Board Super Heroes!
The fiduciary role of a board member is often one of the more misunderstood responsibilities. It isn’t uncommon for Executive Directors or CEO’s of a nonprofit to hear from a board member, “I don’t really pay attention to the financials. Isn’t that the treasurer’s job?” While certainly this role involves the financial health of the organization, it is really much more than that. In fact, the fiduciary role of a board member is that of a Superhero!
Nonprofit board members serve as fiduciaries because they are legally responsible for managing a nonprofit’s assets and making financial decisions for the organization they represent. For this reason, it is important a board member understands the organization’s budget, financial statements, and accounting practices.
The assets may come from a variety of sources including grants, fundraisers, fees for services, government funding, or charitable donations. The board’s responsibility is to ensure the assets are used for their intended purpose, whether It is for animal welfare,
protecting the environment, food and shelter relief, or other causes.