As a nonprofit brand, give donors the confidence and trust they deserve by constructing and continually reviewing these three policies:
1) Conflict of Interest Policy
This is perhaps the most important policy for any nonprofit organization and it should be regularly reviewed. Often businesses or donors are unaware that their personal interests are in conflict with the best interests of the non-profit. A goal for many not-for-profit organizations is to raise awareness while encouraging discussion and disclosure of conflicts that may exist.The conflict of interest policy of a nonprofit organization is born from 2 origins: great sense and Form 990. There are many questions to be asked concerning the conflict of interest policy of an organization. More than simply having one, which is a legal requirement, it’s great practice to develop your coverage with all these questions in your mind. Along with having the ability to provide answers to those queries, you can rest easy knowing you have developed a policy that will protect your nonprofit.
Legality aside, there are some advantages to having a conflict of interest policy. First, you will be given an insights just by producing your own conflict of interest policy. You may discover violations before a conflict arises. Policies like these signal to partners and donors that integrity is something that your business considers a top priority. Though it can feel like chore to put one in place, a well-written policy can benefit your nonprofit it ways you may not have considered.
2) Donor Policy
Donor constraints can make things complicated. It allows your nonprofit organization to standardize this procedure. A donor policy may also benefit your not-for-profit business, Setting a policy can reduce oversights and mistakes These errors are tricky until you go to make a draw which after the donation. That is the reason it’s important to develop a thorough checklist to guarantee a smooth landing.
Besides an overall improvement in contribution processing, it may assist with your donor connections. Not only does using a policy that is well-developed signal to your donors that your take their contribution seriously, it lets them know they aren’t being singled out. By the compex nature of nonprofit accounting, it’s never a simple equation such as donor gifts minus nonprofit spends. Between the giving and spending equation, there is an abundance of conversation, arrangement, and paperwork between these two occasions. Assure your donors that this is STANDARD practice and is normal for everybody. They will hate the paperwork but love the respect.
3) Spending Policy
Now that you have the reception of capital nicely standardized, it is time to manage their use. One of the most difficult policies balances two goals that compete with one another: maintaining the level of current spending while growing the endowment to support future spending.Creating a considerate and thoughful spending policy may create direct and indirect benefits for your not-for-profit. A spending policy provides a tool for you to present to current AND prospective boards. This guarantees consistency and displays to donors precisely where their gifts are going while fostering donor confidence. Afterall, once your donor fulfills their end of philanthropic giving, your nonprofit has the duty to fulfill your end of the mission. Without donor confidence in philanthropy, there’s really no future for social benefit organizations.