Computer ReUseStandards for Excellence Certification
Seal of Excellence
In 2004 LATAN was one of the first nonprofits to receive the Louisiana Association of Nonprofit Organization's (LANO) Seal of Excellence for successfully completing the Louisiana Standards for Excellence Voluntary Certification Program. In 2007 LATAN applied for recertification. LANO granted our request and LATAN is now certified under the Standards for Excellence until year 2012. We continue to maintain the high standards that LANO required to initially receive the certification and recertification.
The Louisiana Standards for Excellence are based on fundamental values such as honesty, integrity, fairness, respect, trust, responsibility and accountability. LATAN's programs and services, management, fundraising and financial practices were examined in-depth before certification was awarded.
"Receiving the LANO Seal of Excellence is the culmination of many months of intensely scrutinizing all of LATAN's policies and procedures, and maintaining a system of governing and managing with integrity and accountability. Though a rigorous process, we feel it was well worth the time and effort because it enables us to present ourselves to the community as an ethical, accountable organization with an impact on the lives of the people we serve," Julie Nesbit, LATAN's President & CEO stated.
The Standards program promotes widespread application of a comprehensive system of self-regulation in the nonprofit sector and seeks to strengthen nonprofit governance and management, while also enhancing the public's trust in the nonprofit sector. LATAN is proud to announce this Standards for Excellence Certification.
Below are the guiding principles and the fifty-seven standards that LATAN had to meet to receive the Seal of Excellence. For more information about the standards certification process, contact LANO at 225.343.5266 or visit the LANO website.
Louisiana Standards for Excellence for Voluntary Non-profits
A. Mission and Program
Nonprofits are founded for the public good and operate to accomplish a stated purpose through specific program activities. A nonprofit should have a well-defined mission, and its programs should effectively and efficiently work toward achieving that mission. Nonprofits have an obligation to ensure program effectiveness and to devote the resources of the organization to achieving its stated purpose.
1. The organization's purpose, as defined and approved by the board of directors, should be formally and specifically stated. The organization's activities should be consistent with its stated purpose.
2. A nonprofit should periodically revisit its mission to determine if the need for its programs continue to exist. The organization should evaluate whether the mission needs to be modified to reflect societal changes, whether its current programs should be revised or discontinued, or whether new programs need to be developed.
3. A nonprofit should have defined, cost-effective procedures for evaluating, both qualitatively and quantitatively, its programs and projects in relation to its mission. These procedures should address programmatic efficiency and effectiveness, the relationship of these impacts to the costs of achieving them, and the outcomes for program participants.
4. Evaluations should be candid, be used to strengthen the operational effectiveness of the organization, and when necessary, be used to make strategic programmatic changes.
5. The organization should obtain feedback from key stakeholders, especially clients, constituencies, consumers and/or members during its evaluation process.
6. In rendering its programs or services, a nonprofit should act with the utmost professionalism and treat persons with respect. Where appropriate, a nonprofit should have policies in place which protect the confidentiality of personal information and provide a grievance procedure to address complaints. Nonprofits should regularly monitor the satisfaction of program participants, and strive to ensure that programs meet their needs.
B. Governing Body
Nonprofits are governed by an elected, volunteer board of directors which should consist of individuals who are committed to the mission of the organization. An effective nonprofit board should determine the mission of the organization, establish management policies and procedures, assure that adequate human resources (volunteer or paid staff) and financial resources (earned income, government contracts and grants, and charitable contributions) are available, and actively monitor the organization's financial and programmatic performance.
7. The board should engage in ongoing planning activities as necessary to determine the mission of the organization, to define specific goals and objectives related to the mission, and to evaluate the success of the organization's programs toward achieving the mission.
8. The board should establish bylaws and written policies for the effective management of the organization, including financial, personnel and fundraising policies. Both bylaws and policies should be reviewed and updated periodically.
9. The board should annually approve the organization's budget and periodically assess the organization's financial performance in relation to the budget. As part of the annual budget process, the board should review the percentages of the organization's resources spent on program, administration, and fundraising.
10. The board should hire the executive director, set the executive's compensation and evaluate the executive's performance.
11. The board should periodically review the appropriateness of the overall salary structure and employee benefits package.
12. The board should be composed of individuals who are personally committed to the mission of the organization.
13. Where an employee of the organization is a voting member of the board, the circumstances must ensure that the employee will not be in a position to exercise undue influence.
