Financial management and the board

The board must ensure that the assets or resources of the charity are used exclusively to pursue its objects or purposes. 

The board’s financial responsibilities include:

• Safeguarding the charity’s assets, funds and resources. This includes ensuring their safekeeping and insurance and controlling the use of funds and monitoring income and expenditure
• Overseeing the charity’s financial position and ensuring it continues to be viable
• Ensuring that funds given for a specific purpose (restricted funds) are only used for that purpose 
• Ensuring that rules are followed governing any assets held in ‘permanent endowment’ 
• Making decisions on financial policy (eg in relation to investments and reserves)
• Complying with legal requirements relating to finance.

Many charities delegate day to day financial management tasks to specific trustees and/or to staff and volunteers. Some charities delegate the detailed oversight of finances to a sub-committee. But remember: the trustee board takes overall responsibility for the financial health of the charity and the use of its funds and should be in overall control and approve the relevant policies.

Don’t let finance be daunting. Further guides exist to help trustees carry out their financial duties.