Accountability - What makes it work

Regarding our nation’s current financial environment, I have come up with a comparison I believe to be applicable. I have been in nonprofit work for over 20 years and can say with some authority that a problem with many nonprofit organizations is a lack of accountability. You see, in the for-profit world accountability is always present in the form of profit. If you don’t make a profit, the business does not last. However, in the nonprofit world, since the bottom line is not usually a direct result of revenue generated through doing business, “profit” cannot be used to determine success.

With nonprofits you must track an organization’s success at achieving its exempt purpose. There should be metrics used to evaluate the business that do not necessarily have a correlation to money raised. This can mean that the methods of evaluation may be very subjective and can be skewed by an emotional investment in the organization’s purpose. Subsequently, there may be times of financial need in order to continue operation. The solution for this dilemma:  raise more money.

Our government operates much like a nonprofit. Even though it brings in considerable funds through taxation and is responsible for the oversight of this nation’s monetary system, its purpose is to manage the country by making decisions that will be of the most benefit to its people. These decisions are often very subjective, as well (as are the metrics used to evaluate them). Regardless of the cost, is it what “the people” need?

This is how we get federally funded programs that 1) Try to determine why turtles cross the road, and 2) Do monkeys like cocaine? – both projects funded in the recent stimulus bill. Spending is only accountable to the very ones who have the most interest in funding the project. So, when times of financial need arise in order to continue a program or project (or just to keep the government working), the solution is:  print more money.

Just like with nonprofit organizations, until accountability is driven by those who can honestly evaluate the need for a program and its success versus the actual cost of providing the program, this nation will always be faced with financial needs and the temptation to print money we do not have to pay for them.

Political alliances aside, we must hold all of our government officials accountable for the way our nation’s money is spent. Right now, the fox is guarding the hen house and we cannot fix the problem just by changing foxes.