Having well-documented policies can assist a nonprofit in having good governance and financial management. Below are some policies that are recommended for nonprofits to follow and have in writing.

Whistleblower protection policy: encourages employees to report financial or other improprieties by establishing procedures to keep the employee’s identity confidential and protects the employee from retaliation.
Document retention/destruction policy: provides guidance on how long documents must be kept by the nonprofit.

Gift acceptance policy: governs the receipt of “non-cash” gifts such as in-kind and unusual gifts (land, vehicles, artwork, stock, etc.) and establishes procedures for reviewing, accepting, and substantiating those contributions.
Conflict of interest policy: is used to help identify, disclose, and handle situations where a financial or other type of conflict may exist.

Investment policy: defines the nonprofit’s objectives for investing, identifies the risk tolerance and who is responsible for the management of the investments.
Joint venture policy: requires a nonprofit to identify, disclose, and properly manage joint ventures (relationships with for-profit businesses).

Capitalization policy: is used to set a threshold, above which qualifying expenditures are recorded as fixed assets, and below which they are charged to expense as incurred.

Disaster recovery plan: documents a process or set of procedures to recover and protect IT infrastructure in the event of a disaster.

There are several other policies nonprofits can have in place, but this is a good starting point. If you have any questions or would like a sample of any of these policies, please contact your Hawkins Ash CPAs representative.

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Briana Peters
I joined Hawkins Ash CPAs in 2013 and am currently an audit manager in the firm’s Green Bay office. As an in-charge accountant, I focus on nonprofit organizations. I am involved in all parts of the audit process including financial statement preparation. I also perform audits for employee benefit plans and reviews and compilations of nonprofits and small businesses. I am a member of the firm’s nonprofit service group as well as the employee benefit plan service group.

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