INTRODUCTION

At the core of the non-profit organizations` activities are the donors who help fund and donate for these activities. The donors believe that non-profit organizations will act as conduits through which they can be able to stand together and contribute towards a worthier cause. It is therefore vital to address the responsibility of non-profit organizations to donors. This ensures that the donors’ interests and intentions are taken care of by the non-profit organizations. This also helps enhance the donors` trust and confidence in non-profit organizations and thus translating in them having the heart to donate and fund non-profit organizations` activities.

PROPOSED LEGISLATIONS

  1. Non-profit organizations should be held to a high fiduciary standard because they act on particular cause or duties on behalf of the public. These non-profit organizations also get their funding for these specific causes from the public. The belief from the public is that these organizations will aim at serving the public interest accurately and effectively.
  2. Non-profit organizations should ensure that the funds they get from donors are used for the solicitations indicated and not for any other cause unless otherwise stated and agreed upon by the donor. This is to mean therefore that the non-profit organization should ensure that the donors lucidly comprehend the intention of their funds and donations being used for broader activities or purposes. This helps in creating greater accountability and transparency from non-profit organizations.
  3. Non-profit organizations should ensure that they remain honest, transparent and accurate in their disseminated information, accountable, accurate and truthful in their appeals and also be ready to disclose information about their spending and operations. Consequently, they ought to ensure that all the monies and donations are used according to the intended purposes and avoid misusing them for personal purposes.
  4. Non-profit organizations should neither be under the stewardship of government nor should the government have any influence on their functions. In spite of this, the government could still fund the activities of non-profit organizations and also exempt them from taxes and other regulations that might hamper their smooth running. Not forgetting forging a united front in fighting emergencies. Subsequently, the government can also play other regulation roles at both federal and state levels that can help enhance effectiveness and efficiency of non-profit organization management in dealing with their functions. The government can also come up with regulations that ensure the people that run these organizations have sound knowledge in financial aspects to avoid misappropriation of public`s (donors`) funds like it was the case with the American Red cross, when they collected funds intended for 9/11 victims but the money was channeled to fund their other projects (White, 2010).

CONCLUSION

Regulations should be put in place to ensure that non-profit organizations remain true to their core value of serving the public interest. This is because the satisfaction of the needs and intentions of the donors help in building sound public trust and confidence in a non-profit organization`s activities and thus encourage giving which translates to an increased public funding and donations. It is in reference of this that we propose the aforementioned regulations to help address a non-profit organizations` responsibility to donors.

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