The Board of Directors have a fiduciary responsibility to the agency and its donors. All assets need to support the mission of the agency and ensure the donor’s intent. All boards should adopt this structure for ideal financial management.
Policies will help to clarify roles and responsibilities and ensure there isn’t a conflict of interest within the agency. They can include items such as expense reimbursement, gift policy, who does what with cash being accepted, investment policies, annual review of compensation, and the roles of the CEO vs the Board vs the finance committee.
Here are some examples of policies nonprofits should consider:
Gift policy
Reimbursement
Conflict of interest
Whistle-blower
Leadership compensation
Bonus structure for staff
Investment policy
