About the Finance Committee
Purpose:
The role of the Finance Committee is primarily to provide short- and long-term financial oversight for the organization. Typical task areas include budgeting and financial planning, financial reporting, and the creation and monitoring of internal controls and accountability policies and practices. The presence of a fully engaged Finance Committee is a strong indication that an organization is committed to good stewardship and is actively building and preserving the financial resources necessary to support the accomplishment of its mission, both for the short and the long term.
Role of Committee Members:
The committee members establish and review internal financial controls and fiscal policies to ensure compliance with nonprofit standards and maintain transparency in all financial transactions. The committee regularly reviews financial statements, cash flow reports, and investment performance to evaluate overall financial health. Working closely with auditors, the committee oversees the annual audit process, reviews findings, and ensures timely implementation of recommendations. In collaboration with fundraising and development teams, members help identify and support sustainable revenue sources such as grants, sponsorships, and legacy giving. The committee also monitors investment accounts and endowment funds in alignment with the association’s investment policies and risk tolerance. Finally, it reports regularly to the Board of Directors, providing clear financial updates and identifying trends, risks, and opportunities that support informed decision-making.