Commitment to Transparency
What is the Significance of the Seal?
Intelligent Philanthropy’s recognizes charity’s Commitment to Transparency because of open communication about governance, finances, strategy, and impact. Each recognized charity submits 160 data points about operations and performance. The transparency exceeds IRS requirements and gives donors a more detailed look at nonprofit operations than any other independent charity evaluation platform.
Transparency seal recipients are voluntarily engaging in an open and accountable relationship with donors. Debt levels, 3-year trends in number of people served, program results, strategic plans, and even an internal S.W.O.T. analysis (Strengths, Weaknesses, Opportunities, and Threats) are all shared. The 2-page Analytical Overviews allow donors to quickly see the ups and downs, challenges and successes, that an organization has experienced in its programs, operations, finances, and results. In a world where too many dishonest nonprofits have made headlines, the Intelligent Philanthropy recognition for organizational transparency distinguishes a new breed of nonprofits committed to a higher standard.
It is important not to mistake the nonprofit information on platforms such as Charity Navigator and Guidestar as evidence of transparency. Charity Navigator and Guidestar both reformat financial and organizational data from 2 year old IRS tax forms. In contrast, Intelligent Philanthropy and the BBB invite nonprofits to provide extensive up-to-date information on organizational performance each year. A seal from the latter evaluators means a charity is actively providing an open look at internal operations.
Intelligent Philanthropy commends every organization investing the time of multiple staff members to complete an Analytical Overview. It is no simple task to be transparent. It has required CEOs, CFOs, program directors, and development officers to work together to provide an accurate and complete organizational portrait. To see how one nonprofit organization is proudly presenting its seal click here.