Nonprofit Policies

A nonprofit organization is only as strong as its policies and its practices in adhering to those policies. All too often when nonprofits encounter legal trouble, it’s because they didn’t have the right policy in place or no one was holding the organization accountable to those policies. A nonprofit’s 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, conflict of interest policy with corresponding questionnaire, social media policies, and more.

Financial Policies
A nonprofit’s financial policies help ensure that all financial decisions comply with the regulations set forth by federal and state governments for the operation of nonprofit entities. These policies include separation of duties, authority to contract, credit card use policy, procurement, budgeting, tracking receivables and payables, etc. These are a critical component of reducing risk to the nonprofit and protecting both the organization and its board members.

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
Programs are another area of risk for a nonprofit organization and another area where policies help protect the organization and its board members. Program policies also help ensure the organization continues to align with the mission and scope stated in federal and state filings.

Need help developing policies to protect your organization? Contact us today.