Principles of Good Governance for Nonprofits
Here are some governance policies that are expected of a charitable organization:
- A nonprofit organization must comply with all applicable laws and regulations. If the organization conducts programs outside it's borders, it must also abide by applicable international laws, regulations and conventions.
- A nonprofit organization should adopt a code of ethics with which all of its directors or trustees, staff, and volunteers are familiar and with which they comply.
- A nonprofit organization should implement policies and procedures that enable individuals of the organization to report on illegal practices or violations of organizational policies.
- A nonprofit organization should implement policies and procedures to protect the organization's important data, documents, business records and personal data of it's employees.
- A nonprofit organization should make information about its governance, finances, programs and activities, widely available to the public.
- A nonprofit organization must have a governing body that is responsible for reviewing the organization's mission, annual budget and financial transactions, and fiscal and governance policies.
- The board of a nonprofit organization should include members with the diverse backgrounds, including, ethnicity, race, and gender, experience, and organizational and financial skills necessary to advance the organization's mission.
- Solicitation materials and other communications addressed to donors must clearly identify the organization and be accurate and truthful.
- A nonprofit organization must provide donors with specific acknowledgments of charitable contributions, in accordance with IRS requirements.
- A nonprofit organization should provide appropriate training of the people soliciting funds on its behalf to ensure that they understand applicable local laws, and do not employ techniques that are coercive to harass potential donors.
- A nonprofit organization should not compensate fundraisers based on a commission or a percentage of the amount raised.
- A nonprofit organization must keep complete, accurate financial records. Its board should receive and review timely reports of the organization's financial activities.