First New Edition of the Principles since Initial Release in 2007
(WASHINGTON, February 25, 2015) — Independent Sector today announced the release of the 2015 edition of the seminal Principles for Good Governance and Ethical Practices, a set of 33 principles broadly accepted by many nonprofit and philanthropic organizations as the foundational guide for charities’ and foundations’ self-governance. The release marks the first substantive changes to the guide document since the initial October 2007 publication of the Principles. The guide has been downloaded more than 250,000 times with thousands of printed copies in distribution.
The 2015 edition of the Principles contains legal background and principles on a broad range of topics including legal compliance, effective governance, financial oversight, and responsible fundraising. Changes in the 2015 edition include eight areas in which the ethics and governance landscape has transformed since the Panel on the Nonprofit Sector first convened to develop these standards nearly a decade ago. Updated content in the Principles include new implications for nonprofits and foundations:
- How technology affects giving in a digital world and risk related to data security
- New charitable business and social change models, such as donor-advised funds and social impact investing, and their opportunities and pitfalls
- The need to balance organizational transparency and individual privacy
- The evolving debate on overhead costs
More than 20 nonprofit leaders served on the advisory group last year to update the guide. Organizations supporting the new guide include groups such as Americans for the Arts, Camp Fire, GuideStar USA, the William & Flora Hewlett Foundation, Lutheran Services in America, YMCA of the USA, and United Way Worldwide.
Independent Sector released the 2015 edition of the Principles for the first time to the public today in a bipartisan event on Capitol Hill, led by honorary co-chairs Senator Chuck Grassley (R-IA), Congressman Mike Kelly (R-PA), Congressman Earl Blumenauer (D-OR), and Congresswoman Debbie Dingell (D-MI). At the event, leaders in the nonprofit community from around the country will lead a discussion of the implications of these principles, highlighting the impact on issues such as executive compensation, earned income, fundraising, and whistleblowers.
All four honorary co-chairs from Congress offered statements in support of the new edition of the Principles.
“The sharing of best practices makes sense in any field,” Sen. Grassley said. “That’s especially true in philanthropy, where good governance makes it easier for charities to continue their work. Donors want to give to organizations that have transparency, strong financial management, and get the most value from every dollar donated. Independent Sector gives organizations a guidepost for doing things right.”
Rep. Kelly said the new guidelines can help charitable organizations achieve their critical missions.
“Nonprofits do incredibly important work for their communities that often changes lives and makes America better,” Kelly added. “I’ve been fortunate to witness this firsthand through my longtime work with Hyundai Hope on Wheels, an organization dedicated to the heroic cause of ending childhood cancer. It is my hope that the updated Principles for Good Governance and Ethical Practice from Independent Sector will help other charities and foundations across our country combine their passions for advancing the common good with solidly ethical, transparent, and effective practices.”
In a statement of support for the Principles update, Rep. Blumenauer also highlighted the importance of the charities that serve his community.
“Our communities are shaped by many people trying to make a difference,” Blumenauer commented. “The charities and nonprofit organizations in my district work very hard to build the type of inclusive community that we all want to live in. From protecting the vulnerable like the Oregon Food Bank, to building connections like Bike Portland, and to developing our community’s capital for the future like the Oregon Community Foundation, I’m proud to work with these organizations to build a stronger community.”
Rep. Dingell added her perspective from decades of coordinating with charities while serving in the private and government sectors.
“As a former President of the General Motors Foundation and as someone who has spent nearly 30 years serving on nonprofit boards and working with many charities, I know firsthand the real impact they make in people’s lives,” Dingell said. “Countless Americans benefit from the generosity of these organizations, which lend a helping hand to those in need, protect the health of our citizens and strengthen our communities. The Principles released today are critical as they reinforce transparency, support fiduciary responsibility and effective governance and guide responsible fundraising. They provide assurance to communities that the non-profit sector is operating with the utmost integrity and with total responsibility.”
Panelists at the Capitol Hill event included:
- Diana Aviv, President and CEO, Independent Sector
- Ron Kagan, Executive Director and CEO, Detroit Zoological Society
- Bernard Milano, President, KPMG Foundation
- Angela F. Williams, Executive Vice President, YMCA of the USA
- H. Art Taylor, President and CEO, BBB Wise Giving Alliance
- Andrew Watt, President and CEO, Association of Fundraising Professionals
Will Miller, president of The Wallace Foundation, who both signed on to the 2015 edition of the Principles and provided funding for their release, added a final comment on the importance of up-to-date ethical standards in an increasingly digital world:
“Independent Sector has done an important service in convening a group of sector leaders to develop a set of Principles for Good Governance and Ethical Practice in the nonprofit sector, updated to reflect the new challenges we face in a digital age. The effectiveness of the nonprofit sector, crucial to our national health, ultimately depends on public trust. These principles remind us of the importance of sustaining that trust – and offer useful guidance on what it means to be trustworthy.”
A standard edition and an extensive legal reference edition of the Principles are available for sale PrinciplesForGood.com, as well as access to an online Resource Center, a self-assessment tool for charitable leaders and board members, a database of governance resources, and much more. Both print and digital copies are available both at the Principles site and on Amazon. Digital resources are available for pre-order delivering March 1.
