.
Here are five essential benefits of being transparent:
1. Increased engagement- conversations, decision making improvements, dialogue, etc.
2. Enhanced internal collaboration and true openness as a nonprofit staff
3. Improved trust in the organization on the part of its stakeholders
4. Enriched quality of delivered services
5. Heightened operational efficiency within the organization
Beck and Company CPAs can help you in the process of continually increasing transparency, particularly financial transparency, through a myriad of service offerings including accounting services, nonprofit services, audit services, and technology consultation services. Please contact us to let us know what your needs are and to find out how we can assist you in meeting those needs. Stay tuned for the conclusion of our series on indicators that can determine organizational success next week as we look at the last of the four “Ts” that can be strong indicators of nonprofit success—talent.