ICCSA 7 Principles of Accountable Stewardship

The organization has a commitment to the Christian faith based on belief in God the Father, the Son, and the Holy Spirit. The organization demonstrates an ethos based on Christian values in the context of Indonesia's diversity.

Standard 1.1 Christian Identity

The organization must publicly declare Christian ethos and values in their Statutes and Bylaws, vision, mission, and activities.

Standard 1.2 Annual Affirmation

Every Board member as well as the executive leaders of the organization each year affirms a written statement of faith that is consistent with the principles of the organization.

The organization is governed by an independent, active board that establishes policy and reviews the impact of the organization’s activities. Leadership is critical and sets the culture of the entire organization. The members of the organization’s Executive Board must be responsible, competent, inclusive and comply with their legal obligations.

Standard 2.1 Board Composition

  1. The composition of the organs of the organization is determined in accordance with the applicable laws and regulations.
  2. The governing and supervisory board shall routinely ensure that relevant policies are implemented in the governance of the organization.
  3. The board members must be independent from one another including the executives (e.g. CEO, Lead Pastors, and others.)
  4. No member of the board in substance may concurrently become managers or employees of the organization.
  5. The number of members on the governing and supervisory board must be odd.
  6. The governing and supervisory board must have a policy addressing the performance and length of service of its Board members.
  7. The governing and/or supervisory board is composed of members with diverse backgrounds and inclusion of at least one member highly competent in finance.
  8. The organization must have a selection process for recruiting appropriately skilled and diverse Board members.

Standard 2.2 Board Scope of Work

  1. The organization must hold annual meetings to inform its members of the organization’s activities, performance, achievements, and provide space for members to ask questions.
  2. The Board keeps proper written minutes of Annual Meetings.
  3. The Board ensures that the organization complies with the organization’s governing documents.
  4. Each Board member, officer, and key staff member, when elected or appointed, goes through an induction process and receives a copy of ICCSA’s 7 Principles, the organization’s governing documents, and other relevant policies.
  5. The organization must have a method to regularly review and improve the performance of its Board.
  6. The governing board must regularly review the performance of the executives based on reasonable criteria.
  7. The Board maintains control over the organization.
  8. The Board establishes policies and sets the direction for the organization.
  9. Board members act in the best interests of the organization.

Standard 2.3 Board Meetings

  1. The Board holds full agenda meetings annually, semi-annually, or quarterly, and the discussion is not restricted to one specific issue.
  2. The Board meeting quorum is determined in the organization's Statutes and Bylaws.
  3. The Board keeps proper written minutes of all Board meetings.

Effective management is critical to achieve the organization’s mission, vision, and objectives in the form of a strategic and annual business plan.

Standard 3.1 Executive Responsibilities

  1. The Board ensures that all legally required reports are prepared factually, accurately, and submitted in a timely manner.
  2. The Board ensures that the organization adheres to all the requirements of ICCSA’s 7 Principles.
  3. The Board must conduct regular program evaluations.

Standard 3.2 Recruitment

  1. The organization must have a selection process for recruiting appropriately skilled and diverse executives.
  2. Each Board member, officer, and key staff member, when elected or appointed, goes through an induction process and receives a copy of ICCSA’s 7 Principles, the organization’s governing documents, and other relevant policies.
  3. The organization must have a method to regularly review and improve the performance of its executives.

The governing and supervisory board must undertake proper financial oversight of the organization.The organization shall demonstrate transparency and proper financial oversight through an independent financial audit, set compensation of its top leader and address related-party transactions in a manner that demonstrates integrity and propriety.

