Required Best Practices
Piper Trust requires nonprofits to adopt the following best practices prior to being considered for a grant.
The board, or audit committee, must review the nonprofit’s Form 990 tax return each year before submission.
Financial Statement Requirements
A nonprofit with annual revenue between $250,000 and $1 million must have an independent CPA issue a review report on their financial statements.
A nonprofit with $1 million or more in annual revenue must have an independent audit and should establish an audit committee with financially literate membership.
Conflict of Interest
The nonprofit must adopt a strict conflict of interest statement that the staff and board annually review and sign.
The full board of the nonprofit must approve any change in the CEO’s compensation.
The nonprofit must have travel policies with clear guidelines on types of expenses that can be reimbursed and the documentation required for reimbursement.
The nonprofit must have a minimum of three members on its governing board, and at least one-third of the members should be independent.
The nonprofit must establish policies and procedures that encourage individuals to come forward with credible information about illegal actions or violations of adopted policies.
View Independent Sector’s 33 principles for strong financial oversight, legal compliance, effective governance, and more in Principles for Good Governance and Ethical Practice.
Find specific information and examples of policies on Independent Sector’s website: www.independentsector.org
Piper Trust’s Checklist of Required Best Practices