Standards of Excellence
Good Operating Practices for Voluntary Health Agencies

BASIC ORGANIZATION

Standard 1: The organization's governance documents state that: a) its primary purpose is health-related and national in scope; b) there is a procedure for governing the organization; c) the organization conforms with applicable state and federal law regarding the filing of governance documents; d) the organization has been in operation for no less than three years; and e) relationships with any affiliated organizations using the same name and logo are codified in a written agreement.

GOVERNANCE

Standard 2: The organization's governing arrangements include a volunteer board of directors with an established committee structure. The duties and responsibilities of the board, officers and committees are in written form and communicated to the respective parties.

Standard 3: The board has a minimum of eight members.

Standard 4: The organization's bylaws provide for rotation of board members.

Standard 5: The organization's bylaws provide for election of board members and officers and a method of filling interim vacancies.

Standard 6: Board members serve without compensation, except in those instances where the chief staff executive is a member of the governing body.

Standard 7: The organization has a conflict of interest policy applied to board members and staff, which is reviewed periodically (every three years) by legal counsel to ensure compliance with applicable state and federal law.

Standard 8: The organization has a policy which encourages diversity within its board. This includes consideration of age, gender, culture, race or ethnic origin, geographic distribution and other factors relevant to the organization's mission.

Standard 9: Organizations engaged in corporate relationships have a corporate relationship policy that adheres to the Council's "Guiding Principles for Voluntary Health Agencies in Corporate Relationships."

Standard 10: Organizations that conduct and/or fund biomedical research which involves the use of animals have a board-approved policy that adheres to the Council's policy entitled "Use of Animals in Biomedical Research."

Standard 11: The board of directors meets a minimum of three times annually, with at least two being face-to-face meetings. There is evidence of actual board member attendance at meetings. The board has an individual attendance policy which limits the number of absences.

Standard 12: The board establishes policy which includes control of: a) financial operations; b) planning and program activities; c) administrative policies affecting public accountability (e.g., reporting of financial operations); d) fundraising practices; and, e) the chief staff executive's selection, performance review, and discharge.

Standard 13: The organization's bylaws provide that the board meetings have representation of at least a simple majority of eligible voting members (in person or by telephonic/electronic conferencing), unless otherwise required by state law to have greater than a majority in attendance.

Standard 14: The organization's bylaws provide that the board has at least ten days' notice of routine meetings and adequate information about action items on the agenda.

PERSONNEL POLICIES AND STAFF

Standard 15: Organizations with three or more paid staff have a written statement of personnel policies, reviewed periodically (at least every three years) by legal counsel to ensure compliance with applicable state and federal law and reviewed annually by the chief staff executive or other authorized senior staff person to assure appropriate personnel practices.

Standard 16: The organization employs a chief staff executive directly or through outsourced management.

PROGRAMS

Standard 17: The organization is engaged in any one or more of the following programs: research, professional education, public education and health promotion, health services, community services, advocacy, or social action.

Standard 18: The organization spends at least 65 percent of annual expenses for program services.

FINANCE

Standard 19: The organization operates with an annual budget under defined procedures of construction, examination, and board approval.

Standard 20: The organization maintains financial records and prepares financial statements in accordance with generally accepted accounting principles (GAAP), as certified by a qualified independent public accountant. The financial statements are reviewed by the board and made available to the public upon request within 6 to 12 months after the close of the fiscal year. The latest edition of the Audit and Accounting Guide for Not-for-Profit Organizations, published by the American Institute of Certified Public Accountants (AICPA), the various pronouncements from AICPA and the Financial Accounting Standards Board (FASB), and Standards of Accounting and Financial Reporting for Voluntary Health and Welfare Organizations (The Black Book), published by the National Health Council and the National Assembly, constitute GAAP.

Standard 21: The organization receives at least 25 percent of its financial support from direct, voluntary public contributions or an otherwise substantial amount as determined by the National Health Council based upon the totality of the circumstances.

Standard 22: The organization has a formal policy for building its net assets and establishing an appropriate unrestricted operating reserve.

