Governance

There is no federal law that prohibits nonprofits from compensating their board members but some states may forbid compensation for board service.

One of the most constructive and proactive ways a board can send a message that its organization is committed to accountability, responsiveness, and stewardship is to draft a code of ethics to guid

What is conflict of interest?

A conflict of interest arises when a board or a staff member is in a situation where his decision making may be impaired by personal, financial, or other busin

ORG Decision-making Policy

To promote making good decisions, ORG adopts the following principles:

A gift acceptance policy explains an organization’s position on accepting both cash and non-cash gifts and outlines any prohibitions on the type of donor or donations to be accepted by the organiza

The board must ensure adequate resources to allow the organization to carry on its mandate. Financial resources feed into the health and stability of the organization.

• Define the decision to be made.
• Set a specific deadline by which the decision needs to be made.
• Identify who should be involved in the process and whether board approval will b

The purpose of the general liability insurance is to pay for damages that the organization is liable for and to cover legal costs for its defense.

Through incorporation the board and the managers create a legal entity that will protect them from potential personal financial losses.

Indemnification is the organization’s direct expression of willingness to protect its board members (and its senior staff) from the financial burdens of liability.

Investment policies

Investment policies refer to policies the board has defined and/or approved guiding how the various organizational funds should be invested.

A board officer is a board member with additional duties and responsibilities. State laws stipulate which officer positions a nonprofit must have.