1. Mind Map Created/Presented by Jamie L Williams, CB Owner/manager Lenore, Inc
2. MIND MAP OBJECTIVE:
   1. To clearly present the concepts of the topic under review in mind map format for ease of understanding, implementation, and procedure development
      1. To use as a study and reference guide
3. REL. JAN 2021
4. About nonprofit policies:
   1. GETTING A CLOSER LOOK: Review the process for preparing and developing nonprofit policies.
   2. What?
      1. Nonprofit policies are policies that outline the board of director requirements on organization staff. They may be in addition to existing accounting controls.
   3. Why?
      1. Nonprofit policies are prepared and developed to ensure compliance with laws and regulations governing the manner in which nonprofits should operate.
   4. How?
      1. The development of nonprofit policies is usually delegated to the board, however, we suggest making this a collaborative effort among all staff members.
      2. Ensure that nonprofit policies meet all assurance needs.
      3. Implemented nonprofit policies through accounting controls. Follow the steps of developing accounting controls. Nonprofit policies make up one of the four components in an accounting control system.
   5. Applications:
      1. Cash policy
         1. All cash and checks will be deposited on the same day as the date of receipt
      2. Fixed asset policy
         1. For donated assets:
            1. For donated assets, all donated assets must be held and used for a period of at least one-half their estimated remaining useful life. The exception would be assets of no use to operations.
            2. For donated asset collections, all collections with an appraised fair value exceeding a fixed dollar amount must be capitalized
         2. For all fixed assets:
            1. For all purchases and donations, any purchase or donation over a set amount that meets the description of a fixed asset will be submitted to the board on a capital budget request form
            2. For all fixed assets, any purchase or donation over a set amount that meets the description of a fixed asset will be classified and capitalized as a fixed asset
            3. For all fixed assets, any fixed asset that is transferred to a different department will be reported to accounting immediately
            4. For all fixed assets, any fixed asset over a set dollar amount will be reviewed and tested for impairment on a consistent yearly schedule
            5. For all fixed assets, after impairment review and testing, any fixed asset that appears to be beyond its useful life must be reported to accounting and to the executive director for depreciation and disposal approval
      3. Payables policy
         1. Approvals
            1. Invoices over a set dollar amount will be signed by a management
            2. Invoices over a set dollar amount will be signed by leadership
            3. Invoices below a set dollar amount will be held for five days for review and dispute resolution before it is submitted for payment
            4. For signers no longer authorized to sign checks, signers will be immediately removed from the approved signer bank list
         2. General policies
            1. Invoices will be required for all vendor payment requests (proforma invoices are acceptable)
            2. Petty cash will be used for expenses below a set dollar amount
            3. Petty cash will be used for expenses other than employee advances and traffic citations
         3. Reimbursements
            1. For expense reimbursements, all line items will be accompanied by a receipt
         4. Rushed requests
            1. For COD or rush payment requests, all requests over a set dollar amount will be authorized by management
      4. Payroll policy
         1. Staff will be held responsible for clocking in and out in the time management sytem
         2. Staff will be held responsible for submitting completed time sheets covering the entire pay period
         3. Staff will be paid against their completed time sheets
         4. Staff will be paid based on a posted schedule
         5. Staff will be compensated for all time worked
         6. Overtime will be approved by management 7 calendar days prior to its use
         7. Managers will review and approve all their active employee timesheets by 10a every Wednesday for the prior week
      5. Donation policy
         1. All donors will be provided a pre-numbered, sequential computerized receipt for their donation (cash or non-cash donations) with wording that "not all donations are tax exempt"
         2. All non-cash donations will be handled by management or leadership to determine their value, potential organizational use and reputation impact (in the case of donated securities)
         3. Any donation of land or buildings and any donation over a set dollar amount, will be accompanied with an expert appraisal certificate and inspector's report
      6. Investment policy
         1. All donated securities will be reported to the investment committee to evaluate risk and determine liquidity. If liquidity is decided, the security will be re-classified as available-for-sale and sold within five business days
         2. All donated endowment will be required to include a contractual clause to decrease the endowment balance by any investment losses
      7. 990 policy
         1. 990 Policy Approvals
            1. All policies will be reviewed by management and leadership, every quarter, for ease of operation flow, financial impact and impact on staff morale. Policies that meet all assurance requirements will be retained; all others will be discarded/revised
         2. 990 Policy General
            1. All policies will include: a set implementation date, related accounting control procedures, and an implementation waiting period. The implementation waiting period will allow enough time to inform staff and for training
            2. All copy of the preliminary Form 990 tax return and its attachments/schedules will be provided to the board one month prior to its submission to the IRS
            3. The board will be given two weeks to review and submit requests for revision before the final Form 990 is prepared and submitted to the IRS
         3. 990 Policy Recordkeeping
            1. A written whistleblower policy will be prominently posted and kept in a readily accessible organization-wide file
            2. All policies will be maintained in a readily accessible organization-wide file
            3. A written conflict of interest questionnaire is required for all members of the board and will be kept in the articles of incorporation file
            4. A written document retention and destruction policy will be maintained in the policy file
            5. What are an example of a document retention and destruction policy?
            6. The organization shall retain documents for as long as needed for its operations as determined by management and leadership and as required by law. The following table may be revised periodically. The revisions of which will be logged in the policy file:
            7. Want a copy of this file? Email me at general.inquiries@lenoreinc.com
            8. A written compensation policy for executive director/officers/key staff/joint venture agreements will be maintained in the policy file and evaluated and approved by the board
            9. A written lobbying budget and activities policy will be maintained in the policy file
         4. 990 Policy Changes
            1. Any policy changes will be logged/maintained in the policy file inform and train staff
            2. All potential policy changes will be discussed at monthly board meeting and recorded in board meeting notes
      8. Joint ventures policy
      9. Lobbying and political campaigns policy
      10. Tax filings policy
   6. Resources:
      1. Nonprofit Policies: Controlling The Reins For Present and Future Growth
      2. Nonprofit Policies: Inspiring Collaboration and Goal Accomplishment