IFFOR develops policies that apply to all owners of dot-xxx domain names.

Broadly, there are three ways in which IFFOR develop polices or issues relating to dot-xxx and broader Internet users.

  1. Best Practices
  2. Issue reports
  3. A formal policy development process (PDP)

IFFOR also oversees a Grants Program that can provide funds to activities that are in line with the organization's Policy Goals and advance IFFOR's goals.

Best Practices

One of IFFOR's Baseline Policies (Policy I) covers the introduction of Best Practices Guidelines. Although the baseline policies refer to new policies being created through the formal policy development process (see below), IFFOR already considers that the implementation of a number of the other Baseline Policies represent Best Practice Guidelines (for example the Abusive Registration rules adopted by ICM Registry for dot-xxx domains). 
The creation of any new Best Practices Guidelines will come from IFFOR's Policy Council. The Council has decided it will to be guided by dot-xxx users as to what issues should be formalized in guidelines.
Once a set of guidelines are formally approved, all owners of dot-xxx domain would be expected to comply with them.

Issue reports

The first stage in the formal PDP process are issues reports, which are IFFOR's way to keep its finger on the pulse of what is going on in the dot-xxx registry and on the broader Internet. 
Topics that people feel should be consider for action by IFFOR can be submitted via the IFFOR Public Participation system. IFFOR will prepare a issue report  for review by the Policy Council. The final issue reports will also be published for public review.
Although it is expected that there will be a limited number of issues reports that will require a full PDP process, the reports themselves should serve as a resource and reference for both IFFOR and the broader community on issues of current importance. 
All issues reports will remain on file at IFFOR and be referred back to as other reports are compiled or a PDP process is opened.

Policy Development Process (PDP)

This the formal process that IFFOR undergoes for any new policy that will have a binding impact on all dot-xxx owners. A PDP process is expected to take anywhere from four to eight months and will include at least two periods of public comment as well as the creation of a task force and a series of formal reports.
Due to the significant resources and reporting requirements around the PDP process, the IFFOR Policy Council's will not enter in the process lightly and expects to use the issue report process (see above) to draw attention to any pressing issues. 
However, when the Policy Council feels an issue is of sufficient significance that a PDP process will benefit dot-xxx users, it will vote to proceed on the matter and IFFOR will then go through the 12-step approval process to decide on a binding policy.
See the PDP webpage for a full explanation.

Grants Program

IFFOR has  a grants program; a portion of its funds will be distributed  to further its policy goals.

The Grants program may fund research, technological development, advocacy, child protection, and legal challenge that fits firmly within IFFOR's policy goals and on the dot-xxx top-level domains.