The nonprofit landscape in Iowa is facing a perfect storm of challenges and changes. Federal and state funding is increasingly uncertain. Proposed laws like the so-called “Big Beautiful Bill” could significantly shift how we operate. Diversity, Equity, and Inclusion (DEI)—a cornerstone for many organizations—is facing public scrutiny. And tax law changes, like adjustments to the standard deduction, are making charitable giving more complex and harder to predict.
So how should Iowa nonprofits respond?
Ensure the rest of 2025 is your organization’s strongest year yet by tackling these 25 actionable steps to stay compliant, mission-focused, and future-ready.
1. File and Review Your Form 990
Each year, tax-exempt organizations must file IRS Form 990—a public document that details your finances, governance, and operations. The IRS uses it to confirm your continued eligibility for tax-exempt status.
Here’s why it matters:
File late? You face a $20-per-day penalty.
File incorrectly? Still penalized.
Miss it for three years in a row? You lose your tax-exempt status and have to start over.
A Form 990 Review Policy helps prevent that. It should explain:
How and when the Board reviews the draft,
Who prepares and edits it,
And how it gets finalized and submitted.
2. Define and Revisit Your Mission
Your mission is your organization’s north star.
2025 To-Do: Revisit it. Is it clear? Is it still relevant? Does it align with your current work? A well-crafted mission builds unity and guides better decision-making.
3. Audit Your Articles of Incorporation
Think of this document as your nonprofit’s legal DNA. It outlines your purpose and structure—and both the IRS and the State of Iowa have specific requirements.
IRS Requirements:
Clear Purpose Statement tied to a recognized exempt category (charitable, educational, religious, scientific).
Dissolution Clause explaining how assets are distributed if the nonprofit shuts down.
Prohibition on Private Inurement (no personal benefit to insiders).
Restrictions on Political Activity (no campaigning, limited lobbying).
Iowa Requirements:
Unique Name and Registered Agent on file.
Purpose Statement aligned with IRS.
Member Provisions (declare whether you have voting members or not).
Dissolution Plan consistent with state and federal law.
Go Beyond the Basics:
List initial directors.
Include indemnification clauses.
Detail your amendment procedures.
2025 To-Do: Ensure you meet both IRS and Iowa standards—and go further where it makes sense.
4. Update Your Bylaws
If Articles of Incorporation are your constitution, Bylaws are your user manual. They spell out how your nonprofit actually functions day to day.
It’s about building a transparent, ethical culture. It’s also explicitly asked about on Form 990.
9. Revamp Your DEI Policy
While it is currently under attack, DEI is still foundational. A meaningful DEI policy:
Attracts diverse and talented staff,
Builds trust with your community,
Drives innovation through varied perspectives.
Ask yourself:
Are your values and goals publicly shared?
Are you transparent about hiring, pay, and promotions?
Are your partners aligned with your DEI commitments?
Are you tracking and reporting on progress?
10. Update Your Confidentiality Policy
Nonprofits operate in high-trust environments and a breach of that trust can be devastating.
A strong confidentiality policy should:
Define what’s confidential (donor data, internal discussions, personal info),
Explain who’s responsible,
Detail what happens if the policy is broken.
Confidentiality isn’t about hiding things—it’s about protecting people and building trust.
11. Curate a Specific Social Media Policy
Social media is powerful and potentially risky. Your organization needs a clear Social Media Policy to protect your mission, reputation, and people.
What it does:
Sets expectations for tone, content, and professionalism online.
Applies to staff, volunteers, board members, and contractors.
Helps prevent missteps that could damage your public image.
What to include:
Platform coverage – From Instagram to blogs and DMs.
Behavior guidelines – Respectful, inclusive language only.
Posting rules – Who has access, and how content is approved.
Confidentiality – No donor data, private info, or copyrighted material.
Personal use – Clarify how personal posts reflect on your org.
Keep this policy updated. Online platforms evolve quickly and so do reputational risks.
12. Examine Your Volunteer Policy
Volunteers are ambassadors of your mission. A Volunteer Policy ensures they’re supported, protected, and aligned.
