While nonprofit success is measured in more than just dollars, nonprofits cannot succeed unless they have the resources to do their work — and nonprofit boards are responsible for ensuring they do. Board members must maintain a close eye on the financial direction of the organization and its economic stability if they are to truly fulfill their fiduciary responsibility. Written in nontechnical language, this book is the perfect guide to help board members with or without an accounting background understand their sometimes-complicated financial oversight responsibilities.
Chapter 1 introduces you to your overall fiduciary responsibilities, the importance of financial literacy, the three most common financial committees, the role of the board treasurer, and the nature of the board’s relationship with staff when it comes to financial oversight.
In Chapter 2, you’ll learn of the board’s role in budgeting and forecasting.
Chapter 3 introduces you to nonprofit financial statements and generally accepted accounting principles for nonprofits.
Chapter 4 focuses on the board’s role in overseeing an independent audit and reviewing your organization’s Form 990.
Chapter 5 delves into risk management.
Chapter 6 addresses the board policies and procedures that relate to financial oversight.
Each chapter includes red flags to look for when exercising your financial responsibilities. We end the book with case studies, a glossary of financial terms, and a checklist to use when reviewing your organization’s Form 990.
While financial information is not the only type of information used when making decisions for your nonprofit, it plays an important part in all important decisions, including those that may, at first glance, appear non-financial in nature. Armed with the knowledge presented in Financial Responsibilities of Nonprofit Boards, you, a decision maker, can better protect and enhance your organization’s capacity to serve your community.
This publication is part of The Governance Series, a six-book collection addressing all of the fundamental elements of service common to most boards.