Montana Nonprofit Association

promoting a strong nonprofit sector in MONTANA

Principle: Human Resources

Effective management of human resources is essential for achieving successful organizational success.  Nonprofits should adopt and follow fair and equitable human resource and volunteer management practices so as to attract and retain qualified individuals. Nonprofits must adhere to all legal employment practices and provide a safe work environment. Nonprofit organizations should establish specific policies and practices that promote mutual cooperation to advance the organization’s interests and that reflect appropriate industry standards for remuneration.


Recruitment, Retention, and Succession 

1. A nonprofit must comply with all local, state, and federal employment laws in hiring and employing personnel. MT, US 

2. A nonprofit and its board of directors should establish and abide by an encompassing equal opportunity employment policy. US 

3. If the nonprofit employs staff, the board of directors should annually review its overall compensation structure, using industry-based surveys of salaries and benefits, and set compensation for the organization’s Chief Executive Officer (or equivalent).  The board of directors should establish policies on employee benefits.  Also in “Governance” 

4. A nonprofit should determine the status of any individual providing services in return for compensation (employee or independent contractor).   

5. A nonprofit should utilize the skills of individuals—employees or volunteers—who are suited for the positions they occupy and who are committed to the goals, values, and objectives of the organization.

6. A nonprofit should strive to employ staff and utilize the abilities and talents of volunteers who reflect the diversity of the community and constituents served, as appropriate to advance program effectiveness.

7. A nonprofit should have a formal orientation program for new employees.  It should include, at a minimum, the history and mission of the organization, personnel policies and procedures, criteria for standards of performance, and all state and federally mandated employee training programs. 

8. A nonprofit should also support the education and professional development of personnel and should provide employees with opportunities for growth and advancement.

9. A nonprofit should provide employees with clear, current job descriptions and the tools needed to produce quality work.  Similar practices should be implemented for volunteers.

10. A nonprofit should annually evaluate the job performance of staff, providing guidance, articulating goals, objectives and expectations; it should also provide clear and equitable procedures for taking disciplinary action.

11. A nonprofit should have a system in place for the succession of employees, separate from a transition plan, most notably for the chief executive and key board leadership.
Human Resource Policies

12. A nonprofit should adopt a set of specific policies and procedures for employees and another for volunteers.

13. A nonprofit should maintain a personnel file for each employee. 

14. A nonprofit should establish employee record(s) retention policies and procedures that are consistent with applicable laws and best industry practices.

15. When appropriate, nonprofits should conduct background checks on individuals who come in contact with vulnerable populations, who perform financial duties, or who serve in other sensitive areas.

16. Nonprofits should continually strive to provide a safe and healthy work environment.

Planning  ~  Financial Management 

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