Some people think of governance as a set of small laws or bureaucracy that can slow down a nonprofit organization. If you think of governance this way you are missing the big picture. Let’s say for example that you are speeding or failing to completely stop at a stop sign. These minor infractions will not cost you the ability to drive or lose your home. You could pay a small fine and move on. With nonprofit governance, it’s much different. 

When an organization fails to adhere to all governance rules they risk large fines and the potential of losing their exempt status. I believe a nonprofit can only be successful over time if they are proficient in all governance requirements. 

One time I spoke with a fairly large foundation who was fundraising in several States. Unfortunately, this foundation was only registered in one of the states; a strict violation of State governance. When the executive director was informed, he said it was too much work and did not want to comply thereby risking the foundations ability to fundraise in other States. A risk too costly to consider for any exempt organization.

We have developed a tool to help exempt organizations adhere to governance requirements. We call this the Nonprofit Assessment which is available on our website https://4nea.com/docs/ .

This easy assessment is a detailed checklist of what any exempt organization should follow to ensure proper governance is running smoothly. This assessment is for all levels of exempt organizations including start-ups and organizations who have served the community for 50 years. while the assessment may take up to two hours to complete, it can protect the organization from State or Federal fines and any threat to your exempt status which is worth the time and effort. After completing this assessment, your organization can seek our advisors for advice or tools that will fulfill governance requirements. Don’t open your organization to risk, take an easy assessment and follow governance requirements to lower all risks and sustain your community impact over time.