Drawing from 10 years’ worth of experience, Andrea Dono, Executive Director of Harrisonburg Downtown Renaissance, passes on lessons learned on key administrative, financial, and governance practices that nonprofits should regularly review or implement.
When I became the executive director at Harrisonburg Downtown Renaissance (HDR), it took several years for me to recognize that we were lacking crucial policies and that certain actions needed to be addressed annually. I often found myself wishing for a checklist to manage the “organizational infrastructure.” For those who might find such a resource beneficial, I have compiled this Sustainable Organizations Listicle. Although it is not an all-inclusive list and does not reflect the views of agencies like the IRS or Department of Labor, it serves as a foundational starting point.
Readers should consult with a nonprofit attorney regarding legal requirements, compliance, and other official guidance.
- Employment Posters
You are legally required to visibly post various employment posters in a visible place in your office. You do not need to pay a firm to help you be in compliance. Click here to post the latest versions each year. - Bylaws Revision
Nonprofit best practices recommend reviewing bylaws every three to five years. Eighteen years after our founding, we finally conducted a thorough review—and I’m glad we did. We identified several updates and changes that were long overdue.
Virginia Main Street (VMS) provided a few sample bylaws to use as a foundation for our revisions, and we then had a nonprofit attorney review the final draft. Because this document serves as a critical guide for the organization, that last step is essential and shouldn’t be skipped.
If you don’t have the capacity to revise your bylaws right now, at a minimum, ensure you have separate conflict of interest and whistleblower policies in place. - Employee Handbook
This is an important document that protects employees and helps create a transparent workplace where expectations are clear. It also protects the organization—especially in situations involving difficult team dynamics.
We used sample handbooks provided by VMS as a starting point and customized our version to reflect our workplace culture and commitment to staff retention. As with our bylaws, a nonprofit attorney reviewed the draft, revised unclear sections, and identified areas where information was inconsistent.
We incorporate the employee handbook into our recruitment and onboarding process. New hires are encouraged to review it and ask questions before their first day; I typically include it with the offer letter. Employees should also sign an acknowledgment confirming receipt of the handbook, as well as any updates made during their employment. - Fiscal Management/Financial Management Policy
Harrisonburg Downtown Renaissance developed a financial management policy that covers everything from check-signing protocols (for example, the dollar amount the executive director can authorize without board approval) to cash-handling procedures. This ensures transparency in how funds are managed and tracked and provides continuity during staff or treasurer transitions.
The policy also addresses gift acceptance, document retention, and donation guidelines, though these can be established as separate policies if preferred. Be sure to include clear procedures for developing, approving, and managing the operating budget as well. - State Corporation Commission (SCC)
Set up your login credentials for the SCC website before you need it. Sometimes a grant funder wants a current statement of good standing, and you don’t want to be at the end of a grant application without a file when you need to hit submit. - Annual Filings
Consider setting up calendar reminders for various annual filings, from sales tax exemption renewals to the State Corporation Commission annual report.
Click here to see Harbor Compliance’s resources for Virginia nonprofits. - Track All Donations
Harrisonburg Downtown Renaissance realized during our first audit that we should have been tracking all in-kind support received to support our work. We now maintain a tracker within our project management system, allowing team members to log each in-kind contribution—such as the business name, what was provided, the date, and the estimated dollar value.
We use GiveButter to record financial donations, though there are many CRM tools available to explore and compare based on your organization’s needs. If you’re just getting started, a simple spreadsheet that includes the donor’s name, gift amount, contact information, and donation date is a strong first step. This can also be shared with board members to help track thank-you notes and tax receipts. - Track Marketing and Advertising Expenses Separately
During an audit, your accounting firm will likely request a breakdown of marketing and advertising expenses. To simplify this process, we structured our chart of accounts in QuickBooks to include separate line items for marketing and advertising—the latter specifically covering paid placements in local media and on social platforms. - Set Up A Clean Chart of Accounts
First, get a subscription to QuickBooks Online for nonprofits through Tech Soup. Actually, get as many software subscriptions through Tech Soup as you can. Then, set up a chart of accounts with classes that align with your biggest projects and programs.
