Bridgespan Group Essay
According to the Bridgespan Group one of the main responsibilities of nonprofit board members is ‘to maintain financial accountability of their organization. Board members act as trustees of the organization’s assets and must exercise due diligence to oversee that the organization is well-managed and that its financial situation remains sound.’
Oversight by state and federal regulators is an extremely important job that must be done, correctly and with fidelity, by the Executive Director and Board. A nonprofit can have an amazing mission statement and a worthwhile purpose but if someone isn’t monitoring the law and regulations that the nonprofit must abide by then nothing else matters.
Identifying and managing financial risk is an area where …show more content…
The first standard listed on the give.org website is Board Oversight, it states ‘Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.’ The Leukemia & Lymphoma Society also met standards such as Board Compensation, Conflict of Interest and Effectiveness Policy.
In my opinion I believe it is particularly important for a nonprofit organization to develop and maintain an internal control system. I feel that an organization needs to have a plan in place so that everyone, no matter what their job is, is aware of their role, responsibilities, and expectations. If all members of a team from Executive Director to the newest employee knows exactly what their job is and what is expected of them the team functions better and the organization does a better job of achieving their
Oversight by state and federal regulators is an extremely important job that must be done, correctly and with fidelity, by the Executive Director and Board. A nonprofit can have an amazing mission statement and a worthwhile purpose but if someone isn’t monitoring the law and regulations that the nonprofit must abide by then nothing else matters.
Identifying and managing financial risk is an area where …show more content…
The first standard listed on the give.org website is Board Oversight, it states ‘Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.’ The Leukemia & Lymphoma Society also met standards such as Board Compensation, Conflict of Interest and Effectiveness Policy.
In my opinion I believe it is particularly important for a nonprofit organization to develop and maintain an internal control system. I feel that an organization needs to have a plan in place so that everyone, no matter what their job is, is aware of their role, responsibilities, and expectations. If all members of a team from Executive Director to the newest employee knows exactly what their job is and what is expected of them the team functions better and the organization does a better job of achieving their