Page 14 - C&A's Nonprofit Board Guide

BOARD & EXECUTIVE DIRECTOR
NONPROFIT BOARD POLICIES & PROCEDURES

implemented by the Board to assist with All policies should be reviewed by legal counsel ROLES
managing the expectations of donors, and before implementing them. Otherwise, you may
also serve as guidance for Board and staff be opening your organization and Board of
members who are on either the asking, or Directors to potential, unintended liabilities.
receiving end, of contributions. Adopting
a gift acceptance policy will help guide Please don’t hesitate to contact us should
the organization with regard to accepting you require any assistance or have any
or declining some types of gifts that may questions related to the various policies
run counter to the nonprofit’s values and and procedures outlined above. Head to
a nonprofit may simply not be equipped to http://bit.ly/2d024a4 for access to various policy
either dispose of or manage the ongoing templates. If you intend to rely on a policy
requirements of maintaining the value of template from us it is important that you use
certain gifts, such as real estate. the template only as a guide. Read everything
Other policies and procedures to consider, carefully to ensure that what is established as
which apply to specific organizations, are YOUR policy is applicable to your situation as
outlined below. well as legal in your state. While many policies
can be somewhat generic and cover all types of
► If the organization has local chapters, branches, nonprofit operations, you may need additional
or affiliates, then the Board should have policies policies to address issues that are unique to your
and procedures that govern the activities of such organization. THERE IS ALWAYS A QUESTION AS TO WHERE A BOARD’S RESPONSIBILITIES END AND
chapters, affiliates, and branches to ensure their MANAGEMENT’S STARTS. THERE ARE NO HARD AND SET RULES; WHAT WORKS FOR ONE
operations are consistent with the organization’s AGENCY MAY NOT BE EFFECTIVE FOR ANOTHER. SOME ORGANIZATIONS HAVE A STRONG
exempt purpose. EXECUTIVE DIRECTOR AND A WEAK BOARD, WHILE OTHERS HAVE A STRONG BOARD
AND A WEAKER EXECUTIVE DIRECTOR. ONE THING IS FOR SURE, RUNNING AN EFFECTIVE
► If the organization invested in, contributed NONPROFIT TAKES AN ACTIVE BOARD OF DIRECTORS AND A DEDICATED STAFF LED BY A
assets to, or participated in a joint venture or STRONG EXECUTIVE DIRECTOR WORKING IN HARMONY TO FORWARD THE MISSION OF THE
similar arrangement with a taxable entity during ORGANIZATION.
the year, then the Board should have in place
or implement a written policy or procedure
requiring the organization to evaluate its
participation in joint venture arrangements ROLES OF THE BOARD OF DIRECTORS
under applicable federal tax law, and take steps
to safeguard the organization’s exempt status
with respect to such arrangements. n general terms, the Board of Directors organization’s mission statement to ensure that
I provides oversight and guidance to the everything they do on behalf of the organization
Executive Director and the nonprofit’s is in furtherance of the organization’s mission.
other staff members. The Board ensures that the As safeguards of the public trust, Board members
organization stays aligned with its mission and are responsible for protecting the organization’s
values in addition to complying with all federal
and state laws. assets; ensuring that the organization’s control
environment is effective; prudently deploying
Specifically, the Board of Directors has resources; and providing direction and governance.
oversight over the following areas:
The Board ensures legal and ethical integrity and
Legal Oversight maintains accountability.
The Board ensures that it is operating in Management Oversight
accordance with its mission and the purpose The Board is responsible for ensuring that the
for which it was granted tax-exempt status. nonprofit organization is operating effectively. It
Board members should constantly re-read the

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