Ethics and Accountability for Nonprofit Organizations

Subject: Business Ethics
Pages: 1
Words: 311
Reading time:
2 min

Ethics and accountability are particularly essential for nonprofit organizations because they lie at the very core of what these organizations aspire to do. To provide context, a business enterprise is, first and foremost, about turning a profit, which means that ethical considerations are important but do not constitute its main goal. Conversely, charitable nonprofits’ primary aim is to help those in need – in other words, it is ethical in nature (National Council 2021). With this in mind, the article provides concise yet useful coverage of a cornerstone aspect of nonprofit organization functioning.

Among the practices for accountability and transparency, financial transparency is likely the most important one because it pertains to the defining activity of a charitable nonprofit. The entire purpose of nonprofit organizations is to redistribute resources – to accept money from the willing donors and put it to a charitable use that donors agreed to. Consequently, they need to “demonstrate the core values of accountability and transparency” in handling money because doing it right is what they exist for (National Council 2021). Cybersecurity measures of a consistent policy of thanking the donors are important concerns, but they only exist to facilitate nonprofits’ primary purpose. This entire purpose is purring the donors’ resources to charitable use, and transparency and accountability are paramount in this process.

Overall, accountability and ethics are essential for the long-term success of nonprofits because of how they operate. Like businesses, nonprofits handle varying amounts of money on a regular basis. Unlike businesses, they attract investment not through economic efficiency and expediency but by relying on public trust and the willingness to support their cause (National Council 2021). An unethical business may still attract investors as long as it offers profit. Nonprofits, on the other hand, have nothing to rely on but public trust, meaning that cultivating and maintaining it is absolutely crucial for long-term success.


National Council of Nonprofits. (2021). Ethics and accountability for nonprofits. Web.