Federal law prohibits all corporations, including nonprofits, from retaliating against employees who “blow the whistle” on their employer’s financial management or accounting practices. Adopting a formal whistleblower policy and procedure for addressing complaints about financial practices that protects whistleblowers from retaliation will help a nonprofit comply with state and federal laws and can help ensure that if there is a problem, it will be investigated and fixed. Additionally, adopting a whistleblower protection policy signals to employees, board members, and the donating public that your nonprofit is open to hearing concerns or complaints about its practices, demonstrating that it values transparency and accountability practices.
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