Nonprofit Accounting Basics

Governance & Policies

What is governance?

Derived from the Greek word, kebernon, governance relates to steering, controlling, and exercising authority. The board of a nonprofit is vested with a role to govern the organization. This authority comes with the expectation to lead the organization by:

  • respecting all the laws
  • abiding by strict ethical standards
  • remaining fully accountable for its actions

Good governance constitutes the core of responsible stewardship. Good governance leads the organization to earn the public’s trust.