Essential and Mission-Specific Policies for Nonprofits: A Guide for Environmental Organizations


Operating a nonprofit organization involves navigating a complex web of legal, ethical, and operational challenges. Establishing and maintaining comprehensive policies is essential for ensuring compliance, fostering transparency, and promoting effective governance. While certain policies are fundamental for all nonprofits, environmental nonprofits have unique considerations that warrant additional attention. In this post, we will explore some of the essential policies that every nonprofit should have, as well as several that are particularly important for environmental nonprofits. 

A binder of nonprofit board policies on a desk between the hands of a person reviewing it

Essential Policies for Nonprofits

  1. Conflict of Interest Policy A conflict of interest policy is crucial for maintaining the integrity and credibility of a nonprofit. It outlines how to identify, disclose, and manage conflicts of interest among board members, staff, and volunteers. This policy ensures that decisions are made in the best interest of the organization rather than for personal gain.
  2. Whistleblower Policy A whistleblower policy protects individuals who report unethical or illegal activities within the organization. It provides a clear process for reporting concerns and ensures that whistleblowers are protected from retaliation.
  3. Document Retention and Destruction Policy This policy establishes guidelines for the retention and proper disposal of the organization's documents and records. It ensures compliance with legal requirements and protects sensitive information.
  4. Financial Policies To ensure the organization's assets are protected, these policies  govern investments, asset use, purchasing, and internal controls.
  5. Compensation and Personnel Policies A compensation policy outlines how salaries and benefits are determined for employees and key executives. It helps ensure fairness, transparency, and compliance with legal standards. Personnel policies offer a roadmap for managing employer-employee relations.
  6. Fundraising Policy A comprehensive fundraising policy sets standards for ethical and transparent fundraising practices. It includes guidelines for donor relations, solicitation methods, and handling of donations.
  7. Privacy and Confidentiality A policy on confidentiality and privacy identifies what is confidential information, alerts board members and employees to the importance of protecting it, and specifies corrective action to be taken in the event of an unauthorized release.
  8. Communications Policy A communications policy outlines the protocols for internal and external communication, ensuring consistency, transparency, and alignment with the organization’s mission and values across all messaging platforms.
  9. AI Policy An AI policy establishes guidelines for the ethical use, development, and deployment of artificial intelligence technologies within the organization, ensuring confidentiality, transparency, accountability, and alignment with the organization's mission and values.

Mission-Specific Policies for Environmental Nonprofits

  1. Environmental Stewardship Policy As environmental nonprofits are dedicated to protecting and conserving natural resources, an environmental stewardship policy outlines the organization’s commitment to sustainable practices. This policy can include guidelines for reducing the organization’s carbon footprint, promoting recycling, and using eco-friendly products.
  2. Scientific Integrity Policy Many environmental nonprofits engage in research and advocacy based on scientific data. A scientific integrity policy ensures that the organization’s research is conducted ethically, transparently, and without undue influence. It also includes guidelines for peer review and the publication of research findings.
  3. Partnership and Collaboration Policy Environmental nonprofits often work with various stakeholders, including government agencies, other nonprofits, and private sector entities. A partnership and collaboration policy sets forth the criteria and processes for forming partnerships, ensuring that collaborations align with the organization’s mission and values.
  4. Volunteer Management Policy Given the critical role volunteers play in many environmental nonprofits, a volunteer management policy provides guidelines for recruiting, training, and managing volunteers. It ensures that volunteers are effectively integrated into the organization and that their contributions are recognized and valued.
  5. Advocacy and Lobbying Policy Environmental nonprofits frequently engage in advocacy and lobbying efforts to influence public policy. An advocacy and lobbying policy clarifies the legal parameters for these activities consistent with the organization's tax exempt status and provides guidelines for ensuring compliance with lobbying laws and regulations.

Why These Policies?

The necessity and desirability of these policies arise from a blend of legal requirements, IRS recommendations, and accepted best practices from nonprofit governance experts. Fundamentally, these policies ensure that nonprofits serve the public benefit for which they exist and give confidence to donors and funders that their resources are being properly managed for their intended purposes. Keep in mind that this list is not exclusive, and the needs of every organization are unique.

How Often Should These Policies Be Reviewed and Updated?

Regularly reviewing and updating your nonprofit’s policies is crucial to maintaining their effectiveness and compliance. Essential policies like conflict of interest, whistleblower, and compensation policies should undergo an annual review to align with current legal requirements and operational realities. Additionally, significant organizational changes, such as shifts in leadership or funding, regulatory updates, and incidents like confidentiality breaches, necessitate immediate policy reviews and adjustments. Including policy review in regular board meetings and staying updated with best practices from professional organizations ensures your policies remain robust and effective, helping your organization achieve its mission more effectively.

How Can Our Nonprofit Get Started?

Implementing and maintaining general and mission-specific policies significantly enhance the effectiveness, transparency, and accountability of nonprofit organizations. For environmental nonprofits, these policies ensure legal compliance and reinforce commitments to environmental stewardship and scientific integrity. To get started, valuable DIY resources include IRS guidance through Form 1023 and Form 990, templates and best practices from the National Council of Nonprofits, and educational resources from the Standards for Excellence Institute. 

Navigating policy development can be complex, and if your organization needs personalized assistance, Watershed Legal Counsel is here to help. We support environmental organizations in Maryland by providing tailored advice, drafting specific policies, and guiding them through implementation to ensure compliance with relevant laws and regulations. Contact Watershed Legal Counsel to learn more about our services or to schedule a consultation. We're committed to helping your organization thrive and positively impact the environment.

--Jennifer Wazenski

Watershed Legal Counsel is a law firm in Annapolis, Maryland. The firm advises nonprofit, for-profit and governmental enterprises and individuals in environmental and natural resources matters, and serves as outside general counsel for mission-driven environmental enterprises. Founder Jennifer Wazenski is a Maryland attorney who has practiced environmental and natural resources law since 1991.

Disclaimer: The information provided at this site is for general purposes only.  It is not, nor is it intended to be, legal advice.

© 2024 Watershed Legal Counsel. All rights reserved. Image generated by DALL-E3.

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