The Finance Committee…… Should Your Nonprofit Have One?

The primary purpose of a Finance Committee is to oversee the financial functions of a nonprofit.  It is a dedicated group that focuses on all things financials.  It can include board members and even individuals outside the organization if they possess the needed skill set.

Do all nonprofits need a Finance Committee? 🤔 Not necessarily.  If you are a smaller nonprofit, you probably do not, but a larger one may find one useful so that all the financial responsibility is not placed on one person.

Here are some of the responsibilities of a finance committee:

🪙Create and review yearly budgets with Board Members

🪙Monitor internal controls and create financial policies when needed

🪙Ensure financial statements are accurate and completed in a timely manner

🪙Contact person for financial statement audits

🪙Oversee investment activities

🪙Anticipating any financial problems

Already have a finance committee?  Are they overseeing all the financial functions in your nonprofit?  Do adjustments need to be made?  If you don’t have a finance committee, think about what your nonprofit needs in terms of finances and then determine if you should form one or not.