Nonprofit Management
Writing and Implementing Policies and Procedures for a Nonprofit
December 22, 2023
The short answer: Policies and procedures are the written guidelines that govern how a nonprofit runs day to day, and you should write, post, and put them into practice as early as you can. You don't need them to register with your state, but they keep your operations transparent, compliant, and consistent. Ten that most nonprofits need are financial management, conflict of interest, donor privacy, volunteer management, fundraising and grant compliance, human resources, board governance, program development and evaluation, risk management, and a whistleblower policy. Keeping them in one place where your team can access, update, and share them (for example, the policy module inside an all-in-one platform like Argenta) makes them far easier to maintain.
Frequently asked questions
What policies and procedures does a nonprofit need?
Most nonprofits should write and adopt ten core policies: financial management, conflict of interest, donor privacy, volunteer management, fundraising and grant compliance, human resources, board governance, program development and evaluation, risk management, and a whistleblower policy. Together they cover money, people, programs, and ethics. Start with the ones tied to your biggest risks (usually finances and conflict of interest) and build out from there.
Are policies and procedures required to start a nonprofit?
No. When you establish a nonprofit with your state, you generally don't have to submit policies and procedures as part of the paperwork. They matter for day to day operations instead, so it's a good idea to write, post, and implement them as soon as you can after you form the organization.
What is the difference between a policy and a procedure?
A policy is the rule or principle that says what your organization will do and why, like protecting donor information. A procedure is the step by step process for carrying that policy out in practice. You usually need both, because a policy without a procedure leaves your team guessing about how to follow it.
Why does a nonprofit need a conflict of interest policy?
A conflict of interest policy gives you a clear way to identify and manage situations where a board member, staff member, or volunteer has a personal stake that could cloud a decision. It protects the organization's integrity and reassures funders and the public that decisions are made for the mission, not for private gain. It is one of the most commonly expected governance policies.
What should a whistleblower policy include?
A whistleblower policy gives staff and volunteers a confidential way to report unethical or illegal activity without fear of retaliation. At a minimum it should name how to report a concern, who receives the report, how confidentiality is handled, and a clear statement that retaliation is prohibited. It signals that your nonprofit takes accountability seriously.
How do you keep nonprofit policies and procedures up to date?
Store them in one place your whole team can reach, review them on a set schedule (many organizations do this once a year), and update them whenever laws, programs, or staffing change. A policy and procedure management module, like the one in an all-in-one platform such as Argenta, makes it easier to write, track, modify, and share each document so nothing goes stale.
Policies and procedures are detailed guidelines that govern the internal operations of a nonprofit organization. When you're establishing a nonprofit with your state, you won't necessarily need to include policies and procedures, but they are essential for day-to-day operations. It's a good idea to write, post and implement them as soon as possible.
An Argenta Subscription includes a Policy and Procedure management module you can use to write and track policies and procedures making it easy to access, modify and share them with your team.
An Argenta Subscription includes a Policy and Procedure management module you can use to write and track policies and procedures making it easy to access, modify and share them with your team.
Here are 10 policies and procedures you should write and include to ensure robust governance, operational efficiency, and compliance with regulatory standards:
- Financial Management Policy: Guidelines for budgeting, accounting, audits, and financial reporting to maintain fiscal responsibility and transparency.
- Conflict of Interest Policy: Procedures to identify and manage potential conflicts of interest among board members, staff, and volunteers.
- Donor Privacy Policy: Protocols for handling and protecting donor information to maintain trust and comply with data protection laws.
- Volunteer Management Policy: Standards for recruiting, training, and supervising volunteers, ensuring a safe and productive environment.
- Fundraising and Grant Compliance Policy: Guidelines for ethical fundraising practices and adherence to grant requirements and restrictions.
- Human Resources Policy: Rules and procedures for hiring, onboarding, evaluating, and terminating staff, including anti-discrimination and harassment policies.
- Board Governance Policy: Defines the roles, responsibilities, and operations of the board of directors, including meeting procedures and decision-making processes.
- Program Development and Evaluation Policy: Procedures for creating, implementing, and assessing the effectiveness of the organization’s programs and services.
- Risk Management Policy: Identification, assessment, and mitigation strategies for operational, financial, legal, and reputational risks.
- Whistleblower Policy: Protocols that provide staff and volunteers with a confidential process for reporting unethical or illegal activities without fear of retaliation.
Including these policies and procedures is essential for establishing a well-organized, transparent, and legally compliant nonprofit organization. They not only guide daily operations but also provide a framework for ethical decision-making and long-term strategic planning.
What policies and procedures does a nonprofit need?
Most nonprofits should write and adopt ten core policies: financial management, conflict of interest, donor privacy, volunteer management, fundraising and grant compliance, human resources, board governance, program development and evaluation, risk management, and a whistleblower policy. Together they cover money, people, programs, and ethics. Start with the ones tied to your biggest risks (usually finances and conflict of interest) and build out from there.
Are policies and procedures required to start a nonprofit?
No. When you establish a nonprofit with your state, you generally don't have to submit policies and procedures as part of the paperwork. They matter for day to day operations instead, so it's a good idea to write, post, and implement them as soon as you can after you form the organization.
What is the difference between a policy and a procedure?
A policy is the rule or principle that says what your organization will do and why, like protecting donor information. A procedure is the step by step process for carrying that policy out in practice. You usually need both, because a policy without a procedure leaves your team guessing about how to follow it.
Why does a nonprofit need a conflict of interest policy?
A conflict of interest policy gives you a clear way to identify and manage situations where a board member, staff member, or volunteer has a personal stake that could cloud a decision. It protects the organization's integrity and reassures funders and the public that decisions are made for the mission, not for private gain. It is one of the most commonly expected governance policies.
What should a whistleblower policy include?
A whistleblower policy gives staff and volunteers a confidential way to report unethical or illegal activity without fear of retaliation. At a minimum it should name how to report a concern, who receives the report, how confidentiality is handled, and a clear statement that retaliation is prohibited. It signals that your nonprofit takes accountability seriously.
How do you keep nonprofit policies and procedures up to date?
Store them in one place your whole team can reach, review them on a set schedule (many organizations do this once a year), and update them whenever laws, programs, or staffing change. A policy and procedure management module, like the one in an all-in-one platform such as Argenta, makes it easier to write, track, modify, and share each document so nothing goes stale.