Financial Committees (PDF)

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Table of Contents and Introduction

Level 201
It is essential that board members understand the financial roles and responsibilities of a nonprofit board. In Financial Committees, we provide guidance to help readers understand how to configure these committees while taking into account the size and available resources of the board.
Learn about the functions that finance, audit, and investment committees should serve on your board — both as individual groups and as a collective resource. Discover how these committees can address challenges in helping the rest of the board understand complicated fiscal issues, such as how to read financial statements and how to take part in federal, state, and local reporting.
We also discuss
  • the core duties of a single finance committee and non-core duties of supporting financial groups
  • right and wrong reasons to distribute responsibilities among financial committees
  • the various groups' roles in maintaining the independence of directors, officers, and auditors
  • potential challenges in combining financial groups
Help your financial committees properly oversee financial planning and management of the organization by ensuring that all fiscal aspects of operations are in order.