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Does Your Nonprofit Have the Right Policies in Place?

August 9, 2026 by Jordan Jerkovich

Organizational policies—and the updates they require—can easily fall to the bottom of an overworked nonprofit’s to-do list. It’s the kind of paperwork no one ever feels like tackling. But when an unexpected leadership transition, challenging personnel matter, or board conflict arises, clear and current policies are essential.

Outdated or missing policies can expose your nonprofit to unnecessary financial, legal, and reputational risks.

Check out this helpful article from NonProfitPRO to learn which policies and documentation can help safeguard your organization. It even includes a comprehensive checklist to help you identify gaps and prioritize the policies your nonprofit needs most.

Remember: Your board policies can evolve as your organization grows, and you don’t need to tackle everything at once. Start with the most important policies and build from there.

Could Your Nonprofit Be Out of Compliance?

June 26, 2026 by Jordan Jerkovich

It happens more often than you might think.

Recently, a small nonprofit contacted Spokes with a question about its filings. After a quick compliance review, we discovered the organization had unintentionally lost its tax-exempt status. Like many nonprofits, they believed they had filed everything correctly and had no idea there was a problem.

Unfortunately, over the years we’ve seen several organizations find themselves in similar situations.

California nonprofits have numerous filing requirements each year. For many organizations, some of those required filings are surprisingly simple—even a one-page form or IRS e-Postcard. But missing just one required federal or state filing can have significant consequences.

While it’s often possible to restore an organization’s good standing, the process can be lengthy, involve additional paperwork and fees, and divert valuable staff and board time. A few minutes spent reviewing your compliance status now can help prevent much bigger headaches down the road.

CalNonprofits recently shared two excellent compliance resources:

  • Nonprofit Compliance Checklist – A practical guide to annual federal and California filing requirements, organized in an easy-to-follow checklist.
  • Tax Compliance Webinar Presentation – Slides from a recent webinar covering common filing requirements, deadlines, and compliance tips.

We encourage every nonprofit to take a few minutes to review these resources and make compliance part of its annual organizational checkup!

Perks for Board Members?

March 27, 2026 by Michael Simkins

Recently, one of our Spokes member organizations inquired about the legality of providing a “perk” to board members. In this particular instance, the perk would be free tuition to an educational program run by the nonprofit. I had some concerns about such a practice. With the help of ChatGPT, I did some research and my concerns were confirmed. Here’s how I responded:

Providing a tuition discount to board members whose children are enrolled in your program is not automatically prohibited, but it raises several important legal and governance concerns that should be carefully considered.

First, under California law, a director who receives a material financial benefit from the organization may be classified as an “interested person.” If multiple board members utilize the discount, this could risk exceeding the rule that no more than 49% of the board may be composed of interested persons.

Second, while this type of discount would not be considered compensation, it does represent a financial benefit tied to board service. The Internal Revenue Service generally prohibits private inurement and limits private benefit in 501(c)(3) organizations. A benefit available only to board members—rather than based on need, employment, or program criteria—may raise concerns in this area.

Third, offering such a benefit introduces ongoing conflict of interest considerations. Board members receiving the discount would have a personal financial interest in decisions related to tuition, enrollment, and program policies, requiring disclosure and recusal. This can complicate governance and affect public trust.

Finally, there is an equity consideration. A tuition discount would only benefit board members with age-eligible children, creating an uneven “perk” structure that may affect board culture and recruitment.

Best Practice Recommendation
Most nonprofits avoid providing financial benefits tied to board service. Instead, they maintain board roles as strictly voluntary and uncompensated. If tuition assistance is offered, it is typically structured based on objective criteria such as financial need or made broadly available to program participants, not linked to governance roles.

Conclusion
While the proposed policy may be legally permissible if carefully structured, it carries sufficient legal, ethical, and practical concerns that it is generally not recommended as a best practice.

Public Charities Can Advocate—What You Need to Know

January 9, 2026 by Jordan Jerkovich

Many nonprofits hesitate to engage in advocacy because the rules can feel unclear or intimidating, but advocacy is not only allowed, it’s often essential to advancing your mission. Check out this recent presentation, Public Charities Can Advocate!, developed by Alliance for Justice’s Bolder Advocacy program, and its accompanying resources.

These materials break down, in plain language, what 501(c)(3) nonprofits can and cannot do when it comes to lobbying, nonpartisan advocacy, voter engagement, and election-season activities.

Public Charities Can Advocate! Presentation

A Guide to Election-Related Activities for 501(c)(3) Organizations

A Guide to the IRS Lobbying Regulations for Advocacy Charities

Financial Clarity in Uncertain Times

October 29, 2025 by Jordan Jerkovich

In September, Spokes hosted its first Operations Officer Roundtable, spotlighting Financial Clarity in Uncertain Times. Attendees heard from Erin Hoffman of Collaboration Business Consulting, who shared practical tips for staying resilient—like diversifying income, tracking key numbers, and keeping your team and board aligned.

Access her handout here, and watch for details on our next Operations Officer Roundtable, happening January 2026.


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DISCLAIMER: Spokes offers informed advice and recommendations, not professional counsel. Blog content is current as of the date shown. Individual posts are not necessarily updated, so please confirm the accuracy of the information, especially of older posts.

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