What to include:
Purpose and mission connection.
Role descriptions, time expectations, and training requirements.
Code of conduct, confidentiality, and dress code.
Contact and emergency information.
Legal guidelines: liability, insurance, media releases.
Feedback mechanisms to recognize contributions and improve experience.
This policy helps everyone feel valued and keeps your organization legally and ethically sound.
13. Set a Solid Foundation With Your Employee Handbook
Your Employee Handbook is more than an HR formality—it’s your culture codified.
Key contents:
Your mission and values.
Policies on anti-discrimination, harassment, benefits, time off.
Remote work and tech usage.
Compliance standards (tax law, fundraising rules, grant expectations).
Performance review and training structure.
Must-haves:
A disclaimer that it’s not a contract.
An acknowledgment form.
At-will employment clause.
Language reserving the right to change policies.
A great handbook reduces confusion and boosts consistency, especially during growth or transition.
14. Ensure Clarity With Employee Agreements
Unlike handbooks, Employee Agreements are individual contracts. They clarify roles, expectations, and legal protections. They are especially critical for executive or specialized roles.
A solid agreement protects everyone now and during leadership changes.
15. Outline Your Compensation Policy
A Compensation Policy ensures fairness, transparency, and IRS compliance, especially for executive pay.
Why it matters:
Boosts staff morale and retention.
Reassures donors.
Prevents inconsistent or inflated pay practices.
What to include:
Who approves salaries.
How often compensation is reviewed.
How comparability data is used.
Rules for executive compensation and conflict-of-interest recusal.
Revision procedures.
This policy should align with your budget, values, and public accountability.
16. Protect Your Nonprofit With a Conflict of Interest Policy
A Conflict of Interest (COI) Policy isn’t just best practice—it’s IRS-required.
It prevents:
Insider deals
Reputational harm
Compliance violations
Your policy should cover:
Definitions of conflicts
Annual and ongoing disclosures
Recusal processes
Documentation procedures
Regular training for board and staff
Transparency builds trust—inside and out.
17. Craft an Investment Policy
If your organization has reserve funds or endowments, an Investment Policy helps you manage them responsibly.
Include:
How investments align with your mission.
Who makes decisions (board, committee, advisor).
Guidelines on risk tolerance, diversification, and returns.
When funds can be used.
How performance is monitored and disclosed.
Don’t have investment expertise? Bring in a professional and review your strategy annually.
18. Ensure Transparency With a Public Disclosure Policy
Nonprofits are legally required to share:
IRS Form 990 and 990-T (last 3 years)
IRS determination letter
Form 1023 (exemption application)
A Public Disclosure Policy outlines how you’ll comply and what else you’ll proactively share (like Bylaws or Compensation Policy).
Openness builds credibility and reassures funders, partners, and the public.
19. Use Independent Contractor Agreements
Working with freelancers or contractors? A written agreement protects everyone.
Must-haves:
Nature of the relationship (not an employee!)
Scope of work and deliverables
Compensation terms
Deadlines and termination terms
Confidentiality clauses
Liability and insurance provisions
Iowa has strict rules—misclassification can lead to tax, insurance, and even criminal consequences.
20. Solidify Your Financial Policies and Procedures
Financial health = mission success.
Your Finance Policy should cover:
Budget creation and approval
Spending limits and authorization
Cash handling protocols
Monthly/quarterly reporting
Audit guidelines
Investment and reserve use
Review this annually to adapt to growth and challenges.
21. Update Your Personnel Files
No one loves filing—but consistent Personnel File Policies protect your nonprofit.
Include:
Job descriptions, performance reviews, background checks, signed agreements
Records of promotions or disciplinary actions
Retain files for at least 4 years after employment ends
Do not include:
Medical records
Informal supervisor notes
Investigation reports
Keep access limited and organized for legal compliance and continuity.
22. Effectively Measure Your Impact
Data tells your story.
