NONPROFIT RESOURCES

Policies EVERY Nonprofit Should Have

 Every nonprofit—regardless of size—should have a core set of governing, financial, operational, and compliance policies. These protect the organization legally, support good governance, and are often required by funders, auditors, and regulators.

Conflict of Interest
A conflict of interest policy helps ensure that board members always act in the best interest of the nonprofit, its mission, and the people it serves. Board members often have professional or personal relationships that could overlap with the organization’s work, especially in small nonprofits, and having a clear policy does not mean conflicts are wrong—it means they are disclosed and handled appropriately. Requiring board members to review and sign the policy each year promotes transparency, keeps everyone mindful of their fiduciary responsibilities, and captures any changes in relationships or employment. It also protects both the organization and individual board members by showing donors, funders, and regulators that decisions are made fairly, ethically, and with proper oversight.

Whistleblower
A whistleblower policy encourages board members, staff, and volunteers to speak up if they see illegal, unethical, or improper behavior within the organization. It explains how concerns can be reported safely and confidentially, and it protects individuals from retaliation for raising issues in good faith. Having this policy helps the nonprofit identify and address problems early, promotes a culture of honesty and accountability, and demonstrates responsible governance to funders, auditors, and regulators.

Document Retention
A document retention policy explains how long the nonprofit keeps important records and when they may be safely destroyed. It helps ensure the organization complies with legal and regulatory requirements, stays organized, and protects sensitive information. The policy also makes clear that documents must not be destroyed if there is an audit, investigation, or legal issue underway, which helps safeguard the organization and its board.

Financial Controls
A financial controls policy explains how the nonprofit handles and oversees its money. It sets clear rules for approving expenses, signing checks, and separating financial duties to reduce errors and prevent misuse of funds. Even in a small organization, having documented controls promotes accountability, protects staff and board members, and gives donors and funders confidence that the organization’s finances are managed responsibly.

Code of Conduct
A code of conduct outlines the standards of behavior expected of board members, staff, and volunteers. It promotes integrity, professionalism, and respect, and helps ensure everyone acts in a way that supports the nonprofit’s mission and values. Having a clear code of conduct protects the organization, builds trust with the community, and provides guidance for addressing concerns if behavior does not meet expectations.