Governance Policy

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Wikis > Governance Policy

Drafting a governance policy is an important step in ensuring that your Non-Profit is up-to-date on the important features of a comprehensive governance policy. When the IRS reviews an application for a 501(c)(3) Tax-Exempt Organization, it will look for the following established policies:

1. bylaws that govern the non-profit, including how the Board of Directors is elected

2. a conflict of interest policy

3. a compensation policy

4. an investments policy

5. a fundraising policy

6. documentation of governance decisions

7. document retention and destruction

8. a whistleblower claims policy

The governance policy is most importantly applied to the Board as it relates to their fiduciary duty to the non-profit.

An extensive discussion on the contents of an effective governance policy are discussed in an IRS publication.]