Why Fundraising Policies and Procedures are Necessary
In recent years, with the overwhelmingly generous response of the public to global and national tragedies and disasters, coupled with the ongoing needs of non-disaster relief organizations, fundraising challenges have multiplied. In addition, the nonprofit sector has faced increased, yet appropriate, scrutiny by government regulators and individual donors alike. In the United States, the passage in 2002 of the Sarbanes-Oxley Act created an environment of greater self-examination and accountability within nonprofits. This American law, while focusing on corporate governance and financial accounting practices, has led many nonprofits around the world to review, evaluate and change the ways they operate.
POLICY: DEFINED BY THE AFPFUNDRAISINGDICTIONARY
n. – as adopted by a governing board, broad and general statements that are guiding principles designed to influence and determine the decisions and actions of an organization
Nonprofit leaders must understand that public trust is vital to the sector’s mission, and their organizations must be transparent and accountable to donors, stakeholders, government agencies and future patrons to succeed.
Research and media reports throughout the world suggest the importance of donor trust and indicate a direct correlation between public confidence in an organization and its level of support.