Helping NGOs do more with their money

Top Tips 20

Top Tips for Financial Governance

This Top Tip covers the financial governance role of the members of your NGO’s governing body (often referred to as ‘the Board’). It is also available in French.

The board has ultimate legal, moral, and financial responsibility for the organisation. Board members therefore represent and protect the interests of the beneficiary communities that their NGO works with, which is why they are often called ‘Trustees’.

Governance is the legal authority of a board to establish policies that will affect the life and work of the organisation while holding the board accountable for the outcome of such decisions. [from: www.boardsource.org]

Financial governance refers to policies and decisions that affect the financial life and health of organisations. There are five key roles for board members to fulfil this duty:

1. Making sure funds are used to help beneficiaries effectively

2. Making sure the organisation has enough funding

3. Making sure the organisation has effective senior management

4. Making sure that the organisation operates within the law

5. Making sure the board can handle its responsibilities effectively

 

Want to learn more?

Mango’s Training Course Financial governance in practice is a one day course that can be run as an in-house event. Contact us for more information.

View our calendar of courses around the world here: www.mango.org.uk/training/opentrainingprogramme

See Mango’s Guide to Financial Management for NGOs for free advice and tools, including a section on financial governance. See: www.mango.org.uk/guide.

 

Mango: All about Money and NGOs
Mango helps NGOs to make more of their money by: running practical training, supporting people in finance roles, advising NGOs and donors, and publishing free tools and guides: www.mango.org.uk


 

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