Transparency – The Basics

Introduction

This module introduces the concept of transparency as it applies to registered charities and non-profit organizations.

The key areas covered are:

• Being Transparent
• Transparency Tools
• A Transparency Checklist

For accountability tools, go to Accountability – Tools

Definition

Transparency is the commitment to communicate to stakeholders by publishing or making available critical information about finances, governance and program outcomes.

Being Transparent

• Being open to giving stakeholders organizational information that will build trust and strengthen credibility;
• Being able to respond in a timely manner to stakeholders’ question on governance, management issues, finances, donor privacy issues, program outcomes and other issues.
• It is easy to be transparent when a registered charity has good accountability practices.
• Resistance to being transparent tends to stem from lack of confidence that the charity is being accountable as required.

Transparency Tools

• Your charity’s brochure – printed or e-version
• Your website
• Annual T3010 submitted to CRA this is available by searching the List of Charities on the CRA Charities and Giving website.
• Annual reports published on your website or printed hard copies
• Published financial statements
• Financial report of project submitted to funder
• Information on the fundraising results and how the money is spent
• Policy and procedure on handling requests for information
• Newsletter
• Social media – Facebook, blogs, Twitter

Brochure

• Your charity’s brochure is your business card
• Information to include: ƒ
  • Mission ƒ
  • Program activities ƒ
  • Accomplishments ƒ
  • Names of Board of Directors ƒ
  • Names of funders and major donors

Website

• Your website is not just your e-brochure. It is a two way communication platform for you and your stakeholders.
• Be sure to build in opportunities to dialogue with your web users.
• Use this as a proactive transparency tools to talk about your practices.

Annual T3010 Return

This is one of the best transparency tool in that charities do not have to re-create the information and communicate to their stakeholders. ƒ Most of the information on the Return is available to the public when they search on CRA website. www.cra-arc.gc.ca/chrts-gvng/lstngs/menu-eng.html

Annual Report

• This is a tool to report to your stakeholders and to celebrate your accomplishments.
• An Annual Report usually includes: ƒ
  • Your mission; ƒ
  • Program activities with emphasis on accomplishments; ƒ
  • Statistics – number of people served; ƒ
  • Financial reports ƒ
  • Names of funders, donors, supporters

Policy on Handling Requests

The policy should specify:

• who is responsible for handling information request; who is the backup;
• the deadline for responding to request;
• how to respond, i.e. email, print or verbal?
• what information to keep in the record?
• what kind of information request needs senior management’s approval

Newsletter and Social Media

Have a plan with

• the purpose for using each medium;
• the kind of information to disseminate;
• a schedule for dissemination;
• the tone of voice
• the way to handle responses as a result of the social media posting

Transparency Checklist

• Are your governance and management practices easily observable and understood?
• Do you keep records that demonstrate your accountability practices?
• Are you able to provide information on these practices?
• Do you have a policy designating who and how requests for information are to be handled?

Resource Materials

More information on transparency:

• Self-Diagnostics Pack
• Road to Accountability Handbook

Notice

Information in this module is provided for general educational purposes and not as legal or accounting advice. Consult a lawyer or accountant for professional advice. Information is accurate as of 2019. For changes after this date, consult Canada Revenue Agency.