Finance and Operations

When Does My Nonprofit Organization Need an Audit?

An annual audit is an examination of an organization’s financial systems and transactions at the end of a year by an independent, certified, professional auditor. The audit assesses whether or not financial statements have been prepared in conformity with Generally...

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What Financial Information Should My Nonprofit Provide to the Board?

Board members are responsible for understanding the financial condition of their organization in order to fulfill their fiduciary obligations. The IRS Life Cycle states that “Directors are stewards of a charity’s financial and other resources. The IRS encourages the...

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Does Our Nonprofit Organization Need a Conflict of Interest Policy?

Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to...

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Nonprofit Advocacy Works! Success in Protecting or Expanding Important Protections and Services

Nonprofit advocates achieved major successes in the recently ended 2018 General Assembly Session. The Legislature restored planned budget cuts to providers of critical services, and to important programs.  There was significant progress on numerous policy...

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What is a Conflict of Interest?

Nonprofits enjoy the public’s trust, and therefore must comply with a diverse array of legal and regulatory requirements. Organizations should conduct periodic reviews to address regulatory and fiduciary concerns. One of leadership’s fundamental responsibilities is to...

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Announcing the 2018 Nonprofit Salary and Benefits Report

  The 2018 Salary and Benefits Survey: A Study on Compensation and Benefits in Maryland’s Nonprofits, is now available exclusively to Maryland Nonprofits members! To access the report, login to the Member Portal and search for “2018 Salary and Benefits...

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I’m a Nonprofit Executive Director. Can My Board Hire or Fire an Employee or Tell Me Who to Hire or Fire?

The board is responsible for hiring, evaluating, and, if needed, firing the executive director (ED). Though not illegal, the board should not be involved in hiring, evaluating or firing any other employee. This is the responsibility of the executive director and, if...

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Can Nonprofit Executive Directors Serve on the Board?

Best practices suggest that it is not a good idea to have the Executive Director playing such a role within the organization, whether the position is a voting or non-voting position. Keep in mind the following precautions if the organization decides to place its...

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To Whom Does a Nonprofit Executive Director Report?

The executive director reports to the board, with the chief liaison being the chair of the board. This is the body that hires the ED, monitors and evaluates that person’s performance, and directs the search for a new chief executive if that becomes necessary. The ED...

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What is a Nonprofit Executive Director’s Job?

One way to look at an executive director’s responsibilities is through the same lens as that of the board. In the best of worlds, the two entities operate as a team to advance the organization and its purpose. In this context, BoardSource, a national nonprofit devoted...

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