Common Good Vermont: Nonprofit Boards - Fiduciary Responsibility
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Description
Common Good Vermont's Lauren-Glenn Davitian speaks with J. Churchill Hindes PhD., President and CEO of the Visiting Nurses Association (VNA) of Chittenden and Grand Isle Counties.
Common Good Vermont asked Dr. Hindes about the fiduciary responsibility of Vermont nonprofit boards and to describe key indicators of a nonprofit’s financial health. Dr. Hindes sees nonprofits as business enterprise + mission fulfillment, encouraging strong financial reporting that provides structural information about finances and operations. Prospective board members should look for an external audit (with a clear opinion), formal budget and strategic plan—all measures of how seriously an organization takes itself.
Speaking to recent cases of embezzlement in municipal organizations, Dr. Hindes emphasizes important of clear financial procedures, systems of accountability (internal controls), the involvement of an active Treasurer and Finance Committee.
Resources:
Vermont Nonprofit Act– Title 11B – Vermont Statutes Annotated
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