14. The board should have no fewer than five (5) unrelated directors. Seven (7) or more directors are preferable.
15. The organization's bylaws should define the role of the board officers and set forth term limits for the service of board members.
16. Board membership should reflect the diversity of the communities served by the organization.
17. Board members are to serve without compensation. Board members may be reimbursed for expenses directly related to their board service.
18. The board is responsible for its own operations, including the education, training and development of board members, annual evaluation of its own performance, and where appropriate, the selection of new board members.
19. The board should establish expectations for board members, including expectations for participation in fundraising activities, committee service, and program activities.
20. The board should meet as frequently as needed to fully and adequately conduct the business of the organization. At a minimum, the board should meet four times a year.
21. The organization should have written policies that address attendance and participation of board members at board meetings and include a process to address noncompliance.
22. Written meeting minutes reflecting the actions of the board, including reports of board committees when acting in the place of the board, shall be maintained and distributed to board and committee members.
23. Bylaws should specify what constitutes a quorum.
C. Conflict of Interest
Nonprofit board and staff members should act in the best interest of the organization, rather than in furtherance of personal interest or the interest of third parties. A nonprofit should have policies in place, and should routinely and systematically implement those policies, to prevent actual, potential, or perceived conflicts of interest.
24. Nonprofits should have a written conflict of interest policy. The policy should be applicable to board members, staff and volunteers who have significant independent decision-making authority regarding the resources of the organization. The policy should identify the types of conduct or transactions that raise conflict of interest concerns, should set forth procedures for disclosure of actual or potential conflicts, and should provide for review of individual transactions by the uninvolved members of the board of directors.
25. Nonprofits should provide board members, staff and volunteers with a conflict of interest statement that summarizes the key elements of the organization's conflict of interest policy. The conflict of interest statement should provide space for the board member, employee or volunteer to disclose any known financial interest which the individual, or member of the individual's immediate family, has in any business entity which transacts business with the organization. The statement should be provided to and signed by board members, staff, and volunteers both at the time of the individual's initial affiliation with the organization and at least annually thereafter.
D. Human Resources
A nonprofit's relationship to its employees and volunteers is fundamental to its ability to achieve its mission. An organization's human resource policies should address both paid employees and volunteers, and should be fair, establish clear expectations, and provide for meaningful and effective performance evaluation.
26. A nonprofit should have written personnel policies and procedures, approved by the board directors, governing the work and actions of all employees and volunteers of the organization. In addition to covering the basic elements of the employment relationship (e.g. working conditions, employee benefits, vacation and sick leave), the policies should address employee evaluation, grievance procedures, confidentiality of records and information, and employees growth and development.
27. With respect to volunteers, the organization's policies and procedures should address recruitment, initial assessment or screening, assignment to and training for appropriate work responsibilities, supervision, evaluation, and opportunities for advancement.
28. Organizations should have a system in place for regularly written evaluation of employees and volunteers by their respective supervisors, which should take place on an annual basis.
29. New employees and volunteers of the organization should receive an orientation, which includes review of the organization's personnel policies and procedures as it relates to their role, and an introduction to the Louisiana Standards for Excellence. Employees and volunteers should be provided with a copy of the personnel policies and these Louisiana Standards for Excellence, and should acknowledge receipt in writing.
E. Financial and Legal
Nonprofits must practice sound financial management and comply with a diverse array of legal and regulatory requirements. A nonprofit's financial system should assure the accuracy of financial records. The organization's financial resources should be used in furtherance of the organization's charitable purposes. Organizations should conduct periodic reviews to address regulatory and liability concerns.
30. A nonprofit should operate in accordance with an annual budget which has been approved by the board of directors.
31. A nonprofit should create and maintain financial reports on a timely basis that accurately reflect the financial activity of the organization.
32. For nonprofits with annual revenue in excess of $300,000, the accuracy of the financial reports should be subject to an audit by a Certified Public Accountant.
33. Internal financial statements should be prepared by no less frequently than monthly, should be provided to the board of directors, and should identify and explain any material variation between actual and budgeted revenues and expenses.
34. Organizations should provide employees a confidential means to report suspected financial impropriety or misuse of organization resources.
35. Organizations should have written financial policies governing: (a) investment of the assets of the organization, (b) internal control procedures, (c) purchasing practices, (d) unrestricted current net assets and (e) cash reserves.
36. Nonprofits must be aware of and comply with all applicable federal, state and local laws. This may include, but is not limited to, the following activities: complying with laws and regulations related to fundraising, licensing, financial accountability, human resources, lobbying and political advocacy, and taxation.