Develop metrics that:
Measure the effectiveness of your programs
Align with your mission
Are easy to track, analyze, and share
Use this data in annual reports, grant proposals, and donor updates to show what you’ve accomplished—and what’s next.
23. Invest in Capacity Building
Growth isn’t just external, it starts inside with staff, tech and more.
Capacity building means investing in:
Staff and volunteer training
Technology upgrades
Process improvements
It enhances your ability to deliver services, adapt to change, and deepen impact.
It’s not overhead—it’s infrastructure for mission success.
24. Update Job Descriptions
Clear roles = empowered leadership.
Roles to define:
Board Members – Strategic oversight and governance.
Officers – (President, VP, Treasurer, Secretary) handle operations and compliance.
Executive Director – Staff leadership, fundraising, DEI, and board collaboration.
Keep these updated in both your Bylaws and written descriptions—and get legal help where needed.
25. And Always… Celebrate Successes
Finally, don’t forget to celebrate. Mark progress. Honor your team. Share wins with donors and the community.
Whether it’s a major milestone or a mission-aligned moment, celebrating builds morale, momentum, and unity.
Final Thoughts
Iowa nonprofits are resilient. With thoughtful planning, clear policies, and mission-driven leadership, you can survive and thrive in the shifting landscape.
Start where you are. Pick a few priorities. And let 2025 be your most intentional year yet.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.png00Lexi Luneckashttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngLexi Luneckas2025-06-25 17:31:102025-06-25 17:45:1025 Things Iowa Nonprofits Should Do in 2025
Honoring Juneteenth: A Time to Reflect, Learn and Act
Gordon Fischer Law Firm would like to wish everyone a happy and reflective Juneteenth, or Freedom Day.
Understanding Juneteenth
June 19 marks the oldest nationally celebrated remembrance of the end of slavery in the United States. It’s the country’s second independence day. While it became a nationally recognized holiday in 2021, it was celebrated long before that.
The holiday marks the day in 1865 when roughly 2,000 Union soldiers arrived in Galveston, Texas, and under General Order No. 3, informed the more than 250,000 enslaved black people in the state of their freedom—two and a half years after the Emancipation Proclamation had been signed by President Abraham Lincoln.
Emancipation Celebration – Texas, 1990. Courtesy: Austin History Center
General Order No. 3 states:
“The people of Texas are informed that, in accordance with a proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of personal rights and rights of property between former masters and slaves, and the connection heretofore existing between them becomes that between employer and hired labor. The freedmen are advised to remain quietly at their present homes and work for wages. They are informed that they will not be allowed to collect at military posts and that they will not be supported in idleness either there or elsewhere.”
Here are a few ways Iowa nonprofits can engage meaningfully with Juneteenth:
Educate and Reflect: Encourage your team to learn about the history and meaning of Juneteenth. While reading a book or article is important, it’s not action. Consider hosting a reading group, guest speaker, or community conversation.
Support Black-led Organizations: Partner with or donate to local groups led by and for Black Iowans doing work that aligns with your mission.
Review Internal Practices: Use this moment to assess equity in your own hiring, board leadership, and service delivery models.
Juneteenth is not just a day off or a commemorative event, it’s an invitation to reflect and take aligned action. As a firm rooted in service and impact, GFLF stands with our clients in advancing justice through their work, every day of the year.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.png00Lexi Luneckashttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngLexi Luneckas2025-06-19 19:01:402025-06-19 19:01:40Honoring Juneteenth: A Time to Reflect, Learn and Act
Investing in the Future: What Iowa Nonprofits can Learn from Hometown Hero Caitlin Clark
After missing five games, Caitlin Clark is back in action with the Indiana Fever and my Iowa heart is happy! In typical Clark fashion, it was not a quiet return to the court, but a commanding reminder of who she is, even after working through an injury.
Her 32-point, 9-assist, and 8-rebound showing on Saturday reminded all of us in Iowa (and across the country) of the power of resilience. Iowa nonprofits—and particularly their boards of directors and officers—should approach financial stewardship with the same mindset. One crucial tool in doing so is a strong, clearly articulated Investment Policy.
