How GetGoodGovernance (G3) for Nonprofits Can Assist You

GetGoodGovernance (G3) for Nonprofits offers a successful governance policy production and implementation process at a reasonable price, and currently has 4 Policy Packages which are easily and efficiently customizable, through a secure online portal, to meet the individual needs of small, mid-sized and large nonprofits.

The Law Office of Jonathan Ackerman, LLC has waded through the myriad of sample policy forms and relevant law, and drafted a set of policy forms that are inclusive. A streamlined process for the simple production of customizable policies has also been created, which provides the opportunity to produce these policies at a reasonably priced, flat fee.

Implementation could not be easier - a series of educational videos are provided to outline the character of the different policies and to describe certain provisions that could be removed or modified to meet the nonprofit's particular needs. In addition, nonprofits are given a series of powerpoint slides for 3 successive Board meetings to shepherd the Board through the analysis, development and approval process for each G3 Policy Package.

To find out which G3 Policy Package is right for your nonprofit, visit our G3 Policy Packages page.

Why do nonprofits need good governance?

While there is an interesting debate taking place regarding the increased scrutiny of nonprofit governance by a number of constituencies, it is undeniable that good nonprofit governance is best, and at its heart is the adoption of well thought-out, disciplined and effective policies that are individually customized for each nonprofit's unique situation.

A nonprofit's fiduciaries (or other individuals with potential liability) generally include its Board members, Officers, key employees and individuals that can exert substantial influence over the nonprofit. There are at least two areas of potential personal liability — federal tax liability (such, as excise taxes), and state law breaches of their fiduciary duties (such as, failing to: (i) meet the nonprofit's mission, (ii) properly be informed and oversee the nonprofit's operations, (iii) engage in active decision-making, (iv) comply with all applicable laws, and (v) properly handle a transaction between the nonprofit and a fiduciary, to name a few).

Now that you know why nonprofits need good governance, find out which G3 Policy Package is right for your nonprofit.

Good nonprofit governance maximizes the Governing Board's:

• protection from personal liability,
• ability to focus on and serve its exempt purposes, and
• efficiency and efficacy in overseeing a nonprofit's operations.

However, implementing good governance policies becomes complex quickly, requires a Board's attention and approval, and generates added cost.

Implementing good governance policies has, at a minimum, three positive effects:

• educates the nonprofit's fiduciaries on what proper oversight looks like,
• causes the nonprofit's fiduciaries to understand and consider their liabilities, legal duties and responsibilities, and
• identifies potential liability issues, before they become liability problems.

Now that you understand more about how good governance assists nonprofits, find out which G3 Policy Package is right for your nonprofit.

Here are 5 important constituencies that care about good nonprofit governance:

Congress - Though the nonprofit community has actively moved to self-regulation, since at least 1918, Congress has over the years altered the federal tax exemption qualification for certain nonprofits, and has, through the enactment of a series of excise taxes and penalties, affected the way in which nonprofits operate and report.

IRS - The IRS has become increasingly active in ensuring that nonprofits exercise good governance - at the time of granting of tax exemption, when they file the annual information return - Form 990, and at the time of audit. The IRS has also adopted its own set of good governance practices for nonprofits in order to improve tax compliance, to safeguard charitable assets and to assure that charitable interests are served.

States - State Attorneys General are becoming more active in regulating and overseeing charities for failing to comply with applicable laws, failing to exercise proper oversight and breaches of their fiduciary duties.

Donors (and their heirs) - more multi-count lawsuits are being brought by disgruntled donors and their heirs against the nonprofit's fiduciaries for a breach of their duties under state law, subjecting them to personal liability, including excess spending from endowed funds, excessive compensation and loans to key executives, conflicts of interest, and failing to keep adequate records, failing to adopt reasonable standards of investment and invasion and failing to exercise proper oversight.

Potential Donors - Donors have a right to expect that nonprofits: (i) comply with all laws, (ii) are transparent and accountable in their operations, (iii) have effective governance, which includes having policies in place to enable the fiduciaries to meet their duties, (iii) exercise strong financial oversight, and (iv) engage in responsible fundraising.

The Public Trust

Publicized abuses of nonprofit mismanagement and a lack of oversight erodes the single most important component of the vibrancy and continued viability of the entire nonprofit sector - the public trust.

Now that you know why nonprofits need good governance, find out which G3 Policy Package is right for your nonprofit.