Understanding Board Policies
Board policies complement a foundation’s bylaws or trust documents by shaping its structure and operations.
- Bylaws and Trust Documents: These are legally binding and rooted in state law.
- Policies: While also binding, they are easier to amend and provide flexibility for governance.
Written policies help boards fulfill legal duties and establish clear expectations for members and staff. The specific number and types of policies depend on the foundation’s size and needs. Boards can create policies on any topic requiring formal guidelines.
Common Policies Many Foundations Adopt
- Board Governance
- Board compensation
- Membership and meetings
- Conflict of Interest
- Operations
- Records retention
- Travel and expense reimbursement
- Disaster and emergency response
- Grantmaking
- Discretionary grants
- Grant guidelines
- Grant strategies
- Ethics and Accountability
- Whistle-blower policy
- Ethics policy
- Financial Management
- Investment policy
- Spending policy
- Personnel
- Professional development plan
- Personnel policies
Other Topics Often Documented
- Advocacy guidelines
- Board learning and succession plans
- CEO/executive director succession plan
- Donor intent
- Strategic or long-range planning
- Disaster preparation plan
Clear and well-documented policies provide a foundation for sound governance and operational consistency. To explore key policies your board should consider, check out our primer: Policymaking Made Clear: Eleven Foundation Policies Your Board Should Consider.
Disclaimer: While we pride ourselves on our advice, please realize Exponent Philanthropy is not a law or accounting firm. This information contained in this Q&A is being provided for informational purposes only and not as part of an attorney-client relationship. The information is not a substitute for expert legal, tax or other professional advice tailored to your specific circumstances, and may not be relied upon for the purposes of avoiding any penalties that may be imposed under the Internal Revenue Code. It is our advice that you seek independent counsel, for any tax, accounting or legal issues you may have, related to matters that are of a material concern to you or your organization.
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