Serving as a member of a nonprofit board is an honorable way to contribute to a cause that is important to you and give back to your community. However, many people do not realize that a board position comes with fiduciary responsibilities, including the following:

• Making careful decisions that protect the organization from unnecessary risk
• Understanding the status of the overall financial health of the organization by approving the budget and regularly reviewing financial statements
• Ensuring that effective control mechanisms are in place to prevent fraud, including external audits
• Verifying that all legal, ethical and tax obligations are fulfilled
• Establishing guidelines for evaluating organizational effectiveness and fulfillment of the organization’s mission
• Providing support for the chief executive in furthering the goals of the organization
• Advocating for the organization’s mission, including participation in events, networking and fundraising

While it is not necessary for every board member to be a financial expert, nonprofit board members are entrusted with many important tasks related to nonprofit governance. Contact H2R CPA at 412-391-2920 or team@h2rcpa.com for additional guidance.