Set forth below is a 20-question test to assess your commitment to corporate governance best practices and your effectiveness as a director of a nonprofit organization. Answer “Yes” or “No” for each.
1. I can accurately recite or describe the charitable mission of the organization.
2. I attend at least 80% of all board meetings.
3. I always review and offer feedback, as appropriate, on board meeting minutes.
4. I know what category of tax-exempt status for which the organization is qualified.
5. I have reviewed the organization’s Articles of Incorporation and Bylaws within the last 18 months.
6. I know that the organization has a D&O insurance policy in place and have a basic idea of what that coverage provides me.
7. I know which version of IRS Form 990 the organization is required to file.
8. I reviewed the most recent Form 990 filed by the organization.
9. I know the organization has a conflict of interest policy in place and I generally understand its contents.
10. I understand what documentation we are legally required under the Internal Revenue Code to make publicly available.
11. Our board conducts meetings in compliance with its organizational documents.
12. Our organization has a social media policy.
13. Our organization has a gift acceptance policy that is reviewed at least every two years (for 501(c)(3) organizations).
14. I am aware of state charitable solicitation laws that apply to our organizations and am confident we are in compliance with such laws.
15. I know who the registered agent is for our organization.
16. I always ask questions at board meetings when I do not understand something being discussed or voted on.
17. When dealing with matters of compensation or significant expenditures, our board always conducts due diligence to confirm that such payments are reasonable and at fair market rates.
18. Our organization has policies and procedures in place to monitor compliance with the material contracts and agreements to which the organization is a party.
19. Our organization holds orientation sessions periodically to educate new officers and directors about the organization and duties and expectations for officers and directors.
20. Our organization has financial policies and procedures in place to minimize the risk of fraud and embezzlement.
HOW DID YOU DO?
17-20 “Yes” answers Congratulations, you are a pro! Keep up the great work.
12-16 “Yes” answers Not bad, there is room for improvement, but you are on the right track.
11 or fewer “Yes” answers You and your organization need help in a big way.