What Can Your Board of Directors Do to Reduce Financial Risk?

If you’re a board member at a nonprofit, you have a fiduciary duty to the organization to make sure that the organization is run with care for the mission, programs, and finances (see our previous post on fiduciary duty). Perhaps the toughest duty of the board is to implement financial controls to reduce financial risks, especially when your board members may not be experienced in nonprofit requirements.

Luckily, our friends at IdeaEncore, a nonprofit resource center that strengthens nonprofits by making it easy to find and share ready-to-use documents and tools, have shared a great free resource: “Controls” for Small Nonprofit Organizations: A Guide for Board Members. The guide, written by Putnam Barber, Senior Researcher at Idealist.org and Robert Fleming, CPA, a shareholder at Clark Huber P.S., lays out eleven steps that your club or association board can take to focus on high organization performance and reduce financial risks.

What’s the top tip? Have the bank statements opened and scanned by someone who understands the organization’s work but has no role in financial operations. This person can be a board member or a senior staff member, but with most clubs and associations being entirely volunteer-run, think about asking a board member who is not the treasurer to fill this role.

Learn what the other 10 tips are by visiting IdeaEncore and clicking “download” to set up a free IdeaEncore account to receive access to “Controls” for Small Nonprofit Organizations: A Guide for Board Members.

About IdeaEncore
IdeaEncore is a user-generated knowledge management and online file sharing system. IdeaEncore offers free and easy registration, online file sharing, some free file downloads and free file browsing. Preview, post, or find documents by browsing user-generated items in their nonprofit resource center.

I highly recommend registering with IdeaEncore and taking a look around their website for more great nonprofit resources on topics ranging from fundraising to technology. I consistently find great template policies, sample board meeting minutes, and strategic planning tools, so keep IdeaEncore in mind next time your board is looking for resources.

About Hillary Beehler

I'm the Organization and Member Services Director for Washington Youth Soccer, the US Youth Soccer charter association for the State of Washington. WA Youth Soccer serves over 125,000 registered players across all levels of play, from Under 5 to Under 19.
This entry was posted in 501(c)(3), Board Resources, Organizational Structure, Policy, Resources, Risk Management, Volunteer. Bookmark the permalink.

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