"Start with what is right rather than what is acceptable."
—Peter Drucker

"When you go into court, you are putting your fate into the hands of people who weren't smart enough to get out of jury duty."
—Norm Crosby

"Do the right thing."
—Spike Lee

Obeying the law may keep you out of prison and your organization out of court, but to thrive as a nonprofit, that's hardly enough. You expect more or you wouldn't be in the nonprofit sector to begin with, and the public expects more of you as well. Because reassuring stakeholders of a charitable organization's commitment to upholding the public trust is "vital to earning support and fulfilling its mission," Independent Sector has issued a "Checklist of Accountability" that not only sets high standards but also enables those who use it to meet and exceed them."

"Building an organization committed to the highest ethical standards demands more than just following the law," Independent Sector, a coalition of some 550 charities, foundations and corporate philanthropy programs representing thousands of organizations nationwide, announced earlier this year. Taking ethics seriously "also requires fostering practices that create an environment of transparency, accountability, and integrity."

Designed to encourage self-regulation — always a good idea if you don t want the government taking over completely — the checklist calls on nonprofits to:

1. Develop a culture of accountability and transparency.

2. Adopt a statement of values and code of ethics.

3. Adopt a conflict of interest policy.

4. Ensure that the board of directors understands and can fulfill its financial responsibilities.

5. Conduct independent financial reviews, particularly audits.

6. Ensure the accuracy of and make public their Forms 990.

7. Be transparent.

8. Establish and support a whistleblower protection policy.

9. Remain current with the law.

The recommendations, which organizations are encouraged to adapt to their own particular needs, were drawn from the work of the Panel for the Nonprofit Sector, which Independent Sector convened in the fall of 2005.

The checklist "is a direct response to feedback we heard from members of the nonprofit community at the 15 field hearings held across the country by the Panel on the Nonprofit Sector," Diana Aviv, Independent Sector's president and CEO, said in issuing the recommendations.

Follow the guidelines, and who knows? You might also save a bundle on legal fees.

For your own copy of the checklist, recommendations and Nonprofit Sector s Final Report, visit http://www.independentsector.org/.