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As a charitable organization, it is necessary to have certain policies and procedures in place in order to instill confidence and transparency in your organization, whether that is internally, with the public or an agency like the IRS. Some of the best ways to achieve that transparency is to follow some of the IRS best practices by creating policies which are located on page 6 of the Form 990. Although these are not required by the IRS, they are essential policies to have in place in order to protect board members, employees and the organization. The top four policies that we recommend are as follows:

  • Conflict of Interest Policy – Provides what to do when board members or the organization encounter certain transactions that could jeopardize independence.
  • Executive Compensation Policy – Helps the compensation process to be more transparent, protects board members from potential legal exposure, and avoids fines that may be associated with excessive compensation of executives.
  • Whistleblower Policy – Protects employees who report illegal, fraudulent or unethical activities from retaliation.
  • Record and Retention Policy – Provides guidelines to determine how long records are retained, how they are disposed of at the end of that term, and how the procedure may change when faced with an official investigation.

For sample policies and other useful information you can visit: or

You may also contact our office directly for any questions or concerns you may have.


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