Ballet Arkansas' production of The Nutcracker. Picture provided by the Arkansas Arts Council.

The Arkansas Diamond Standards™ provide the foundation for learning and for equipping nonprofit organizations to achieve their highest potential. The Arkansas Diamond Standards are guiding principles and practices for nonprofits to achieve excellence in four areas:  Mission, Money, Management and Governance.  The Arkansas Diamond Standards were developed from some of the foremost scholarship on excellent, high performing nonprofit organizations.

ACE members have the opportunity to use the Diamond Standards Assessment Tool to self-assess their organization’s strengths and weaknesses, and identify steps to excellence.

ACE members may also access the Basic Infrastructure Checklist, a checklist of suggested policies and procedures for nonprofit organizations. 

Please find a copy of the Arkansas Diamond Standards Booklet below: 

  Arkansas Diamond Standards Booklet 

Why the Arkansas Diamond Standards™?

The mandate for reform of nonprofit organizations has never been stronger.  Highly publicized abuses have led to legislative reforms and stricter scrutiny by regulators at both state and federal levels.  The public expects greater accountability, and funders require more evidence of increased capacity and improved results in making decisions on grants.

ACE was founded on the premise that, by uniting all interested parties in a common purpose with common goals and a consensus approach, not only can we address the mandate for reform, we can even transform the sector, equipping charities large and small, in all lines of service, to attain their full potential for high performance and large scale social impact.

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.


MANAGEMENT

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.


GOVERNANCE

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.