Required Best Practices

Piper Trust requires nonprofits to adopt the following best practices prior to being considered for a grant.

Form 990

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.

CEO Compensation

The full board of the nonprofit must approve any change in the CEO’s compensation.

Travel Reimbursement

The nonprofit must have travel policies with clear guidelines on types of expenses that can be reimbursed and the documentation required for reimbursement.

Board Size

The nonprofit must have a minimum of three members on its governing board, and at least one-third of the members should be independent.

Whistleblower Policy

The nonprofit must establish policies and procedures that encourage individuals to come forward with credible information about illegal actions or violations of adopted policies.

More Information

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 trustees believe that public trust and nonprofit accountability are fundamental to their legal, ethical
and fiduciary responsibilities. Piper Trust requires grant recipients to follow these best practices:
Piper Trust’s Checklist of Required Best Practices