If you spend five minutes talking with a CEO or CFO of a not-for-profit, they can probably rattle off a list of policies that their not-for-profit has, ranging from gift to compensation policies, among others. With continued focus from the IRS on Form 990, which organizations use to report financial information to the IRS, CEOs and CFOs have begun to wonder if their organizations are missing any policies. It appears that IRS believes that a well governed organization is a tax-compliant organization.
The NonProfit Times recently published an article titled “25 Governance Policies You Need.” While the article is not intended to be comprehensive, it is a great starting point for identifying policies that every organization should have. Outside this core listing of 25 policies, organizations should consider if there any other policies that are unique or missing for them based upon their unique mission and operations.
It is important to remember that every organization should revisit its policies on a regular basis. The policies shouldn’t be filed away and forgotten about, but rather should be reviewed periodically to ensure that any changes in the organization are captured within the existing policies. Develop a tickler system or some other tracker that serves as a reminder to review the organization’s policies to keep them fresh and current.
All of this will help to ensure that you have the right policies for your organization.
The listing of policies cited in the article can be found here.
© 2013 Schneider Downs. All rights-reserved. All content on this site is property of Schneider Downs unless otherwise noted and should not be used without written permission.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.