What are some good governance practices for nonprofits?
In general, the same governance practices that apply to for-profit corporations can apply usefully to nonprofits. The following aspirational standards may be useful as a diagnostic on board effectiveness. • Board size should be small enough to enable meaningful discussion and decisionmaking. • Board membership should include relevant expertise and be free from conflicts of interest. • Board meetings should be frequent and long enough to ensure adequate oversight. • Board members should receive regular, timely information about the organization and the opportunities and risks it faces as it fulfills its mission and follows its strategy. The Internal Revenue Service has incorporated governance into its Form 990 and its education on the nonprofit organization Life Cycle: More information is available on the IRS website. This guidance covers six basic topics: • Mission • Organizational documents • Governing body • Governance and management policies • Financial statements and Form 990 repor
