 |
|
Tools & Samples:
A. Know and ensure compliance with fiduciary duties.
B. Ensure that expenses are reasonable and in proportion to amounts spent on grants and technical assistance.
C1. Expect board members to serve the foundation without compensation, recognizing that reimbursement of reasonable expenses directly related to board service does not constitute compensation.
C2. Expect board members to serve the foundation without compensation, recognizing that board members who perform staff functions may be compensated as staff. Like all staff, these individuals should be reasonably compensated, document time spent, and have a job description, performance objectives and evaluations.
D. Confirm that proper due diligence is performed to ensure grantees’ fiscal and organizational viability and that grants are used for charitable purposes.
E. Ensure that the foundation has a written investment policy adequate for its size and complexity that includes investment objectives, asset allocation strategy, spending and/or payout policy, and rationale for selecting and evaluating investment managers/advisors.
F. Establish effective internal controls, systems of checks and balances, and formalized record keeping.
H. Conduct an internal review of foundation compliance with legal, regulatory and financial reporting requirements and provide a summary of the review to board members.
I. Obtain an external review of the organization’s finances (in accordance with asset size) by conducting a financial review, periodic audit or annual audit (for larger foundations).
J. Establish an audit committee to oversee accounting, financial reporting, compensation practices and the external audit of the foundation.
|
|
|
|
|
