Financial Management for Nonprofit Organizations, 3rd Edition

APPENDIX 4BSUMMARY OF TRUSTEE RESPONSIBILITIES AND QUALIFICATIONS

BOARD OF TRUSTEES

SUMMARY OF RESPONSIBILITIES Members of the board of trustees of a nonprofit organization must assume their role with a full understanding of the accountability and liability, both personal and organizational, resulting from their service in their particular state. Specific responsibilities include but are not necessarily limited to:

• Determine the organization's mission and ensure that it is being carried out, as documented by federal and state law.
• Set policies for ensuring that the organization operates according to its bylaws, the law, and ethical standards.
• Ensure compliance with the rules and regulations set by federal, state, and local governments that have jurisdiction over it (e.g., filing tax returns with the IRS).
• Make certain that donated funds are used for the purposes of the organization, as prescribed by the donor.
• Fulfill the legal requirements of the organization as an employer, including the payment of payroll taxes for the organization's employees.
• Develop the organization's overall program and engage in long-range strategic planning to establish its general course for the future.
• Oversee the financial health of the organization and establish fiscal policy and boundaries with budgets and financial controls.
• Provide adequate resources to operate the organization through direct financial contributions and a commitment to fundraising.
• Select and evaluate the performance of ...