Principles and Practices

for Nonprofit Excellence

Human Resources

The ability of an organization to make effective use of the energy, time and talents of its employees and volunteers is essential to accomplish the organization’s mission. Nonprofit organizations should place a high priority on exercising fair and equitable practices that attract and retain qualified volunteers and employees. Nonprofits have an obligation to adhere to all applicable employment laws and to provide a safe and productive work environment. Each nonprofit organization should establish specific policies and practices that promote cooperation and open communication among employees, volunteers and other constituents so that they can effectively work together to advance the organization’s mission.

Employment Policies

1) Nonprofits must comply with all federal, state and local employment laws when hiring and employing personnel, including withholding and payment of payroll taxes. 

2) Nonprofits should employ skilled individuals who are suitable for the positions they occupy and are committed to the goals, values and objectives of the organization.

3) Nonprofits should strive toward employing individuals who reflect the diversity of their constituency.

4) Nonprofits should continually work to provide a safe and healthy work environment.

5) Nonprofit organizations should adopt a set of specific policies and procedures for managing employees and volunteers.

6) Nonprofits should establish a clear conflict of interest policy for employees that includes disclosure of relationships, nepotism and interested party transactions.

7) Nonprofits should adopt specific grievance procedures for personnel with protections for reports of violations of organizational policy or applicable laws. #

8) Nonprofits should have mechanisms, including succession plans, to handle transitions in leadership and other key positions. #

9) Nonprofits should conduct background checks on employees and volunteers, particularly if their positions involve working with children or vulnerable adults, performing financial duties or serving in other sensitive areas.

Training, Development and Retention

10) Nonprofit organizations should provide personnel with clear, current job descriptions and the resources they need to produce quality work.

11) Nonprofits should support the education and development of and opportunities for growth and advancement of personnel.

12) Nonprofit boards have an obligation to balance internal equity with market-based and livable compensation for all employees.

13) To the extent of their ability, nonprofits should provide personnel with adequate benefits and the opportunity to financially contribute to retirement plans.

14) Nonprofit organizations should be open to input from personnel regarding the organization’s activities and results on a continual basis.

15) Nonprofit personnel should receive performance evaluations on at least an annual basis.

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Principles and Practices

Click on the links below to jump to the different sections of The Principles and Practices for Nonprofit Excellence.

• Introduction
• The Principles
• Role in Society

• Governance

• Planning

• Transparency and Accountability

• Fundraising

• Financial Management

• Human Resources

• Civic Engagement and Public Policy

• Strategic Alliances
• Evaluation
• Advice for Users
• The Origins of the Principles and Practices

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Principles and Practices for Nonprofit Excellence