Board policies work in tandem with a foundation’s bylaws or trust document to create the foundation’s structure. Bylaws or the trust document are legally binding and based in state law; policies are also considered binding, but they are less likely to be backed by force of law and are easier to amend (e.g., usually by a simple majority vote rather than a super-majority vote).
Written policies will help your board meet its legal responsibilities and clarify expectations among board members and, when applicable, staff. Some foundations operate with many board policies; others, with only a few. The number and type of policies that your board creates and follows depends on the size and scope of your foundation and what you need to operate effectively. A board may choose to set a policy on anything that requires one, depending on the foundation’s needs.
Here are several standard policies that many foundations adopt:
- Board compensation
- Board membership and meetings
- Conflict of Interest
- Disaster and emergency response
- Discretionary grants
- Ethics
- Fundraiser attendance
- Investment
- Personnel
- Records retention
- Spending
- Travel and expense reimbursement
- Whistle-blower
In addition, boards often document other topics:
- Advocacy guidelines
- Board learning plan
- Board succession plan
- CEO/executive director/top administrator succession plan
- Disaster preparation plan
- Donor intent
- Grant guidelines
- Grant strategies
- Professional development plan
- Strategic or long-range plan
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