Planning Before the Pressure
Just like Clark didn’t wait until tip-off to prepare for her return, your nonprofit shouldn’t wait until a financial crisis to get serious about investment oversight. Clark’s head coach, Stephanie White, also emphasized the importance of taking a “long-game approach” to address the injury to prevent lingering issues throughout the season.
Nonprofit officers and directors hold a fiduciary responsibility to steward assets wisely. Part of fulfilling that duty means knowing how exactly your nonprofit’s funds are invested. That’s where your Investment Policy comes in.
Think of it as your organization’s recovery and resilience strategy: it defines who is accountable for investment decisions, offers guidelines to grow and protect assets, and ensures you have access to liquidity when it’s needed most.
The C.L.A.R.K. Principles
Here are key elements of a nonprofit Investment Policy. Each one echoes the same principles Clark demonstrated in her return, aka, the C.L.A.R.K. Principles of Nonprofits:
Clarity in Roles = Everyone Knows the Play
Who makes the decisions? The Investment Policy should clearly authorize certain staff to make day-to-day investment choices, while preserving board oversight. Like a coach assigning positions, this clarity helps avoid confusion when quick action is needed.
Liquidity Matters = Expecting the Full Court Press
A great team knows how to respond under pressure. Likewise, your organization should always be ready to access cash when needed. Your Investment Policy should address liquidity—ensuring that funds are available for operational needs, emergencies, or strategic opportunities without disrupting long-term investments.
Alignment with Mission = Playing the Right Game
Every decision should serve a purpose. Your investments should support your nonprofit’s mission and values. The Investment Policy should align financial goals with your organization’s purpose, outlining strategies that reflect your risk tolerance and ethical considerations.
Risk and Return = Balanced Play
Clark doesn’t win by scoring alone—she balances offense with solid defense. Similarly, your Investment Policy should carefully weigh risk against potential return. Striking the right balance through diversification, asset allocation, and loss prevention strategies helps protect your nonprofit’s assets while still pursuing meaningful growth.
Knowledgeable Support = Build a Strong Bench
If you work with a financial advisor or investment manager, the Policy should outline their role and responsibilities. This ensures everyone’s playing from the same page and upholding fiduciary standards.
Caution over Convenience
The IRS Form 990 doesn’t require an Investment Policy, but it makes clear that investment oversight is essential. Without a defined policy, your organization risks falling behind when it matters most.
Clark’s comeback wasn’t just about her personal grit, it was about preparation, guidance, and knowing her role in the bigger picture. Clark and the Fever staff knew it would disappoint fans to miss multiple games, but with eyes on a playoff run, they knew they had to invest in the team’s future success.
Your nonprofit deserves the same foundation: a forward-looking plan that helps you weather challenges and keep driving toward your mission.
Whether your nonprofit is bouncing back from a tough year or simply planning for a stronger future, a well-crafted Investment Policy is a cornerstone of organizational health. It turns uncertainty into strategy and risk into opportunity.
At Gordon Fischer Law Firm, we help Iowa nonprofits craft Investment Policies that stand up to scrutiny and support your long-term mission!
Email Me!
Questions about Investment Policies? Email me now!
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.png00Lexi Luneckashttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngLexi Luneckas2025-06-17 15:36:192025-06-17 15:36:19Investing in the Future: What Iowa Nonprofits can Learn from Hometown Hero Caitlin Clark
25 Things Iowa Nonprofits Should Do in 2025
NonprofitsJune 25, 2025
25 Things Iowa Nonprofits Should Do in 2025
The nonprofit landscape in Iowa is facing a perfect storm of challenges and changes. Federal and state funding is increasingly uncertain. Proposed laws like the so-called “Big Beautiful Bill” could significantly shift how we operate. Diversity, Equity, and Inclusion (DEI)—a cornerstone for many organizations—is facing public scrutiny. And tax law changes, like adjustments to the standard deduction, are making charitable giving more complex and harder to predict.
