Nonprofit Accounting Basics

Decision Making Policy Example

ORG Decision-making Policy

To promote making good decisions, ORG adopts the following principles:

  • Decisions that affect the whole organization are not made unilaterally. ORG board and staff will strive to involve the right people in each circumstance.
  • Day-to-day operating decisions are within the purview of staff leaders following an established internal decision-making procedure that, for each decision, establishes clear accountability, authority, time and budget parameters, and an evaluation component.
  • Major decisions require a well-researched proposal that is vetted by an ad hoc group comprising members of senior staff, affected departmental leaders, and selected board members. This group will follow a set of criteria that determine the viability of the project based on its impact on current programs and mission relevance, finances, staff, facility, image, and legal considerations.
  • A precise threshold for what is considered a major decision is not specifically determined herein. This policy trusts that good communication between staff and board leaders will result in the appropriate procedure being implemented and criteria applied.

Decision making policy article

Sample decision making procedures

Criteria checklist for decision making