For those participating in U.S. nonprofit governance, the phrase “new IRS regulations” provoke a sense of dread.  Oh no, some board members say, something additional is going to be required of us and of the staff.  There is something else that we can do wrong and place our organization in jeopardy. 

Fortunately, the “new” Part VI regulations will look very familiar to those following the best practices road of the last two decades.  Thoughtful boards and tuned-in executive leaders have had policies in place for several years concerning:  fundraising, investments, conflict of interest, whistleblower protection, review of top executive compensation, board minutes and records management.  In this case, the IRS can be seen as primarily reflecting the trends of effective organizations in the sector.  Some of the requirements are new but most can hardly be seen as outside the realm of reasonableness for the caring community stewards among us.  This approach vindicates the collaborative consensus developed among technical assistance providers and capacity builders across North America.  We can be proud that now, even the government believes that these practices are worthwhile and worthy of emulation. 

However, the point is well taken that it is sad that it takes the prospect of government review to shake those asleep at the switch into wakefulness.  It is shameful that regulations are required to force components of ethical practice to occur or common sense steps taken to protect public assets and organization integrity.  As usual, it is those few large organizations with well-publicized transgressions that cause the reaction of stiffened regulation.  This consultant perceives that many small organizations have always been much more attuned to proper procedures, perhaps because resources there have always been so scarce.

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3.22 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."