Nonprofits and Changing Standards in Accountability

Changes in Accountability

One of the concerns about nonprofit accountability is that not-for-profit organizations are not directly accountable to shareholders or dependent on consumer spending and may therefore be less responsive to stakeholder needs. Yet as noted by Ebrahim (2010), nonprofits can also face substantial conflicts in terms of accountability, including the need to stay within a specific budget (like all organizations must) versus meeting the demands of the population group or cause the organization is striving to serve. Sudden, unexpected surges in demand (such as a natural disaster or a bill threatening a policy the nonprofit supports) can also generate unexpected problems that the organization must expend resources to deal with (Ebrahim 2010). Further complicating accountability is the hyper-responsiveness of social media, which may draw attention to certain hot-button causes even though the actual analysis of the organization suggests that its resources are best expended elsewhere (Ebrahim 2010).
Accountability to an increasingly diffuse array of stakeholders and perceived stakeholders, including commentators on social media is likely to increase in upcoming years, particularly since nonprofits are often highly reliant upon donations and positive publicity. But given that nonprofits also use social media so much, eschewing such accountability will be challenging (Ebrahim 2010). Also, there is a proliferation of news media and an increased ability of people to Google different sources when they are contemplating donating or comparing the performance of different charities. Of course, the ultimate source of accountability and reason for existing for any nonprofit is the potentially vulnerable individuals whose interests it is striving to serve. But to do so, it must constantly review how it is perceived in the eyes of the public, government organizations, and all entities and persons who might have a positive or negative impact on its future (Ebrahim 2010).
Reference
Ebrahim, A. (2010). The many faces of nonprofit accountability. Harvard Business School. Retrieved from http://hbswk.hbs.edu/item/the-many-faces-of-nonprofit-accountability