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Introduction to the Arkansas Diamond Standards
The Arkansas Diamond Standards™ are principles and practices that guide nonprofits to excellence in four areas: Mission, Money, Management and Governance. Use this document to learn about best management practices of a nonprofit organization:
The Diamond Standards Assessment Tools are sets of questions regarding performance of a nonprofit, and best management practices. You can self-assess your organization’s strengths and weaknesses, and identify steps to excellence by going through the Tools. Instructions are listed on the document of each Tools. Click each link below to download the Tools:
The Diamond Standards Basic Infrastructure Checklist is a quick-reference checklist of suggested policies and procedures for nonprofit organizations. Click here to download the Checklist:
MISSION All authorities emphasize the critical importance of clearly articulating the organization's alignment of Planning and Strategy, Programs with the course set by Mission and Vision, Purpose in statements of Mission and Vision derived from core Values, and Public Communication and Accountability that upholds a culture of openness and disclosure which helps assure fidelity to the public trust and the organizational Mission. MONEY To achieve the MISSION, adequate financial resources must be developed, managed, protected, and deployed, all in compliance with law. Financial Development activities must exhibit the highest ethical standards, employing honest, accurate information about the organization, honoring donor intent, and respecting donor privacy. Sound Financial Management requires the Board to approve realistic budgets, monitor financial performance, establish proper accounting controls, and engage independent review of its financial statements. Financial Protection uses a Risk Management process that eliminates unnecessary risks, employs loss prevention programs, and provides for appropriate insurance coverage. The Board understands its fiduciary duties and monitors the organization's Legal Compliance, by adhering to all applicable laws and regulations. This view of management emphasizes applying internal processes to transform human, information and organization capital into both program and financial results. In managing its Human Capital, the organization has systems for recruiting, training and managing employees and leveraging its human resources with volunteers. Information Capital includes information systems and computer technologies that support management and enhance communications. Organizational Capital includes Collaboration that eliminates duplication and creates efficiency and synergy, as well as Innovation processes, which drive the quest for continuous learning and quality improvement. Effective governing boards are needed to set policy and provide oversight of MANAGEMENT and MONEY to assure fidelity to the MISSION. The Board-CEO Relationship requires the Board to hire and supervise the CEO, who in turn is responsible for managing all other staff. The Board Composition and Structure of its committees should be carefully designed to create independence and to facilitate the work of the Board. The Board's Functioning through its meetings and processes should be sufficient to fulfill its roles and responsibilities. The Board's Role of governance should be clearly defined and distinct from the management role of the CEO.
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Arkansas Diamond Standards Booklet
