Honesty or Transparency?

By Jay Shellum | Trackback URL Add comments
Jay Shellum

In redesigning Form 990 for tax exempt organizations, the IRS has over and over again called for transparency in the industry.  In fact, in a background paper summarizing the redesign process, the IRS said the 990 is “the key transparency tool relied on by the public, state regulators, the media, researchers, and policymakers to obtain information about the tax exempt sector and individual organizations.”

So what exactly is transparency?  It’s just honest communication, right?  Not so fast.

Chris Freeland, who is a pastor at McKinney Memorial Bible Church, wrote in his blog about the difference between honesty and transparency.

“Honesty” means I choose the topic, and speak honestly about it. . . “Transparency” involves honesty, but the two words aren’t synonymous.  Transparency is more than pervasive honesty; it’s open and honest about everything.

That’s the standard the IRS has called for, and it’s a high standard to achieve.  But don’t the communities served by nonprofit organizations and the people who support them deserve that kind of accountability?

Categories: Definitions, General Information, Governance
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