8. Establish and Support a Policy on Reporting Suspected Misconduct or Malfeasance (Whistleblower Policy)

In order to protect the credibility of your organization, each organization needs policies and procedures that encourage individuals to come forward as soon as possible with credible information on illegal practices or violations of adopted policies. Employees and volunteers who identify misbehavior must feel safe to report it. Not only is this good practice, but the Sarbanes-Oxley Act requires all entities, including nonprofit organizations, to protect whistleblowers and levies criminal penalties for actions taken in retaliation against whistleblowers.

Resources:

The following publications and articles provide helpful insights on what it means to build a culture of accountability:

Independent Sector’s “Reporting of Financial, Auditing or Governance Improprieties” policy is a model for other organizations.

National Council of Nonprofit Associations, a network of state and regional associations of nonprofits, offers a sample whistleblower policy.

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