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You are here: Home / Road to Accountability / Transparency – The Basics

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.

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