A few weeks ago, in this 52 Tips in 52 Weeks column, I noted that marking birthdays reminded me of the annual activities nonprofits need to take care to address in the course of regular business. That article focused primarily on some of the annual responsibilities and roles that need to be carried out by each nonprofit’s board of directors.
Of course, it is not solely the board that needs to keep an eye on its annual responsibilities. Indeed, the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® cites annual tasks ranging from mission and program all the way to public policy and lobbying.
Take a few moments to get out your organization’s annual work plan and ensure that the following activities are featured prominently:
- Employee performance evaluations are completed annually
- The Form 990 is sent to the IRS annually
- An audit is performed by a certified public accountant (for organizations with revenue over $500,000) annually
- Release an annual report that includes a mission statement, information about the organization’s programs, a list of the board and management staff, and financial information (specifically, a summary statement of financial position and statement of activities)
- Follow the IRS and any state level charitable solicitations and disclosure requirements on all funding solicitations and receipts
- Maintain at least a 3:1 ratio of dollars raised vs. the amount spent on fundraising
- Ensure that all professional solicitors and fundraising consultants employed by the organization are properly registered with the appropriate authorities
- Register with the appropriate authorities if employing/engaging a lobbyist.
For more information on the best practices in nonprofit management and governance described in the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® or to order copies of the Code, click here. Discounts are available for members and those who order in bulk.