Governance Policies For Nonprofits In Arizona

Establishing policies on governance for nonprofits in Arizona is a critical step in building a well-structured and compliant organization. Governance policies define the rules, processes, and ethical standards that govern the actions of the nonprofit’s board of directors, staff, and volunteers. Here’s how to develop governance policies for your organization in Arizona:

Key Governance Policies for Nonprofits

Identify first the important policies of your nonprofit. Here are the examples of common governance policies:

  • Bylaws
  • Conflict of interest policy
  • Code of ethics
  • Board roles and responsibilities
  • Financial management policies

State and Federal Requirements

Understand Arizona’s nonprofit rules and regulations. Compliance with federal standards is important for tax-exempt organizations. Ensure that your policies are consistent with these legal requirements.

Governance Committee

Form a governance committee or select a subcommittee of your board of directors to oversee the development of policy. People with appropriate skills will be helpful. They can be lawyers, accountants, and nonprofit leaders.

The Policies

Outline each policy to ensure clarity and detail. Policies should be thorough. These should cover relevant facts tailored to your nonprofit’s needs. Seek legal advice or templates to help with policy writing.


Make sure your nonprofit’s bylaws follow Arizona state law. Review and revise the outline of the organization’s structure, decision-making processes, and governance procedures.

Conflict of Interest Policy

Draft a conflict of interest policy outlining the processes for identifying, disclosing, and resolving conflicts of interest among stakeholders.

Code of Ethics

Write a code of ethics that defines the moral requirements, expected behaviors, and roles of volunteers, personnel, and members of the board.

Board Roles and Responsibilities

State the obligations, terms, and expectations for each board member. It should include their roles and responsibilities.

Financial Management Policies

Develop financial management guidelines that include:

  • Financial reporting
  • Investment strategies
  • Budgeting
  • Fundraising protocols

Review and Approval

Take the proposed policies to your board of directors for approval, review, and discussion. Amend as needed to address any issues or recommendations.

Adoption and Distribution

After the policies are finalized, legally adopt them and make sure that the appropriate stakeholders, employees, and board members are all aware of and able to access them.

Training and Compliance

Board members and employees should get training on the policies and their responsibilities. Keep an eye on and encourage compliance with the policies.

Regular Review and Updates

Policies for governance shouldn’t be set in stone. Legal requirements and organizational operations constantly evolve. It’s a must to plan regular assessments of the policies to test its relevance.


Make sure that stakeholders can readily access the policies by posting them on your company’s website or giving paper copies upon request.

Legal Consultation

Consider seeking legal counsel if you are unsure or have any queries. This is to make sure that it complies with all relevant laws and regulations.


Establishing governance guidelines for a nonprofit organization in Arizona is key to encouraging openness, responsibility, and moral behavior among your staff. Effectively formulated and executed policies serve to preserve the goodwill of your nonprofit organization and guarantee its sustained prosperity.