So how should Iowa nonprofits respond?
Ensure the rest of 2025 is your organization’s strongest year yet by tackling these 25 actionable steps to stay compliant, mission-focused, and future-ready.
1. File and Review Your Form 990
Each year, tax-exempt organizations must file IRS Form 990—a public document that details your finances, governance, and operations. The IRS uses it to confirm your continued eligibility for tax-exempt status.
Here’s why it matters:
A Form 990 Review Policy helps prevent that. It should explain:
2. Define and Revisit Your Mission
Your mission is your organization’s north star.
2025 To-Do: Revisit it. Is it clear? Is it still relevant? Does it align with your current work? A well-crafted mission builds unity and guides better decision-making.
3. Audit Your Articles of Incorporation
Think of this document as your nonprofit’s legal DNA. It outlines your purpose and structure—and both the IRS and the State of Iowa have specific requirements.
IRS Requirements:
Iowa Requirements:
Go Beyond the Basics:
2025 To-Do: Ensure you meet both IRS and Iowa standards—and go further where it makes sense.
4. Update Your Bylaws
If Articles of Incorporation are your constitution, Bylaws are your user manual. They spell out how your nonprofit actually functions day to day.
Make sure your Bylaws address:
2025 Best Practice Policies:
These policies are specifically referenced in Form 990. Don’t skip them.
Final tips:
5. Enforce a Document Retention Policy
This often-overlooked policy is essential for legal compliance and good governance. It outlines:
It should also apply to digital files, social media, and even emails.
Tip: Keep it simple and usable. A policy no one understands—or follows—isn’t helpful.
6. Reevaluate Fundraising Practices
Fundraising is a lifeline—and also a compliance concern. The IRS scrutinizes how nonprofits raise money in Form 990. A fundraising policy ensures:
7. Adopt or Refresh Your Gift Acceptance Policy
You’ve heard the phrase: “Don’t look a gift horse in the mouth.” In the nonprofit world? You absolutely should.
Imagine your favorite donor shows up with a racehorse—healthy, fast, and valuable. Do you accept it on the spot?
Of course not. You’d ask:
A strong Gift Acceptance Policy will:
Pro tip: Post it online to set expectations with donors upfront.
8. Adapt or Update Your Whistleblower Policy
If wrongdoing is happening inside your organization, you want to know and your team needs to feel safe speaking up.
A whistleblower policy should:
It’s about building a transparent, ethical culture. It’s also explicitly asked about on Form 990.
9. Revamp Your DEI Policy
While it is currently under attack, DEI is still foundational. A meaningful DEI policy:
Ask yourself:
10. Update Your Confidentiality Policy
Nonprofits operate in high-trust environments and a breach of that trust can be devastating.
A strong confidentiality policy should:
Confidentiality isn’t about hiding things—it’s about protecting people and building trust.
11. Curate a Specific Social Media Policy
Social media is powerful and potentially risky. Your organization needs a clear Social Media Policy to protect your mission, reputation, and people.
What it does:
What to include:
Keep this policy updated. Online platforms evolve quickly and so do reputational risks.
12. Examine Your Volunteer Policy
Volunteers are ambassadors of your mission. A Volunteer Policy ensures they’re supported, protected, and aligned.
What to include:
This policy helps everyone feel valued and keeps your organization legally and ethically sound.
13. Set a Solid Foundation With Your Employee Handbook
Your Employee Handbook is more than an HR formality—it’s your culture codified.
Key contents:
Must-haves:
A great handbook reduces confusion and boosts consistency, especially during growth or transition.
14. Ensure Clarity With Employee Agreements
Unlike handbooks, Employee Agreements are individual contracts. They clarify roles, expectations, and legal protections. They are especially critical for executive or specialized roles.
Include:
A solid agreement protects everyone now and during leadership changes.
15. Outline Your Compensation Policy
A Compensation Policy ensures fairness, transparency, and IRS compliance, especially for executive pay.
Why it matters:
What to include:
This policy should align with your budget, values, and public accountability.
