IU survey shows some nonprofits fall short of regulations

A recently released study by the Center on Philanthropy and the School of Public and Environmental Affairs at IU revealed that although most nonprofit organizations have accountability-monitoring tools, a minority fall short of government regulations.\nNonprofits are serving a general community and their needs, said Kirsten Grønbjerg, project director for the study. They have special privileges and are accountable to the general public, she said. Soup kitchens, art museums, symphonies, churches, shelters for the homeless and a number of other organizations are a few examples of nonprofits. \nAccording to a statement, the Senate Finance Committee has recommended nonprofit organizations file information with the Internal Revenue Service every five years -- including written conflict-of-interest policies, financial reports and management policies -- to determine if they continue to meet the requirements for tax-exempt status, said George Vlahakis, manager of IU Media Relations. \n"This is one reason (why it is important that all nonprofits show accountability)," he said. "I am sure there are other reasons which relate to everyone's desire that our contributions are being used for the purpose intended."\nGrønbjerg said it is important nonprofits show accountability so they do not misuse the funds. \n"There is always that possibility," she said. \nA number of people contribute to nonprofits because people trust these organizations, and it is important to keep their trust, Grønbjerg said.\n"I find it fascinating to see, in black and white, how nonprofits conduct business all across Indiana," said Debra Kent, SPEA's manager of media relations. Kent has her own first-hand experience in the nonprofit world, as she is the founder of the WonderLab Museum of Science, Health and Technology in Bloomington and is a past president of Pets ALIVE. \n"Anyone who has ever been involved with nonprofit management knows how important it is to demonstrate accountability," Kent said. "You have a responsibility to the public and the government to operate responsibly and aboveboard."\nThis study has been part of the ongoing Indiana Nonprofit Sector: Scope and Community Dimensions surveys, which began in 1999. The surveys were conducted in 2002 and as many as 2,206 nonprofits responded to the survey.\n-- Contact staff writer Hina Alam at halam@indiana.edu.