By Ruth Masterson, Exponent Philanthropy
I can’t count the number of times a member has called with a sticky situation—how to handle a conflict of interest, or a board member not pulling his or her weight—but, when I ask about what expectations or policies are written down, I learn that there’s nothing in place. That’s an awkward time for the board to decide what the foundation’s policy is! Having policies in writing is one of the best ways to avoid being tripped up by such problems.
To learn more from our members about which policies they find most useful, we ask about a number of policies and documents and share the results in our annual report. We’ve learned that foundations are most likely to report use of written conflict of interest statements (80%), investment policies (78%), grant guidelines (76%), and vision or mission statements (70%).You can put this data to use in your own foundation today. Start with the most common policy and work your way down. Starting with a conflict of interest statement, ask if your foundation has this policy, and, if not, if this policy would be helpful in a pinch. Not all foundations need to have all these policies—for example, not all foundations need a donor intent statement—and there are others that your foundation may benefit from that are not on this list. You only want to adopt those policies that are meaningful and relevant for your foundation.