1. Attracting and Retaining Funders with
Greater Financial Transparency
Presented by:
Edward D. Warren
Director of Practice Growth
Best Practices for Board and Staff

2. Financial Transparency
• How do you define transparency?
• How do you define accountability?

3. The Cautionary Tale:
• DC Children & Youth Investment Trust Corp
– Established in 1999
– Received over $120 million in DC funds since inception
– To support > 70 after-school & other programs
• Federation Employment & Guidance Services
• COIL vs. Weinberg Foundation

4. Key Indicators of Accountability
and Transparency
• Independent Board
• Audited financials*
• Loans to or from related parties
• Documented board meeting minutes
• 990 to board prior to filing
• Diverse Board

5. Key Indicators of Accountability
and Transparency
• CEO named on 990
• CEO compensation list on 990
• Material diversion of assets
• Keep an eye on UBI
• Records Retention
• Whistle Blower

6. Key Indicators of Accountability
and Transparency
• Other top earners listed on 990
• Top vendors listed on 990
• Board listed on 990
• Clearly delineated mission
• Conflicts of interest
• Easy access to financials & 990*

7. A Good News Story:
• DC-based Work Force Development non-profit
– Annual budget of approximately $400,000
– Incompetent bookkeeper
– Opaque and inaccurate financials & 990

8. GuideStar Data

9. Takeaways
• Must be profitable to do good work
• Must be well-governed to endure
• Must have an engaged and balanced board
• Must be transparent to get & maintain funding
• Remember all roads lead to the sea