Already a few years ago, the Maryland Association of Non-Profit Organizations has published Standards for Excellence, which is a good document for organizational assessment and development of this sector. It covers the following aspects:

1. 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.

2. Governing Body
Nonprofits are governed by an elected, volunteer board of directors that 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.

3. Conflict of Interest
Nonprofit board and staff members should act in the best interest of the organization, rather than in furtherance of personal interests or the interests 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.

4. Human Resources
A nonprofit’s relationship to its employees and volunteers is fundamental to its ability to achieve its mission. Volunteers occupy a special place in nonprofit organizations, serving in governance, administrative and programmatic capacities. 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.

5. 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 that accurate financial records are kept and that the organization’s financial resources are used in furtherance of the organization’s charitable purposes. Organizations should conduct periodic reviews to address regulatory and liability concerns.

6. Openness
Nonprofits are private corporations that 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 responsive to members of the public who express interest in the affairs of the organization.

7. 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 policies should be consistent with its mission, compatible with its organizational capacity, and respectful of the interests of donors and prospective donors.

8. Public Affairs and Public Policy
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 policies should be consistent with its mission, compatible with its organizational capacity, and respectful of the interests of donors and prospective donors.