It is probably no surprise that 2009 saw an extraordinary increase in nonprofit organizations that adopted or changed their organizational policies. According to Grant Thorton’s 2009 National Board Governance Survey for Not-for-Profit Organizations, this change is a direct result of the new Form 990 that questions nonprofits’ governance policies and practices. Because the IRS has made transparency in nonprofit governance compulsory, 39% of organizations adopted investment policies, 32% record-retention policies, 26% have adopted whistleblower policies, and over half now have the board or a board committee review the Form 990 before it is filed. Nonprofit boards have also become more diligent about executive supervision, particularly, exercising oversight when it comes to monitoring executive compensation. These are all topics and issues that the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® has encouraged organizations to give attention to for over 10 years.
If you are among the organizations dashing to implement new governance policies, the Standards for Excellence Institute® can keep you from reinventing the wheel, and more importantly, save you time and money. Institute’s educational resource packet, “IRS Form 990 Governance and Management Policy Compendium” provides an easily digested list of all policies that the IRS inquires about. The 22 other Educational Resources Packets include samples of all recommended policies. Institute members are encouraged to download these policies and adopt them to your particular circumstances.
To read the Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® or to order copies, please click here. Discounts available for bulk orders.