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Have You Reviewed Your Policies Recently?

Posted by Meaden & Moore on Aug 28, 2014 11:08:48 AM

PoliciesIt is good policy to review your policies annually.  They more than likely won’t change each year but factors can change that would cause you to update the policies you have in place.  For example, the economy and investment performance or future goals of the organization may change the way you allocate your investments.  You may want to re-evaluate your capitalization policy.  As your organization grows, and the cost of items decreases, it may be more practical to expense new computers, for example.  Re-evaluating your capitalization policy to increase the threshold of capitalizing versus expensing a purchase could be considered.

As new standards are introduced, you may want to consider the effect on your endowment spending policy or conflict of interest policy.  As the IRS Form 990 changes, you may want to consider implementing some of the policies the 990 inquires about.  Included in the 2013 IRS Form 990, Part VI Governance, Management and Disclosure on page 6, Section B on Policies inquires about the conflict of interest, whistleblower, and document retention policies.  The gift acceptance policy is inquired about in the Schedule M of the IRS Form 990.   

Another reason to review your policies annually is to make sure you are following the policies that are in place.  Changes occur such as changes in leadership, staffing, funder requirements, guidance, to name a few, that could affect your adherence to specific policies you have in place.  If it’s documented and board approved, you better make sure you are following it. Below is a list of policies to consider.

Common Policies                                                   

  • Investment Policy
  • Conflict of Interest Policy
  • Endowment Spending Policy
  • Capitalization Policy

Often Overlooked Policies

  • Fraud Policy
  • Gift Acceptance Policy
  • Document Retention & Management Policy
  • Whistleblower Policy
  • Expense Reimbursement Policy
  • Fundraising Policy

Strong, current, relevant policies can lay the ground work for stronger organizations. If you would like to discuss this information further, please do not hesitate to contact Michelle Carano at or (330) 315-4420. 

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