March 2008: Volume 3

This month we want to expand the topic of financial oversight and explore the board’s role as financial managers for the nonprofit organization. Each board member has a fiduciary duty to and for the organization. Each member is responsible for ensuring that the organization, as well as the finances are properly managed and safeguarded.

Let's explore the four primary areas in which boards should be involved in order to provide proper oversight and ensure the nonprofit organization is exercising due diligence and achieving fiscal excellence.

• Policies and Procedures -- all nonprofit boards should develop, adopt, or approve financial policies and...
• Budget -- the board is ultimately responsible for approving the annual budget for the organization...
• Financial Reports -- the board should review a variety of reports on a regular basis (monthly or quarterly)...
• Audits -- the audit laws in each state differ so we recommend you check your state laws to make sure...