Nonprofit Policies
A nonprofit organization is only as strong as its policies and its daily practices to adhere to those policies. All too often when organizations encounter legal trouble, it’s because they didn’t have the right policy in place or organizational leaders, or staff, failed to follow the policies. These policies are a key part of the guiding documents for how the organization operates and an important part of reducing risk to the organization.
Sarbanes-Oxley Policy
While the Sarbanes-Oxley Act primarily applies to publicly traded companies in the United States, there are components of the act that impact certain nonprofit organizations as well.
Governance Policies
This set of policies dictates how the nonprofit organization will be governed in addition to its bylaws. Policies include committee charters, Sarbanes-Oxley requirements, succession plan, annual filings, officer descriptions, conflict of interest, social media and other necessary policies to properly govern the internal and external affairs of the organization.
Financial Policies
A nonprofit’s financial policies help ensure that all financial decisions comply with regulations set forth by federal and state regulatory bodies for legal operation of a nonprofit organization. These policies include separation of duties, authority to contract, credit card use procedures, procurement, budgeting, and compliant procedures for recipients of federal grant funds. Financial policies are a critical component of reducing risk to the nonprofit and protecting both the organization and its board members.
Employee Policies
Employee policies establish the organization’s expectations for each staff member and help guide employees to understand how best to perform their duties. Clarity is key when establishing employee policies. These policies should guide and reinforce your corporate values and help establish standards of conduct, attendance requirements, compensation and benefits, and workplace safety guidelines while complying with required state and federal law.
Volunteer Policies
Volunteers are an important part of advancing the mission for many nonprofit organizations, but they also can create substantial risk for the organization. Volunteer policies help ensure that the organization has a structure in place to welcome volunteers while also protecting the organization and the people it serves.
Program Policies
Program policies help ensure the organization continues to align with its mission and scope stated in federal and state filings. Program policies focus on a specific program or activity of the nonprofit, and help provide a framework for both program participants and staff administering the program to understand the program’s legally permissible activities.
