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.