The Policies Every Nonprofit Should Have – And a Few You Might Not Have Considered
When you’re first starting a nonprofit, policies and procedures might not sound exciting. But they are one of the most important tools your board will ever adopt. Clear policies protect your nonprofit, your people, and your reputation, and they can save you from confusion, conflict, and even liability down the road.
I learned this firsthand serving on the board of an all-volunteer nonprofit that had been running for about 15 years before we finally put most of our policies in place. For a long time, everything was informal – decisions happened on the fly, communication varied depending on who was in charge, and important details lived only in someone’s inbox or memory.
When we finally developed a Communications Standards policy, it was a game changer. We clarified:
How the organization’s name and acronym should be spelled and capitalized.
Who would maintain the “official” statistics to be used in presentations, grant proposals, and media interviews.
Which version of the logo to use in different settings.
Who had access to passwords for online accounts.
Which board roles had authority to send out newsletters, press releases, or social media posts.
It might sound simple, but these decisions created consistency and protected our credibility.
We also implemented Conflict of Interest and Confidentiality policies, which safeguarded sensitive donor and volunteer information.
For another organization I worked with – a scholarship fund for women – we created a Gender Definition policy to clearly state how our board defined “women.” We wanted to make sure our board agreed on exactly who was included in the term “women.” The term could mean only those born female, those who identify as female, or those who had taken medical steps to change their gender, so we agreed on which definition we would use for our organization. Putting it in writing helped us avoid future confusion or disagreements. This policy was an “internal policy,” meaning we did not share it publicly, but it made sure we were all on the same page as to whom we served.
Beyond these, your nonprofit may want to consider:
Contracts & Expenses: Dollar limits on expenses requiring pre-approval, who may sign contracts, reimbursement procedures
Credit Card Use: Who may use a corporate card, what types of expenses are allowable, and spending limits
Financial Checks & Balances: Listing the different ways incoming and outgoing funds are signed off on or checked by different people in the organization to limit the opportunities or temptations for theft
Code of Conduct: Board, volunteer, and employee expectations
Whistleblower Policy: May be required; ensures concerns are handled fairly
Document Retention Policy: What to keep, what to shred, and how long records are stored
Non-Discrimination Policy: Protects both the organization and its people
Nepotism Policy: Avoids conflicts with family members on staff or the board
Strategic Plan: All on board, heading in a clear direction
Succession Plan: Ensures continuity – transition from founder to next generation of leaders, or building understudies for leadership positions
Diversity, Equity & Inclusion (DEI) Plan: Guides recruitment, culture, and programming
Risk Management Plan: Especially important if you have an office, run programs, or welcome the public
Safety Plan: Plan in place to handle in-office emergencies – fire, an irate visitor/employee, or other emergency situations
Policies & Procedures Manual (all in one place)
Policies and procedures may not feel exciting, but they are the invisible guardrails that keep your nonprofit safe, consistent, and trustworthy. Taking the time to establish them early makes everything else run smoother.
👉 Takeaway: Policies and procedures aren’t about creating red tape. They’re about clarity, consistency, and protecting the people and mission you care about.
Until next time, keep leading with passion and purpose. 💌 Have a question or want to share your thoughts? Email me at [email protected] — I’d love to hear from you.
