Standard 1: Oversight of Operations and Staff - Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
Community Organizing and Family Issues (COFI) does not meet this Standard because its board of directors does not:
- Have a voting member of the board who is assigned the responsibility of serving as the treasurer. In general, the board’s treasurer helps provide independent oversight of the organization’s finances.
A representative from the organization submitted the following response:
- “COFI’s Board of Trustees operates using the Policy Governance model of nonprofit Board governance. As such, the Board (which is relatively small) works as a ‘committee of the whole’ to set fiduciary policies and executive limitations, approves the annual budget, reviews quarterly financial reports, and meets annually with an outside Auditor who performs an annual audit of the finances of the organization. The Board delegates the job of drafting an annual budget to the Executive Director who presents it for approval annually and provides monitoring reports quarterly.”
Standard 4: Compensated Board Members - Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.
Community Organizing and Family Issues (COFI) does not meet this Standard because:
- TWO (2) member(s) out of the NINE (9) member board of directors (22%) is/are compensated either directly or indirectly.