37. Organizations should periodically assess the need for insurance coverage in light of the nature and extent of the organization's activities and its financial capacity. Coverage should include but not be limited to general liability insurance and Directors and Officers liability insurance. A decision to forego general liability or Directors and Officers liability insurance coverage shall be made by the board of directors only and shall be reflected in the minutes of the meeting at which the decision was made.
38. Nonprofits should periodically conduct an internal review of the organization's compliance with known existing legal, regulatory and financial reporting requirements and should provide a summary of the results to the board of directors.
F. Openness
Nonprofits are private corporations which operate for public purposes with public support. As such, they should provide the public with information about their mission, program activities, and finances. A nonprofit should also be accessible and responsible to members of the public who express interest in the affairs of the government.
39. Nonprofits should prepare, and make available annually to the public, information about the organization's mission, program activities and basic financial data. The report should also identify the names of the organization's board of directors and management staff.
40. Nonprofits should provide members of the public who express an interest in the affairs of the organization with a meaningful opportunity to communicate with an appropriate representative of the organization.
41. Nonprofits should have at least one staff member who is responsible/or ensuring compliance with both the letter and the spirit of federal and state laws that require disclosure of information to members of the public.
G. Fundraising
Charitable fundraising provides an important source of financial support for the work of most nonprofit organizations. An organization's fundraising program should be maintained on a foundation of truthfulness and responsible stewardship. Its fundraising practices should be consistent with its mission, compatible with its organizational capacity, and respectful of the interests of donors and prospective donors.
42. A nonprofit's fundraising costs should be reasonable over time. On average, over a five - year period, a nonprofit should realize charitable contributions from fundraising activities as set by the board (i.e. at a minimum, revenues from fundraising activities should equal three times the amount spent on fundraising). Organizations should demonstrate that they are making steady progress toward achieving this goal, or should be able to justify why the goal has not been met.
43. Solicitation and promotional materials should be accurate and truthful. Materials should correctly identify the organization, its mission, and the intended use of the solicited funds.
44. All statements made by a nonprofit in its fundraising appeals, concerning the use of a contribution, should be honored.
45. Nonprofits should honor the known intentions of a donor regarding the use of donated funds.
46. Nonprofits should respect the privacy of donors and safeguard the confidentiality of information that a donor would reasonably expect to be private.
47. Nonprofits should provide donors an opportunity to state that they prefer to remain anonymous. Donors should also be able to prevent the release of their names, the amounts their gifts, and/or other information.
48. Nonprofits should provide donors an opportunity to have their names removed from any mailing lists which are sold, rented, or exchanged and should have the donor's written permission prior to selling, renting and/or exchanging mailing lists.
49. Nonprofits should honor requests by a donor to curtail or stop repeated mailings or telephone solicitations from in-house lists.
50. Solicitations should be free from undue influence or excessive pressure, and be respectful of the needs and interests of the donor or potential donor.
51. An organization should have policies in place to govern the acceptance and disposition of charitable gifts, solicited or unsolicited, that are received in the course of its planned or unplanned fundraising activities. These policies should include procedures to determine any limits on individuals or entities from which the organization will accept a gift, the purposes for which donations will be accepted, the type of property which will be accepted, and whether to accept an unusual or unanticipated gift in light of the organization's mission and organizational capacity.
52. Fundraising personnel, including both employees and independent consultants, should not be compensated based on a percentage of the amount raised or other commission formula.
53. When utilizing fundraising consultants, organizations should use the services of a reputable fundraiser with documented experience. The organization should be responsible for setting policy regarding experience requirements.
54. Organizations should have a written policy exercise control over staff, volunteers, consultants, contractors, other organizations or businesses who are know to be soliciting contributions on behalf of the organization.
H. Public Affairs and Public Policy
Nonprofits provide an important vehicle through which individuals organize and work together to improve their communities. Nonprofits should represent the interests of the people they serve through public education and public policy advocacy, as well as by encouraging board members, staff, volunteers and constituents to participate in the public affairs of the community.
55. Nonprofits should have a written policy on advocacy defining the process by which the organization determines positions on specific issues.
56. Nonprofits should ensure that all educational information provided to the media or distributed to the public is/actually accurate and provides sufficient contextual information to be understood.
57. Nonprofits engaged in promoting public participation in community affairs shall be diligent in ensuring that the activities of the organizations are strictly nonpartisan.