Standard 23: The organization does not have an operating deficit in its unrestricted net assets for more than the three previous consecutive fiscal years.

FUNDRAISING

Standard 24: Publicity and promotional activities are carried out in a manner which encourages respect for donors, potential donors, and those whom the organization serves. Fundraising and promotional materials are truthful and not deceptive.

Standard 25: There is communication to potential donors of factual descriptions of the needs served by the organization, the volume and character of its services and accomplishments, and, where pertinent, expert opinions. The organization is capable of substantiating all such information.

Standard 26: The organization includes on any websites that solicit contributions the same information that is recommended for annual reports (see Standard #37), as well as the mailing address of the organization and electronic access to its most recent IRS Form 990.

Standard 27: The confidentiality of contributor giving histories is protected.

Standard 28: The organization addresses privacy concerns of donors by (a) providing, preferably in all written appeals to first-time donors but not less than annually, a means (e.g., a check-off box) for both new and continuing donors to inform the organization if they do not want their name and address shared outside the organization and (b) providing a clear, prominent, and easily accessible privacy policy on any of its websites that tells visitors (i) what information, if any, is being collected about them by the organization and how this information will be used, (ii) how to contact the organization to review personal information collected and request corrections, (iii) how to inform the organization (e.g., a check-off box) that the visitor does not wish his/her personal information to be shared outside the organization, and (iv) what security measures the organization has in place to protect personal information.

Standard 29: If unordered merchandise is used to encourage donations, recipients are prominently and clearly informed that they are under no obligation to pay for or return any such items or to make a donation to the organization.

Standard 30: Volunteers who approach the public seeking contributions are provided with appropriate identification.

Standard 31: Fundraising techniques intended to deceive, coerce, harass, or intimidate potential contributors are not utilized. When the organization's volunteers include people in uniform participating on their own time or individuals who have authority over the person being asked to contribute, special precautions are taken to assure that this standard is not violated.

Standard 32: If merchandise, services or admission to fundraising events are provided in return for payment, the organization specifies that portion of the payment which is tax deductible as a charitable contribution. Any offer or sale of merchandise made on behalf of the organization specifies the amount or percentage of money from the sale which will actually go to the organization, the duration of the campaign (e.g., the month of October) and any maximum or guaranteed minimum contribution amount (e.g., up to a maximum of $200,000).

Standard 33: The organization obtains prior permission before using the names of individuals, organizations, or companies in ways which imply endorsement of program or fundraising activities.

Standard 34: Fundraising materials distributed to the public contain the name of the organization, its purpose, and the address from which additional information may be obtained.

Standard 35: The organization makes available upon request descriptive and financial information for all substantial income and revenue derived from authorized commercial activities conducted by for-profit subsidiary organizations associated with the voluntary health agency's name.

Standard 36: The organization does not enter into agreements with organizations or individuals to raise funds on a commission or percentage basis.

Standard 37: The organization ordinarily spends no more than 35 percent of its public support income on fundraising.

ACCOUNTING AND REPORTING

Standard 38: The organization's accounting systems enable it to exercise proper control over contributions and accurately allocate expenditures to various program, fundraising, and administrative functions.

Standard 39: The organization has an audit of national office operations performed annually by an independent certified public accountant.

Standard 40: The organization prepares annually a report to the public which includes: a) a full account of activities and accomplishments; b) a roster of board members that specifically identifies the officers of the board (e.g., chair, vice chair, secretary, treasurer) and includes the geographic locations (city, state) of board members; c) name(s) of chief administrative personnel; d) a report of financial operations of the national office in conformity with generally accepted accounting principles (GAAP); and e) a consolidated report of financial operations of the national office and affiliates, where affiliates exist, in conformity with GAAP. The annual report is available within six to twelve months after the end of the organization's fiscal year.

EVALUATION

Standard 41: The organization has a board-approved policy that establishes a formal mechanism for evaluating its operations and program activity effectiveness, no less than every two years, as measured against the organization's purposes, resources, and potential. The organization can produce evidence of undertaking this evaluation and of directing the results to the appropriate body(ies) within the organization.

As of October 2005.