Non –profit Board of Director’s Fiduciary duties

The board has to establish the appropriate procedures that will ensure that there is fiscal transparency and prudence in the management of the organization.  The board has gain access to the financial reports, ensure there are internal controls and an Audit Committee that these reports. The board should also demand that financial statements are accurate and complete and that the generally accepted principles are followed in their preparation (Weikart, Chen & Sermier, 2013).  The daily financial and accounting tasks must be delegated to individuals with the right skills under the guidance of established policies, so that two or more persons bear the responsibility for the finances.  Such responsibilities include receiving, depositing and the expenditure of the funds. The board should review and then approve the annual budgets and check the revenue and expenses against the approved budget to look into whether the funds are being allocated in the right way (Weikart, Chen & Sermier, 2013).

While determining their compensations, the board should allow independent members to set the rates of executive officers, and makes sure the compensation decisions are based on job performances.  Moreover, there should be an establishment of procedures and policies by the board that guide the managers during the investment of its funds, which will ensure responsibility in the process as per the legal requirements (Weikart, Chen & Sermier, 2013). The policies should also include guidelines on how any returns from the investment activities will be allocated for the intended purposes.  Also, through the policies, the board should determine, review or approve any payment or reimbursement of various expenses that a person carrying out business with the non-profit organization or on its behalf (Tschirhart, & Bielefeld, 2012).