Transparency: Not Only for External Shareholders

When viewing the nonprofit sector, one of the biggest weaknesses discussed for most nonprofit organizations is lack of transparency. Most people (including my six teachers at Regis University) describe being transparent as being open to the outside shareholders. This includes future donors, clients and board members but the one group of shareholders which is consistently left out is the staff.

While it is imperative for organizations to provide financial statements, hold open board meetings and be available to answer questions from external shareholders, without staff transparency (and communication) these organizations will continue to fail. In discussing issues which impact many of the nonprofit organizations where my peers work, the number one issue is financial constraints. As nonprofit workers, we are told to cut our budgets or to take some furlough time but then we watch as it seems money flies out the door for executive directors or CEOs or watch as the organization hires a part time employee. Rumors start and people start questioning their own jobs.

What if the executive director was transparent with the rest of the staff about the reasoning for bringing on the part time employee? Why are there external newsletters to show clients how successful the organization is but there aren’t any internal communications for the staff to see their work is still appreciated? What would happen if nonprofit organizations worked on being transparent across the organization’s entire mission rather than just one sided? How can organizations (specifically faith based) become transparent after so many years of being quiet about the finances and health of the organization?

Next time a nonprofit professional talks about transparency, why not challenge them to look at how they are being transparent on the inside. If we hold each organization accountable, real change can happen for the nonprofit sector.