Being accountable

Nonprofit boards are accountable for the overall direction, effectiveness and supervision of their organisation and its resources. They must also comply with relevant legislation. They are accountable to a range of people, for example those they serve, their funders and supporters, their staff and volunteers. 

Sources of accountability

Some aspects of accountability will be prescribed for you, perhaps in legislation or by a regulator.  In other areas, the accountability will be a moral one, and you will have considerable discretion about how it is best fulfilled.

Formal accountability is generally shaped by instruments such as legislation contracts, regulations and policy.

Informal accountability is fundamentally shaped by your organisation’s stakeholders and their needs.

Being accountable is essential to building trust in your organisation. Poor accountability is a potential threat to the reputation of the whole sector.

Managing risk

Given the wide and varied responsibilities of the board it's important to assess and manage risk. (Indeed trustees of larger charities are required to review and report on the risks they face and how they are managing them).

Further information

• Governance and organisational structures (NCVO) is a useful guide to understanding different legal forms and organisational types in England.
• For Love and Money: Governance and Social Enterprise (NCVO) highlights aspects of governance that are specific to social enterprises.
• Duties of Charity Trustees - this PDF is a clear and useful guide published by solicitors Bates Wells and Braithwaite.
• Charities, trustees and the law - Q&A guide from Society Guardian
  
• The Essential Trustee: what you need to know (CC3) and Hallmarks of an Effective Charity (CC10) are useful guides from the Charity Commission.
• Reducing the risks (NCVO) offers practical advice on assessing and minimising the risks associated with charity trustee liability.

Have your say

• What resources have you found useful? 
• Are there areas of being accountable that you have found problematic?
• Do you have an accountability 'horror story'?

Either add your comments here or talk with others on the governance forum.