16. Protect Your Nonprofit With a Conflict of Interest Policy
A Conflict of Interest (COI) Policy isn’t just best practice—it’s IRS-required.
It prevents:
Your policy should cover:
Transparency builds trust—inside and out.
17. Craft an Investment Policy
If your organization has reserve funds or endowments, an Investment Policy helps you manage them responsibly.
Include:
Don’t have investment expertise? Bring in a professional and review your strategy annually.
18. Ensure Transparency With a Public Disclosure Policy
Nonprofits are legally required to share:
A Public Disclosure Policy outlines how you’ll comply and what else you’ll proactively share (like Bylaws or Compensation Policy).
Openness builds credibility and reassures funders, partners, and the public.
19. Use Independent Contractor Agreements
Working with freelancers or contractors? A written agreement protects everyone.
Must-haves:
Iowa has strict rules—misclassification can lead to tax, insurance, and even criminal consequences.
20. Solidify Your Financial Policies and Procedures
Financial health = mission success.
Your Finance Policy should cover:
Review this annually to adapt to growth and challenges.
21. Update Your Personnel Files
No one loves filing—but consistent Personnel File Policies protect your nonprofit.
Include:
Do not include:
Keep access limited and organized for legal compliance and continuity.
22. Effectively Measure Your Impact
Data tells your story.
Develop metrics that:
Use this data in annual reports, grant proposals, and donor updates to show what you’ve accomplished—and what’s next.
23. Invest in Capacity Building
Growth isn’t just external, it starts inside with staff, tech and more.
Capacity building means investing in:
It enhances your ability to deliver services, adapt to change, and deepen impact.
It’s not overhead—it’s infrastructure for mission success.
24. Update Job Descriptions
Clear roles = empowered leadership.
Roles to define:
Keep these updated in both your Bylaws and written descriptions—and get legal help where needed.
25. And Always… Celebrate Successes
Finally, don’t forget to celebrate. Mark progress. Honor your team. Share wins with donors and the community.
Whether it’s a major milestone or a mission-aligned moment, celebrating builds morale, momentum, and unity.
Final Thoughts
Iowa nonprofits are resilient. With thoughtful planning, clear policies, and mission-driven leadership, you can survive and thrive in the shifting landscape.
Start where you are. Pick a few priorities. And let 2025 be your most intentional year yet.
Email Me!
My email is:
gordon@gordonfischerlawfirm.com
####
Honoring Juneteenth: A Time to Reflect, Learn and Act
NonprofitsJune 19, 2025
Honoring Juneteenth: A Time to Reflect, Learn and Act
Gordon Fischer Law Firm would like to wish everyone a happy and reflective Juneteenth, or Freedom Day.
Understanding Juneteenth
June 19 marks the oldest nationally celebrated remembrance of the end of slavery in the United States. It’s the country’s second independence day. While it became a nationally recognized holiday in 2021, it was celebrated long before that.
The holiday marks the day in 1865 when roughly 2,000 Union soldiers arrived in Galveston, Texas, and under General Order No. 3, informed the more than 250,000 enslaved black people in the state of their freedom—two and a half years after the Emancipation Proclamation had been signed by President Abraham Lincoln.
Emancipation Celebration – Texas, 1990. Courtesy: Austin History Center
General Order No. 3 states:
“The people of Texas are informed that, in accordance with a proclamation from the Executive of the United States, all slaves are free. This involves an absolute equality of personal rights and rights of property between former masters and slaves, and the connection heretofore existing between them becomes that between employer and hired labor. The freedmen are advised to remain quietly at their present homes and work for wages. They are informed that they will not be allowed to collect at military posts and that they will not be supported in idleness either there or elsewhere.”
Here are a few ways Iowa nonprofits can engage meaningfully with Juneteenth:
Juneteenth is not just a day off or a commemorative event, it’s an invitation to reflect and take aligned action. As a firm rooted in service and impact, GFLF stands with our clients in advancing justice through their work, every day of the year.
Happy Juneteenth.
Email Me!
