Second Summit on Nonprofit Leadership, Melbourne June 2004

1. Second Summit on Nonprofit Leadership, Melbourne June 2004 Handling risk and relationships An accountability perspective Martin Stewart-Weeks, The Albany Consulting Group

2. Starting propositions “Public trust is the most important asset of the nonprofit and philanthropic community. Obedience to the unenforceable: ethics and the nation’s voluntary and philanthropic community, Independent Sector, 1991 and revised, 2002 “I really believe that in the next century that the most influential institutions on the planet will be nongovernmental organisations”. Steven J McCormick, President, Nature Conservancy (in an article in the Washington Post, 4 May 2003)

3. A context Any discussion about accountability frameworks in the third sector – and indeed, about accountability more generally in the public policy process – has to come to terms with this emerging world of networked influence, decision-making and delivery. As the lines blur, it gets harder to define accurately and confidently the locus of accountability. The point is that the accountability debate is not only shifting itself, but being fashioned by larger changes in the structure and process of policy and public management, into which the third sector will inevitably, and increasingly, be caught up.

4. An accountability framework Association of Fundraising Professionals • Each nonprofit organisation holds a public trust to improve the quality of life. • The accountable organisation clearly states its mission and purpose, articulates the needs of those being served, explains how its programs work, how much they cost and what benefits they produce. • The accountable organisation freely and accurately shares information about its governance, finances and operations. It is open and inclusive in its procedures, processes and programs consistent with its mission and purpose. • The nonprofit organisation is accountable to all those it exists to serve, to all those who support it, and to society.

5. An accountability framework Proposition 1 - Visibility It is legitimate to expect the third sector to conduct its affairs and to run its enterprises in ways that make it easy to see what is actually going on. Proposition 2 - Transparency As well as being able to see what’s going on, it is fair to expect third sector organisations to be open and transparent about their structures, processes and operations. Proposition 3 - Authenticity People need to respect the independent capacity of the third sector to give ‘voice’ to the values and visions that animate their members and which create the basis for their contribution to an open and free democratic society.

6. Three big risks • Cooption • Ignorance • Incompetence

7. A suitable response? • Mandate • Authenticity • Performance

8. The challenge of renovation Understanding why we are experiencing A crisis of confidence Will lead to A renewal of commitment That provides a platform for a sustained Outbreak of competence