Communicating institutional values through organisational policies: A quick guide
A few years ago, a nonprofit I worked closely with was doing excellent work in education—growing steadily, expanding from urban to rural areas, and reaching more children through government schools and partner organisations. When they decided to apply for funding from institutional donors, they hit an unexpected roadblock: the application asked them to tick which policies the nonprofit had in place. They realised they couldn't proceed without first drafting their organisational policies.
Many small to mid-size nonprofits draft policies only when donors require them or when faced with a problem. But there's no need to wait for either. Organisational policies help with governance, streamline operations, and provide comfort to donors. More importantly, they reflect the values and culture you want to institutionalise.
Why organisational policies matter
Well-documented policies do more than tick boxes on funding applications. They:
- Reflect your values and culture. Policies communicate expected behaviours, practices, and the manner of interaction you want across the organisation.
- Enable clear, consistent decision-making. When decisions are grounded in documented policies, they're seen as fair and unbiased rather than arbitrary.
- Create shared understanding. Policies bridge the gap between founders, senior management, and team members, ensuring everyone is aligned on organisational principles.
- Help distributed teams operate effectively. When teams are spread across locations and don't have daily touchpoints, policies provide the framework for consistent action.
Basic must-have policies for all nonprofits
Here are the critical policies every nonprofit should have in place:
Anti-bribery and corruption policy
A documented commitment to act professionally, fairly, and with integrity in all dealings.
Code of conduct policy
Sets out the fundamental standards employees should follow in their everyday actions.
Conflict of interest policy
Ensures that an employee's private affairs or financial interests don't conflict with their work duties or impair their ability to act in the organisation's interest.
Financial management policy
Protects organisational assets, ensures accurate record-keeping, and maintains compliance with regulatory and legal reporting requirements.
Human Resource policy
Covers all aspects of the employee journey—recruitment, probation, leave, travel and reimbursement, resignation processes, and more.
Procurement policy
Ensures procurement of goods and services is done in a fair, competitive, and transparent manner.
Child protection policy (CPP)
A must for organisations working with children. It explains the organisation's commitment to protecting children from harmful influences, abuse, and exploitation.
Sexual harassment policy
Required by law. It should explain the process for registering a complaint, detail the committee that will review complaints, and outline action steps. Posters summarising this policy must be displayed on notice boards.
Volunteer policy
Defines payment policies, dos and don'ts, and the code of conduct volunteers must follow. This should be signed by every volunteer when they join.
Steps to draft policy documents
Step 1: List what needs to be covered
For each policy, make a list of areas to address. Understand how the organisation currently operates in each area and identify if any changes are required.
Step 2: Research and reference
It's useful to read policy documents from other organisations to understand structure and ensure you haven't missed critical points.
Step 3: Draft for implementation, not just compliance
Write policies that the entire team understands and can implement. Keep the length and language appropriate for the teams who will actually use these documents—this isn't just a "good to have" exercise.
Step 4: Finalise with leadership and legal review
Founders, trustees, or the management committee should finalise policies after discussing them with the wider team. Run the documents past a legal expert to ensure all laws are adhered to.
Step 5: Develop SOPs where needed
Decide if Standard Operating Procedures (SOPs) are needed to drive implementation. SOPs clearly identify who is responsible for implementing policies and within what timeframe tasks should be completed.
Communicating and implementing policies
Once policies are documented and approved, the next step is communication. Take the entire team through each policy in detail. Explain what it means, how it impacts their work, and why it matters. Answer questions and clarify doubts.
Upload policies on the organisation's intranet or provide a handbook to employees. All team members should sign a document stating they have read the policies and will follow them.
Put a feedback mechanism in place so any employee can flag if a policy is not being followed.
Review and upgrade
Policies should be reviewed every few years to ensure they're current. If the size of the organisation has grown or the organisational structure has changed, a review is definitely needed.
Toybank's experience
Vikram Nerurkar, COO of Toybank, shared how putting policies in place transformed decision-making:
"As any organisation expands, simple and unambiguous ethics, values, and policies always hold a pivotal role in the direction the organisation takes over a longer period. Right policies at the right time provide organisation-wide nudges to keep the vision and work aligned. The fundamentals required for quick and consistent decision-making were made possible after we got the policies in place. The true turning point was when, just a couple of months after rollout, the team started using 'As per policy' in normal discourse."
Final thought
Every NGO wants to institutionalise its values and culture, irrespective of size. Well-documented policies ensure that the core values and culture of your organisation are uniformly understood by team members, volunteers, and donors. Don't wait for a crisis or a donor requirement to prompt action—build the foundation now.