IT Governance

How to Improve Governance in Non-Corporate Firms

Corporate governance is often neglected and overlooked, particularly the non-profit ones. According to the IRS, a well-governed non-corporate charity is more likely to abide by the tax laws and safeguard charitable assets in a better way than other organizations. In their article for Corporate Compliance Insights, Rodney Slater, Colin Jennings, and Ayako Hobbs talk about different ways to improve governance in non-corporate organizations.

Taking Responsibility

The board of directors in a non-profit organization should actively participate in organizational discussions. Moreover, they should make well-informed and researched decisions and, most importantly, own the consequences. It leads to a culture of ownership in the team, where the workforce finds itself directly attached to the organization’s project and collective growth. If people are aware of their duties, there is no need to micromanage, and the tasks are executed effortlessly.

Abide by Corporate Ethics

Every member of the board of directors should encourage and instill an environment of ethics and values. An organization should be considerate about law compliance and ethical conduct and make it a top priority. To incorporate corporate ethics, business owners should include a compliance officer in the C-suite. To make ethics an integral part of an organization right from the recruitment process, it should include ethics-oriented criteria in employee qualification standards.

Improve Skills and Awareness

An organization and its workforce should be aware of different rules and regulations of federal and state policies for non-profit organizations. It would also benefit the directors to channel the correct information and awareness among the workforce. Key training issues include director’s duties and liability, ethics, lobbying, and tax shelter transactions, to name a few.

Audit

Non-profit organizations with substantial assets or annual revenue need to be audited annually by an independent audit firm. An organization should constitute a group of independent directors that effectively set rules and procedures to resolve accounting and internal concerns.

Click on the link to read the article:

https://www.corporatecomplianceinsights.com/10-best-practices-nonprofit-corporate-governance/

Related Articles

Back to top button
X

We use cookies on our website

We use cookies to give you the best user experience. Please confirm, if you accept our tracking cookies. You can also decline the tracking, so you can continue to visit our website without any data sent to third party services.