Funders, auditors, and the IRS expect a baseline set of governance and financial policies, no matter your size or focus area. Use these as a checklist of best practices. Expand each to see what a strong version should cover.
01
Conflict of Interest PolicyKeeps decisions in the organization's interest, not personal gain.
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Should cover
- Annual written disclosures from board and key staff
- Clear definition of an "interested person" and "financial interest"
- Recusal and documentation procedure for conflicts
- Review process for related-party transactions
02
Spending & Financial Controls PolicyDefines who can authorize, approve, and handle money.
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Should cover
- Approval thresholds and authorization levels by role
- Segregation of duties between approving, paying, and recording
- Credit-card, reimbursement, and check-signing limits
- Monthly reconciliation and board financial review
03
Procurement & Competitive Bidding PolicyEnsures fair, documented purchasing, and protects grant funds.
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Should cover
- Dollar thresholds that trigger multiple quotes or formal bids
- Sole-source justification and approval rules
- Vendor conflict-of-interest checks and documentation
- Alignment with federal grant rules (2 CFR 200) where applicable
04
Whistleblower PolicyLets staff report concerns without fear of retaliation.
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Should cover
- A confidential channel for reporting misconduct
- Explicit non-retaliation protection
- Investigation procedure and designated contact
- Recordkeeping of reports and resolutions
05
Document Retention & Destruction PolicyDefines how long records are kept, and when they're destroyed.
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Should cover
- A retention schedule by record type
- Secure destruction methods
- Legal-hold suspension during litigation or audit
- Handling of electronic records and backups
06
Gift Acceptance PolicyClarifies which gifts you'll accept, and how you'll handle them.
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Should cover
- Acceptable gift types (cash, in-kind, stock, planned)
- Review process for restricted or complex gifts
- Donor acknowledgment and IRS substantiation
- Gift agreements for major or restricted gifts
07
Board Governance & BylawsSets the rules for how the board operates and decides.
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Should cover
- Board roles, terms, and term limits
- Quorum, voting, and committee structure
- Officer duties and succession
- Annual review and documented meeting minutes
08
Investment & Operating Reserve PolicyGuides stewardship of cash and reserves over time.
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Should cover
- A target operating reserve (often 3 to 6 months)
- Allowed investment types and risk tolerance
- Who is responsible for oversight
- A schedule for periodic review
These summaries are a starting point, not legal advice. During an engagement we tailor full, board-ready policy templates to your size, sector, and funders.
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