The Nonprofit Advisor will feature quick tips focusing on policies that all nonprofit organizations should consider establishing, and the key components those policies should include. In this issue we focus on the reasons for establishing the policies themselves.
Formal policies are vital to any nonprofit organization. Policies not only provide guidance, but they protect the organization from legal challenges, provide compliance with regulations and funding agencies, and set the tone for ethical and transparent conduct by employees. Policies also allow organizations to operate consistently when similar situations arise or when there is turnover in management and governance.
Policies should be well thought out and thoroughly documented by the organization to be the most effective. Policies are not static and should be considered
periodically for updates in regulations, laws and the activities of the organization.