Standard 4.1 Financial Reporting and Audit

  1. The organization must maintain detailed accounting records, and prepare complete and accurate annual and interim financial statements, including a statement of financial position, comprehensive income report, statement of changes in net assets, cash flow statement, and notes to financial statements.
  2. The executive management shall submit its financial reports to the governing board to ratify and distribute them to all of the governing and supervisory board members.
  3. Each year the governing board must review and approve the final financial statements of the organization, and must review any audit report and/or management letter provided by the auditor.
  4. Organizations with an annual revenue of Rp. 500.000.000 (five hundred million rupiah) or more (especially for foundations) must be audited annually by an appropriately qualified, independent auditor.
  5. Organizations with an annual revenue of less than Rp. 500.000.000 (five hundred million rupiah) (especially for foundations) must be reviewed for compliance with applicable statutory and regulatory standards.
  6. The supervisory board is responsible to select and appoint the external auditor of the organization.
  7. The supervisory board or a designated board member must review the quality of the audit or review at least annually which includes:
    • internal controls and financial policies
    • compliance with applicable laws and regulations
    • the response of management to each of the auditor’s recommendations (if any) for the prior year
    • the audit program of the auditor
    • the annual financial statements

Standard 4.2 Financial Oversight

  1. The supervisory board or a designated board member must ensure that the reports provided to it contain sufficient detail, in appropriate formats, to allow it to determine the financial health and performance of the organization.
  2. The governing and supervisory board approves the organization’s annual operating budget and monitors the organization’s performance in relation to the annual budget.
  3. The governing board approves the total compensation of the executive board chair, CEO/Lead Pastor.
  4. The executive board provides for effective and efficient management of the organization by ensuring that adequate resources are directed to administration and fundraising.

Standard 4.3 Conflict of Interest Policy

  1. The organization has a written conflict of interest policy which ensures that:
    • All parties with a conflict of interest (direct or indirect) are excluded from the discussion and vote related to approval of the transaction or decision;
    • The organization obtains reliable comparability information regarding the terms of the transaction from appropriate independent sources such as competitive bids, independent appraisals, or independent expert opinions;
    • The governing board affirmatively determines that entering into the transaction or decision is in the best interests of the organization; and
    • The organization documents the elements described above, as well as the governing board’s approval of the transaction or decision.
  2. Board members and the management must declare any real or perceived conflict of interest and respond to it according to the written conflict of interest policy.
  3. The organization must not make a loan to staff, volunteers or Board members unless the loan is documented and approved by the Board, and is either on arm’s length terms providing a commercial return, is clearly part of an approved remuneration package, or is otherwise within the charitable purposes of the organization.

The organization must be transparent and accountable to its stakeholders.

Standard 5.1 Transparency of Information

  1. The organization must produce an annual report which is available to members, donors, staff, volunteers and members of the public. The report must contain sufficient detail to enable readers to gain a reasonable overview of the activities, performance and achievements of the organization.
  2. The organization must supply at any time a copy of its most recent audited/reviewed financial statements to any legitimate stakeholder who submits a written request.
  3. The organization must ensure that postal, email and telephone contact details are kept up-to-date on websites, reports, publications, and in the ICCSA Accredited Member Directory.
  4. The organization must ensure that a suitable mechanism exists for members, donors, volunteers and other interested parties to receive communications about the organization's activities and progress in between annual meetings.

Standard 5.2 Ethical Honesty

  1. The governing board must be able to justify the integrity and propriety of the remuneration package of its top executive and address related-party transactions.
  2. In its actions to all related parties, the organization’s representations of fact, descriptions of the financial condition of the organization, or narratives about events must be current, complete, and accurate.
  3. The organization must honour statements, promises, or agreements it makes.

 

The organization upholds the highest standards of integrity, adheres to applicable laws, and operates in accordance with its own governing documents. The organization must take steps to identify, respond and monitor risks to which it is exposed.

Standard 6.1 Legal Compliance

  1. The organization understands and complies with national, provincial, and district/city laws and regulations.
  2. The organization respects the dignity and privacy of the people it serves. All personal information about beneficiaries is treated confidentially.
  3. The organization informs ICCSA when it is involved in litigation, an investigation, or an audit by any government authority or another party unless advised otherwise by their legal counsel.

