The purpose of your financial management policies is to ensure that limited funds are used effectively in running the programs and reaching the agency’s goals. The management of an organization’s finances will contribute to its success or failure.
Depending on the size of your organization and whether there are any paid staff, the following persons may be involved in the financial management of your agency:
The board is ultimately responsible for the agency’s financial solvency, which is the ability to pay all debts. However, board members, staff members and even the general membership share responsibility for ensuring sound financial practices.
Your board may want to establish a Finance Committee of two or more people to review records, reports, and budgets prior to their presentation and recommendation to the whole board. This committee may also conduct a financial review at the end of the fiscal year. Members of this committee often include, at the minimum, the Executive Director, the Board Chair and/or the Treasurer, who chairs the committee. Non-voting advisors may be appointed if the board desires.