Good Governance practice for 501(c) (3) organizations.

"Governing boards of charitable organizations," says the Internal Revenue Service, "should comprise persons who are informed and active in overseeing the charity's operations and finances." Governing boards that ignore an organization's toleration of secrecy or neglect can expect that charitable assets will be used to advance inappropriate private interests. Consequently, a governing board's success will depend not only on appointing members who are knowledgeable and passionate about the organization's mission and programs but also on including individuals with expertise in critical areas involving accounting, finance, compensation, and ethics.

In its introduction to its online publication, Governance and Related Topics--501(c)(3) Organizations, the IRS says the following:

The Internal Revenue Service believes that a well-governed charity is more likely to obey the tax laws, safeguard charitable assets, and serve charitable interests than one with poor or lax governance. A charity that has clearly articulated purposes that describe its mission, a knowledgeable and committed governing body and management team, and sound management practices is more likely to operate effectively and consistent with tax law requirements. And although the tax law generally does not mandate particular management structures, operational policies, or administrative practices, it is important that each charity be thoughtful about the...