STANDING COMMITTEE · FINANCE & REVENUE
Finance Committee
Builds the budget and safeguards the association's money.
MISSION
Protect the association's financial health by developing the annual budget, monitoring spending and making sure the books are reviewed or audited.
WHO SERVES
A chair and vice chair, the president, a director from each region, and the treasurer as a non-voting member. This committee usually includes the board's financial leaders rather than general members.
Core responsibilities
- Develop the annual budget and recommend it to the board for adoption
- Manage the financial planning worksheet
- Review requests for unbudgeted or unforeseen expenses and recommend approval when warranted
- Examine the annual financial audit
- Recommend changes to the standing rules
Typical duties as written in association bylaws. Your bylaws and standing rules may differ.
SUGGESTED ACTIVITIES
Ideas for an active committee
- Set a budget calendar so committees submit requests on time
- Review income and expenses against the budget every quarter
- Set a reserve target — many non-profits aim for several months of operating expenses
- Recommend an investment policy for reserves
- Put internal controls in place: two signatures on large payments, separation of duties and monthly bank reconciliations
- Oversee the annual audit or financial review and the IRS Form 990 filing
- Review insurance coverage, including directors and officers insurance
ANNUAL CYCLE
- Late summerCollect committee budget requests
- FallDraft and recommend the budget
- QuarterlyReview financial reports with the board
- Year-endOversee the audit and Form 990
How to measure success
- Budget adopted before the fiscal year begins
- Reserves at or above target
- Clean audit or review with no major findings
Want help setting up your Finance Committee?
We can help write its charter, work plan and standing rules.