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CHECKLIST: Nonprofit Management Annual Reminder Checklist
This checklist is intended to remind nonprofit Executive Directors, CEOs, CFOs, COOs, and other managers, officers, and Board / committee members to regularly evaluate, renew, and update documents, activities, policies, and practices to better meet the organization's changing needs. The document is organized by key fiscal, financial, governance, and operational areas, including Funding, Administration, Human Resources, Professional Services, Financial Reporting, Financial Policies & Procedures, and Governance.
Video Podcast: What Nonprofits Should Know about Spending Operating Reserves
Ben and Mike discuss why the spending side of operating reserves is often overlooked, the benefits of adding spending provisions to an operative reserve policy, the key elements to include in these spending provisions, how the smart use of operating reserves can be a point of pride for a nonprofit organization, and more.
Q&A #177 – Must audited financial statements be formally approved by the governing body?
Yes, a governing body of the organization must vote to accept (approve) or not accept (not approve) the final audit reports received from the auditors. This is not only a generally accepted best practice but also a compliance requirement because the audit reports and the auditing process will be considered incomplete unless the independent auditors receive formal approval notice from the governing body of the organization.
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TEMPLATE: Resolutions for First Meeting of Nonprofit Board [SUBSCRIBERS-ONLY]
This template provides a standard set of resolutions for a newly formed nonprofit organization convening its first Board of Directors meeting. This sample document includes language covering actions such as adoption of Bylaws and key policies, officer appointments, banking authorizations, authority to file the Form 1023 and other applicable tax exemption applications or registrations, and more.
VIDEO Q&A for Subscribers: July 2025
Ben and Mike answer questions from subscribers about what to do when a capital campaign falls short of its goal, whether a 501(c)(3) organization can have only one Board member, getting back into compliance with the organization's investment policy, and whether unpaid internships raise conflict of interest issues.
The Fundamentals of the Private Benefit Rule
501(c)(3) nonprofit organizations rightfully focus much of their attention on complying with laws involving conflicts of interest among Board members, officers, and management. However, the “private benefit rule” is often overlooked and reaches far beyond an organization’s insiders. A basic understanding of the private benefit rule can help you navigate potential issues in a wide variety of programs and activities.
Video Podcast: Making Document Retention and Destruction Policies Less Burdensome
Ben and Mike discuss document retention and destruction policies, the reasons why many common basic templates are very burdensome and lead to inconsistent implementation and other problems, the different approach we use in our policy template, considerations relating to electronic storage, and more.
Q&A #176 – Can a nonprofit appoint an interim Board Chair to replace a resigning chair?
An organization’s Bylaws and applicable state nonprofit corporation laws will determine whether a Board Chair can be appointed for less than a full term, but there is usually no restriction against appointing an “interim” Board Chair who serves on a temporary basis until a longer-term successor is chosen. However, it is important to be aware that interim directors and officers are subject to the same fiduciary duties and other responsibilities as other directors and officers.
VIDEO Q&A for Subscribers: June 2025
Ben and Mike answer questions from subscribers about preparing to serve on a nonprofit Board of Directors, the pros and cons of group exemptions, mitigating auditor concerns about pledges receivable, and whether the rationale for a Board member's dissenting vote should be included in Board meeting minutes.
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TEMPLATE: Document Retention and Destruction Policy [SUBSCRIBERS-ONLY]
This Document Retention and Destruction Policy template is intended to help your nonprofit organization ensure compliance with the Sarbanes-Oxley Act and other applicable record-keeping laws, and to avoid inadvertent destruction of important organizational records. Unlike many other document retention and destruction policies (sometimes called “record retention policies”) that specify difficult-to-track holding periods (3 years, 7 years, 10 years, etc.) for specific categories of documents, this template uses a more flexible approach that aims to minimize administrative and operational burdens while addressing key compliance issues.
Video Podcast: Using Funding Pipeline Reports to Navigate Financial Disruptions
Ben and Mike discuss the challenges of planning in a period of financial instability and how funding pipeline reports can help nonprofit organizations document real-time information affecting funding plans, provide a framework for assessing the reliability of future funding sources, fill in gaps not covered by financial reports, and more.
Q&A #175 – Can a nonprofit organization’s 501(c)(3) tax-exempt status be revoked by executive order?
It is well-established that a nonprofit organization’s tax-exempt status cannot be revoked by the mere issuance of an executive order. Revocation generally requires an individualized examination by the IRS with a notice of determination and opportunities for organizations to appeal both within the IRS and in federal courts, subject to certain specific exceptions (such as automatic revocation for failure to file Forms 990 for 3 consecutive years).
Adding Spending Provisions to an Operating Reserve Policy
Virtually all nonprofit organizations aspire to accumulate operating reserves to help bridge short-term disruptions and funding gaps and to provide working capital for the future. What most people do not think about is how these operating reserves could be used or spent when the need arises. Misunderstandings can be avoided by making sure your organization’s operating reserve policy has provisions for the future allowable use (spending) of operating reserves.
VIDEO Q&A for Subscribers: May 2025
Ben and Mike answer questions from subscribers about the role of legal counsel in leading updates to an organization’s employee handbook, the best time to start planning for the end of an office lease, transitioning from fiscal sponsorship to becoming an independent 501(c)(3) nonprofit organization, and whether it’s a good idea to promote a staff bookkeeper or accountant to controller, director of finance, or CFO.
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TEMPLATE: Whistleblower Policy [SUBSCRIBERS-ONLY]
This Whistleblower Policy template is intended to help your nonprofit organization establish a process for Board members, staff, and others to report potential violations internally in good faith without fear of retaliation. This sample document includes basic language addressing the mechanism for reporting and investigating whistleblower claims, the prohibition on retaliation, and other provisions to help ensure compliance with the Sarbanes-Oxley Act and demonstrate your organization’s commitment to transparency, accountability, and good governance.