Earlier this year, the IRS released a Good Governance Practices Discussion Draft for charitable organizations.  Included in the draft are nine recommendations to help ensure that directors understand their roles and responsibilities and actively promote good governance practices:

1. Mission statement
2. Code of ethics and whistleblower policies
3. Due diligence (consistent with duty of care)
4. Duty of loyalty
5. Transparency
6. Fundraising policy
7. Financial audits
8. Compensation practices
9. Document retention policy

Also see IRS Publication 4221, Compliance Guide for 501(c)(3) Tax-Exempt Organizations