When all is set, running reports to track accurate budget to actuals, and when you are doing your Data Bonanza, you will have all the numbers in the right place for sound analysis and reporting. - Insurance
Every few years, list out your assets and material possessions, where they are kept (for example, at your office, in storage, etc.), and their estimated value. When I first completed this process, my agent realized that I was underinsured in a lot of areas of our General Liability Policy and was overvalued in others.
This review helped us ensure we have enough coverage for replacement if there is a claim and reduce costs for some areas of coverage. Reviewing all policies periodically with your agent is a good idea. - Workers Compensation
Harrisonburg Downtown Renaissance completes a workers’ compensation audit each year, which requires providing the auditor with a Certificate of Insurance (COI) for every contractor we work with, including touring musicians hired for our Levitt AMP concert series. To stay organized, we request a COI from each vendor at the time we engage their services, so it’s already on file when the audit occurs.
A COI for a workers’ compensation audit confirms that your subcontractors carry their own insurance, helping you avoid being charged additional premiums for their coverage. Without this documentation, their labor costs may be included in your premium calculations. Staying on top of this process can make a meaningful difference in keeping your insurance costs down. - Financial Reserves
It is a best practice for sustainable nonprofit management to have 6-12 months of operating reserves in case of an emergency.
In order to set our reserves target, I went through my most recent profit and loss report from QuickBooks to calculate the cost of eight months of salaries and benefits, rent, utilities, subscriptions, recurring payments, etc. We assume that if there is an emergency, our best hope is to survive as an organization and retain our staff and keep the lights on — we aren’t worried as much about paying for events, programs, and projects, so those totals aren’t included in the reserves. Those funds are in an income-earning account since we don’t intend on touching it outside of an emergency. - 1099s and W9s
I get confused all the time about which freelancers, sole proprietors, LLCs, or partnership vendors we need W9s from, so whenever we work with a vendor, before we pay them, we ask for a signed and dated W9 for our files. If they are paid less than $600 a year or if they are an S- or C-Corporation, they don’t need to get a 1099. You generally need a W9 when you pay for a service (e.g., your freelance webmaster).
These need to be mailed by January 31. You will also need to keep them on file for four years. This is to help ensure you don’t have to pay 24% back up withholding. - Standards of Operating Procedures (SOPs)
It wasn’t until an employee who launched our mega raffle fundraiser left and didn’t leave behind detailed instructions for how to keep it going that I realized how important SOPs were. We now have SOPs for most of our areas of work, which is a huge help if an employee has an emergency and others need to figure out how to pick up where they left off, and when there is a staff transition. - Board Member Contract
Harrisonburg Downtwon Renaissance created a Board Roles and Responsibilities agreement that outlines the job of board members, executive members, and our requirements for meetings, donations, and volunteer hours. We give this to all board members who express an interest in serving our organization and have them sign it during new board member orientation. The new board member should also sign the conflict of interest and confidentiality policies.
Author
Andrea Dono is celebrating her 10th year as Executive Director of Harrisonburg Downtown Renaissance, where she leads initiatives that strengthen and promote downtown Harrisonburg through economic development, partnerships, and community programming. She previously worked with the National Trust for Historic Preservation’s Main Street Center, supporting downtown revitalization efforts nationwide, and brings deep experience in community development and historic preservation to her work advancing a vibrant, thriving downtown.
Special thanks to the team at the Center for Nonprofit Excellence for their review and suggestions for this blog.
Did you know that the Center for Nonprofit Excellence has an incredible resource that has several sample policies and language you can use for your policies from reimbursement to record retention and destruction as well as sample job descriptions and vision statements? Check it out online!
Photo credit: Harrisonburg Downtown Renaissance
Virginia Main Street 