Attending The Nonprofit Partnership‘s KeyCon 2024 this year in Erie, PA, I was excited to share insights with nonprofit professionals on an essential topic: maintaining the health and compliance of our organizations. I delivered a session on “Keeping Your Nonprofit on the Road: The Five-Point Organizational Checkup,” and the experience left me with a few key takeaways that every nonprofit leader should consider.
First Stop: Governing Documents Matter More Than We Think
At KeyCon, I saw how many of us often overlook our foundational documents. Your Articles of Incorporation and Bylaws might be tucked away in a file, but they need regular review to keep up with regulatory changes. These documents contain your publicly stated tax-exempt purpose and the rules that govern your internal operations, so think of these documents as your roadmap. Without updated and relevant governance documents, your organization can easily drift off course.
The Financial Side: Don’t Skimp on Tax & Finance Compliance
It was clear that the tax and finance discussion struck a chord. Navigating nonprofit tax regulations can be overwhelming, but making sure that you have comprehensive financial policies in place and understand that your tax filings are more than just an accounting exercise is crucial. One takeaway: make sure your staff and board are trained on their roles in protecting your tax-exempt status here to prevent you from facing potentially costly “breakdowns” down the road.
Board Governance: Your Organization’s Steering Wheel
One of my favorite parts of the session was discussing board governance. The enthusiasm in the room showed just how vital a well-aligned, transparent, and accountable board is to a nonprofit’s success. The board is like your organization’s steering wheel, guiding you in the right direction and ensuring alignment with your mission. Ensuring that your board understands their fiduciary responsibilities, their adherence to conflict of interest and ethics policies, and how to best provide insight oversight makes all the difference in navigating your nonprofit’s journey.
Human Resources as the Engine of Your Mission
At KeyCon, I met several nonprofit leaders who recognize that their team is their organization’s engine. Having a clear understanding of the differences between employees and contractors, consistent hiring and firing practices, and compliant HR policies helps maintain a positive, legally sound workplace. Think of it like regular engine maintenance—HR compliance and transparency are critical to keeping your nonprofit running smoothly.
Risk Management: Don’t Wait for a “Flat Tire”
The conversation on risk management brought up some real “aha” moments. Risk management may not be glamorous, but it’s a critical component of sustainability. Nonprofit leaders, like drivers, need comprehensive insurance in place to protect themselves from the unexpected. At the same time, by proactively managing risks, through protecting confidential information and intellectual property and properly training staff and board, we can better safeguard our organizations and focus on what we do best.
Final Thought: Keep Your Nonprofit on Track with Regular Checkups
One of my biggest takeaways? Regular organizational checkups save you time, resources, and stress. Just like you wouldn’t wait for your car to break down, nonprofits shouldn’t wait for issues to arise before taking action. A five-point checkup—covering governance, finance, board oversight, HR, and risk—provides a proactive approach that helps keep everything on course.
If you’re a nonprofit leader, I can’t recommend this checkup process enough. It’s not just a maintenance routine; it’s a roadmap to ensure your nonprofit is always ready to meet its mission head-on.