CPOA key terms

The legal obligation of board members and officers to act in the organization's best interest, managing its money and assets with loyalty and reasonable care rather than for personal gain.

A board member's responsibility to stay informed, attend meetings, ask questions, and make decisions with the diligence a reasonable person would use in similar circumstances.

The obligation to put the organization's interests ahead of personal, family, or outside business interests, and to disclose and step back from decisions where those interests conflict.

A situation where a board member, staff leader, or volunteer has a personal or financial stake in a decision, requiring disclosure, recusal, or other safeguards to protect the organization.

A written procedure that lets staff, volunteers, or others report suspected wrongdoing without fear of retaliation and defines how reports are received, investigated, and resolved.

A multi-year document that states the organization's mission, long-range goals, chosen priorities, and the broad approaches it will use to reach them, guiding decisions and resource allocation.

A structured review of an organization's internal strengths and weaknesses alongside external opportunities and threats, often used to shape strategy and set priorities.

A visual map linking resources, activities, outputs, and outcomes so planners and funders can see how a program is expected to create change and how success will be measured.

An explanation of the steps and assumptions that connect a program's actions to the long-term change it seeks, showing why the strategy is expected to work.

The systematic tracking of changes in participants, communities, or conditions that result from a program, as distinct from simply counting activities or people served.

A specific, quantifiable measure chosen to track progress toward an important goal, giving leaders and boards a quick read on whether performance is on track.

A financial plan covering one fiscal year that estimates expected revenue and planned expenses, providing the authority and limits within which managers operate.

Money given for a specific purpose or time period by a donor or funder, which the organization may use only as directed and must track separately from general operating funds.

Money the organization may spend on any mission-related purpose at its discretion, giving leadership flexibility for operations, overhead, and emerging needs.

A bookkeeping method that separates resources into distinct funds by purpose or restriction so leaders and donors can see how each pool of money is used.

Policies and procedures such as segregation of duties, approvals, and reconciliations that protect assets, ensure accurate records, and reduce the risk of fraud or error.

A control that divides responsibilities so no single person both authorizes a transaction and records or handles the related cash, reducing opportunities for undetected fraud.

Savings set aside to cover expenses during revenue shortfalls or emergencies, typically measured as months of operating costs and governed by a board-approved policy.

Comparing actual revenue and spending against the approved budget to explain differences, spot trends, and decide whether corrective action is needed.

An independent examination of financial statements and records by a qualified outside party that results in an opinion on whether the statements are fairly presented.

The annual information return most tax-exempt organizations file with the U.S. Internal Revenue Service, disclosing finances, governance, and program activities and available to the public.

Recognition under federal law that an organization qualifies for exemption from income tax because it operates for charitable or other approved purposes and meets ongoing requirements.

An improper transfer of an organization's assets or benefits to an insider such as a director or officer, which can jeopardize tax-exempt status and trigger penalties.

A transaction in which an insider receives more than fair value from the organization, exposing the recipient and approving managers to excise taxes and reputational harm.

A written rule covering employment matters such as hiring, pay, leave, conduct, and discipline that guides consistent treatment of staff and reduces legal risk.

A document stating a position's duties, reporting lines, qualifications, and expectations, used for recruitment, setting pay, and evaluating performance.

A periodic review in which a supervisor and employee discuss results, competencies, and development needs, usually tied to goals and documented for personnel records.

Preparing for departures of key leaders by identifying needed capabilities, developing internal talent, and documenting critical knowledge so services continue without disruption.

The cycle of recruiting, screening, training, supporting, recognizing, and evaluating unpaid workers so their efforts are effective, safe, and aligned with the mission.

Ongoing work to recruit, orient, educate, and evaluate board members so the governing body has the skills, diversity, and engagement needed to fulfill its role.

The organization's governing rules covering matters such as board size, terms, meetings, voting, officers, and amendments, which must be followed and kept current.

The document filed with a state to legally create a nonprofit corporation, stating its name, purpose, and structure and forming the basis for tax-exemption applications.

A systematic assessment of whether a program was implemented as intended and whether it produced the desired results, used to improve services and inform funders.

A structured process for identifying gaps between current conditions and desired conditions in a community, used to design services that address real priorities.

Identifying, prioritizing, and reducing threats to people, property, finances, and reputation through measures such as insurance, training, policies, and contingency planning.

A written schedule of revenue goals, target sources, methods, responsibilities, and timelines that coordinates development work with the organization's budget and strategy.

A compelling written statement of the need, the organization's approach, and the impact donors make, used as the foundation for appeals, proposals, and conversations.

The relationship-building steps of identifying, informing, involving, and asking prospective supporters, followed by stewardship that thanks them and shows the impact of gifts.

Deliberately involving people and groups affected by or interested in the organization, such as clients, partners, and neighbors, in dialogue that shapes decisions and builds trust.

A document setting out audiences, key messages, channels, timing, and who speaks for the organization, so public information stays consistent and supports strategic goals.

Prepared procedures for informing stakeholders quickly and accurately during an incident, including who speaks, what channels are used, and how facts are verified.

The roles, rules, and decision rights that determine how data is collected, accessed, used, shared, and protected, ensuring quality, privacy, and accountability.

Practices and legal obligations for collecting only necessary personal information and keeping it secure, used appropriately, and shared only with proper consent or authority.

Measures such as access controls, training, backups, and monitoring that protect systems, devices, and sensitive information from unauthorized access, loss, or disruption.

A concise visual summary of selected measures and financial results that gives boards and managers a quick, regular view of performance and areas needing attention.