Standard 6.2 Risk Management

  1. The organization must develop, implement, and monitor a risk management plan that identifies the significant risks to which the organization is exposed, classifies them according to severity and likelihood, and documents appropriate management strategies and insurance programs.
  2. The organization’s risk management plan must be reviewed at least annually.
  3. The organization must take reasonable steps to ensure that it meets its legal obligations and in particular must not act in a way which could be affecting the continuity or the sustainability of the organization’s operations.

Standard 6.3 Internal Control

  1. The organization must have rigorous internal control procedures and policies to satisfy the internal control objectives of all transactions in the organization, and a monitoring system to measure the effectiveness.
  2. The organization has appropriate controls in place to ensure adequate direction and control of its subsidiary, branch or foreign activities, whether carried out directly or by an intermediary. (If applicable)

All gift appeals and stewardship activities of the organization must be carried out in a truthful and ethical manner. The organization is ethical in its fundraising activities and respects the dignity and interests of the donor.

Standard 7.1 Ethical Fundraising

  1. Paid fundraisers are not compensated by commissions or other payments based on either the number of donations received or the value of funds raised
  2. The organization advises and encourages donors to seek legal advice before making a gift to the organization, and must not knowingly accept a gift if it appears to the organization that it is a major financial commitment by the donor which, in the opinion of the organization’s stewardship representative or Board, might significantly affect the donor’s financial position and the donor has not considered his or her financial capacity to make the gift.
  3. The organization must be aware of and prevent any act or attempt of money laundering.
  4. Fundraising solicitations must:
    • truthfully describe the organization’s activities for which the donations will be used and
    • respect the dignity and privacy of those who benefit from the organization’s activities.
  5. Donors are kept fully informed with comprehensive and current information about the organization and its ministries.
  6. Donors and prospective donors are made known, upon request, whether an individual soliciting funds on behalf of the organization is a volunteer, an employee, or a fundraising consultant.
  7. Anyone authorized to solicit or receive funds on behalf of the organization must:
    • adhere to all the provisions of the Ethical Fundraising standards
    • act with fairness and integrity in accordance with all applicable laws
    • adhere to the organization’s conflict of interest policy
    • not induce a donor to relocate their giving intentions from another organization and to make their giving to your organization instead. (? need to reconfirm if we want to use this point)
  8. The organization provides appropriate training and controls so that its fundraising representatives can uphold the aforementioned expectations.

Standard 7.2 Management of Gifts

  1. The organization must honour statements made about how it will use gifts that it seeks. If a donor gives any special instructions with the gift, and the organization accepts the gift, it must honour the instructions.
  2. The organization must give donors appropriate and timely receipts for all gifts.
  3. The organization must have a plan for how funds will be applied in the case of an appeal for a particular purpose being oversubscribed and (if appropriate) undersubscribed, and will communicate its intent at the commencement of the appeal or as soon as practicable after the risk of oversubscription became apparent.

Standard 7.3 Respect towards Donors

  1. The privacy of donors is maintained, including the donor’s request to remain anonymous, unless the law requires otherwise.
  2. The donor or prospective donor list is not exchanged, sold, rented, or otherwise shared externally. If an external fundraiser is retained, access to the master donor list is limited and kept under strict control.
  3. Donors and prospective donors' requests to limit the frequency of solicitations or to not be solicited must be honoured. The organization ceases solicitation of a prospective donor whenever requested.
  4. The organization must supply a summary report on the financial and operational results of any significant specific purpose appeal, in response to a written request from a donor or volunteer of that project in accordance with the organization’s policy.
  5. The organization must handle complaints regarding the stewardship of gifts respectfully by:
    • responding promptly to a complaint by a donor or prospective donor about any matter that is addressed in these standards.
    • developing and implementing a process for addressing complaints.
    • informing the governing and supervisory board at least annually of the number, type, and disposition of any complaints received from donors or prospective donors.
  6. The organization must provide donors with timely thank-you letters.
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