My email is:
gordon@gordonfischerlawfirm.com
####
Investing in the Future: What Iowa Nonprofits can Learn from Hometown Hero Caitlin Clark
NonprofitsJune 17, 2025
Investing in the Future: What Iowa Nonprofits can Learn from Hometown Hero Caitlin Clark
After missing five games, Caitlin Clark is back in action with the Indiana Fever and my Iowa heart is happy! In typical Clark fashion, it was not a quiet return to the court, but a commanding reminder of who she is, even after working through an injury.
Her 32-point, 9-assist, and 8-rebound showing on Saturday reminded all of us in Iowa (and across the country) of the power of resilience. Iowa nonprofits—and particularly their boards of directors and officers—should approach financial stewardship with the same mindset. One crucial tool in doing so is a strong, clearly articulated Investment Policy.
Planning Before the Pressure
Just like Clark didn’t wait until tip-off to prepare for her return, your nonprofit shouldn’t wait until a financial crisis to get serious about investment oversight. Clark’s head coach, Stephanie White, also emphasized the importance of taking a “long-game approach” to address the injury to prevent lingering issues throughout the season.
Nonprofit officers and directors hold a fiduciary responsibility to steward assets wisely. Part of fulfilling that duty means knowing how exactly your nonprofit’s funds are invested. That’s where your Investment Policy comes in.
Think of it as your organization’s recovery and resilience strategy: it defines who is accountable for investment decisions, offers guidelines to grow and protect assets, and ensures you have access to liquidity when it’s needed most.
The C.L.A.R.K. Principles
Here are key elements of a nonprofit Investment Policy. Each one echoes the same principles Clark demonstrated in her return, aka, the C.L.A.R.K. Principles of Nonprofits:
Clarity in Roles = Everyone Knows the Play
Who makes the decisions? The Investment Policy should clearly authorize certain staff to make day-to-day investment choices, while preserving board oversight. Like a coach assigning positions, this clarity helps avoid confusion when quick action is needed.
Liquidity Matters = Expecting the Full Court Press
A great team knows how to respond under pressure. Likewise, your organization should always be ready to access cash when needed. Your Investment Policy should address liquidity—ensuring that funds are available for operational needs, emergencies, or strategic opportunities without disrupting long-term investments.
Alignment with Mission = Playing the Right Game
Every decision should serve a purpose. Your investments should support your nonprofit’s mission and values. The Investment Policy should align financial goals with your organization’s purpose, outlining strategies that reflect your risk tolerance and ethical considerations.
Risk and Return = Balanced Play
Clark doesn’t win by scoring alone—she balances offense with solid defense. Similarly, your Investment Policy should carefully weigh risk against potential return. Striking the right balance through diversification, asset allocation, and loss prevention strategies helps protect your nonprofit’s assets while still pursuing meaningful growth.
Knowledgeable Support = Build a Strong Bench
If you work with a financial advisor or investment manager, the Policy should outline their role and responsibilities. This ensures everyone’s playing from the same page and upholding fiduciary standards.
Caution over Convenience
The IRS Form 990 doesn’t require an Investment Policy, but it makes clear that investment oversight is essential. Without a defined policy, your organization risks falling behind when it matters most.
Clark’s comeback wasn’t just about her personal grit, it was about preparation, guidance, and knowing her role in the bigger picture. Clark and the Fever staff knew it would disappoint fans to miss multiple games, but with eyes on a playoff run, they knew they had to invest in the team’s future success.
Your nonprofit deserves the same foundation: a forward-looking plan that helps you weather challenges and keep driving toward your mission.
Whether your nonprofit is bouncing back from a tough year or simply planning for a stronger future, a well-crafted Investment Policy is a cornerstone of organizational health. It turns uncertainty into strategy and risk into opportunity.
At Gordon Fischer Law Firm, we help Iowa nonprofits craft Investment Policies that stand up to scrutiny and support your long-term mission!
Email Me!
Questions about Investment Policies? Email me now!
My email is:
gordon@gordonfischerlawfirm.com
####