The National Committee for Responsive Philanthropy, a watchdog and advocacy organization that promotes public accountability among foundations, corporate grantmakers, and individual donors, has issued a critique of recommendations designed to improve accountability in the charitable sector under consideration by the Senate Finance Committee.

In a report presented before the finance committee on April 5, the Panel on the Nonprofit Sector called on the nation's charities and foundations to implement a series of measures designed to improve their governance and financial disclosure, and also suggested enhancing government oversight of charitable organizations through actions by Congress and the Internal Revenue Service.

To ensure that nonprofit organizations follow the highest ethical standards, the panel recommended, among other things, that all nonprofits adopt a conflict-of-interest policy, include individuals with financial literacy skills on their boards, and develop specific procedures to encourage and protect whistle-blowers. It also urged Congress to improve enforcement of existing regulations by encouraging states to incorporate federal tax standards for nonprofits into state law as appropriate; increasing federal funding for IRS oversight of the sector; and giving state attorneys general and other state charity officials the same access to IRS information that state revenue officers currently have.

According to the statement released by NCRP, the recommendations "sidestep" most of the toughest issues. "It's all too clear," said NCRP executive director Rick Cohen, "that the real agenda behind the policy recommendations to be presented to the Senate Finance Committee is an agenda to avoid stronger regulations on inappropriate and exorbitant expenditures, five- and six-figure fees paid to foundation trustees, self-dealing by foundation insiders, and inadequate payout rates by substituting self-policing for rigorous oversight and enforcement."

To read or download the complete NCRP statement (7 pages, PF), visit: http://www/Statements/Statement-040405-Response%20 to%20 IS%w3c.

To read or download the Panel on the Nonprofit Sector's interim report (37 pages, PF) to the Senate Finance Committee, visit: http://www/interim/Panel Report_spreads.