The nonprofit finance fund Committee is a standing committee of the Board and is usually chaired by the Treasurer of the Board. The committee is responsible for reviewing and advising on the finances of the organization. Specifically , the committee responsible for the internal control, independent audit and financial analysis of the organization.
The nonprofit finance fund Committee reviews all financial statements and reports on the financial activity of the full board. The full board may be more able to respond to global data significant financial trends and issues identified in a report accompanying narrative . Although each member of the board should have the opportunity to review the level of earnings reports and expenses entities to understand the impact on the organization , members who have no experience in reading financial statements may be lost in overly detailed statements . To assist the Board in fulfilling its oversight role , it is important that the Executive Director and the Finance Committee to present information clearly and concisely as possible.
These are the basic responsibilities of the nonprofit finance fund Committee :
1. Guide the Council of any financial responsibility.
2. Periodically review the income and expenses , balance sheet , the investments of the organization and other matters related to the continuity of its solvency.
3. Approve the annual budget and submit it to the full Board for approval.
4. Maintain an appropriate capital structure .
5. Ensure the maintenance of the assets of the organization, including a prudent investment management of the organization.
Specific tasks of the nonprofit finance fund Committee could perform :
1. Review the income and expenses on a monthly committee meeting .
2 . Ensure that funds are spent appropriately organizing (ie , use of funds).
3. Develop an investment strategy .
4. Ensure the preparation of an annual audit , tax form ( 990 ) as well as the audited financial statements .
5. Support staff as needed.
A committee of about 5 or 6 persons responsible should be able to provide valuable nonprofit finance fund leadership to the Board of Directors .