Given the recent spate of articles relating to non-profit
executives accused of inappropriate activity, GMCS is providing this three part
series on Association / Non-Profit Good Governance.
In this series, we will explore the basic polices of good
governance as noted on your organization’s tax returns. These policies create a foundation to ensure that
there are adequate policies in place to promote an environment of ethical
activity and good governance.
These important policies are listed on your firm’s 990’s under,
Part VI: Governance, Management and Disclosure: Section B. Policies. An explanation of these basic polices are
contained within the IRS 990 Instructions Document contained here… They are as follows:
·
A written whistle blower policy
·
A written conflict of interest policy
·
A document retention and destruction policy
A recent GMCS audit of (13) thirteen regional non-profit entities
indicated that only (6) six out of the (13) thirteen had all of the proper policies
in place as noted on their 990 documentation.
With roughly 46 percent of this small industry specific sample adhering
to the basic procedures and administrative policies of good governance, maybe
it’s time for your organization to review your non-profits or association’s
990’s and policies to confirm that there
are adequate polices in place to promote an environment of ethical activity and
good governance.
Whistleblower Policy:
The first important document that association &
non-profit leadership must ensure is in place is the “whistleblower policy.” “A whistleblower policy encourages staff and
volunteers to come forward with credible information on illegal practices or
violations of adopted policies of the organization, specifies that the
organization will protect the individual from retaliation, and identifies those
staff or board members or outside parties to whom such information can be
reported.
The following (3) posts will detail the importance of the “whistleblower
policy,” and why every association and non-profit entity should have one along
with links to sample polices.
Retaliation in the Workplace:
Retaliation includes any adverse action taken against an
employee for filing a complaint or supporting another employee’s complaint
under a variety of laws. The most common type of retaliation claim involves an
employee who alleges that she was first harassed or discriminated against and
later punished for making a complaint to her employer or a relevant federal
agency.
Read more here…
Retaliation charges on the rise: how to protect your company:
In 2013, the Equal Employment Opportunity Commission (EEOC)
investigated 93,727 charges of discrimination, which resulted in penalties
totaling $372.1 million. Retaliation claims accounted for 41 percent of all the
charges. The most frequent bases of claims across all statutes are related to
discharge and discipline. Therefore, employers have opportunities to reduce the
risk by thoroughly documenting and reviewing all practices before, during, and
after any adverse action toward an employee.
Read more here….
Whistleblower Protection Policies: Why Every Non-Profit and
Association Must Have One:
When Congress enacted the Sarbanes-Oxley Act, following the
scandalous behavior of corporate America, it included two provisions that also
apply to nonprofits. Federal law prohibits all corporations, including nonprofits,
from retaliating against employees who “blow the whistle” on their employer’s
accounting practices. Additionally, over 45 different states have enacted laws
to protect whistleblowers from retaliation at the workplace. Consequently,
having a good internal process for addressing complaints including a
whistleblower protection/anti-retaliation policy can help your organization
protect itself from the risk of violating state and federal laws that afford
protections to whistleblowers, and can help ensure that if there is a problem
it will be investigated and fixed.
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