I take exception with Roger Monroe’s assertion (Straight Talk, Feb., 2024) that the fiduciary responsibility of not-for-profit (NFP) boards is “to oversee the administration.” This is a gross simplification of NFP board and board member fiduciary responsibility. Having served on a number of NFP boards including in the roles of chair and treasurer, let me assure you that excellent NFP boards and board members have been oriented to and routinely practice the following responsibilities and obligations:

• Maintain the financial integrity of the organization by protecting assets and exercising due diligence.
• Regularly reviewing financial statements (quarterly, or better yet, monthly), and questioning the board treasurer, CEO, and CFO.
• Approving the statements at each meeting and filing them for audits.
• Reviewing annual organizational audits and assuring that they correctly reflect the financial standing of the organization.
• Having an audit committee that meets with the CEO and auditing firm prior to board approval to discuss and question possible irregularities.

These are commonly understood as “fiduciary responsibility” and have become “best practices.” “Trust But Verify” is the bottom line for NFP boards and their individual members. Failure to collectively and individually exercise due diligence unfortunately can have devastating consequences.
Jim Runyon
Peoria