What makes governance “good”? A checklist for nonprofits
Abstract: “Good governance” is one of the hottest topics in the nonprofit world these days. Nonprofits have been strongly encouraged to adopt certain Sarbanes-Oxley (SOX) regulations, and the IRS has revised Form 990 to include several questions regarding governance policies. What’s more, the increasing power of charity watchdog groups means that nonprofits must try to put a responsible face forward to the public. This article offers a checklist of recommendations that a nonprofit’s board might follow, including forming an audit committee and regularly reviewing risk exposure. A sidebar discusses what constitutes “reasonable” executive compensation.