Strategies to Improve Financial Accountability

Scandals in the nonprofit sector have led to increased focus on financial accountability. Adopting comprehensive standards, revising IRS Form 990, and maintaining low administrative costs are three of the many strategies being examined to address financial accountability. What are the best ways to achieve greater financial accountability in the nonprofit sector? The influence of local foundations is a critical factor in exploring this question. This study takes a look at Colorado foundations’ views on the strategies identified to better demonstrate the financial effectiveness of nonprofits. The study concludes that Colorado foundations find value in all the strategies examined, but prefer to review financial statements and audit reports to assess a nonprofit organization’s financial credibility. The results of the study have implications for the Colorado nonprofit community to further explore strategies for achieving greater financial accountability.