The Non-Profit Board Member

Role Review

Important Items Non-Profit Board of Directors Need to KnowBoard members with minimum non-profit experience and little training need to quickly gain a good understanding on a variety of items specific to the non-profit industry. Smart Devine has identified the following items that should be at the top of your list. It is important that nonprofit organizations are governed by people who understand their role as a board member. You want to be effective but don’t always have all of the knowledge or expertise to stand out in the board room. So, before you begin to serve on the Board of Directors of your favorite non-profit, here are four things you need to know.

uCommitmentThe role of the Board Member in all organizations, non-profit as well as for profit, has changed substantially. Current events have created a renewed focus on board governance. Board members are expected to provide more than just their name and should become involved within the organization. For members of the board, involvement can include letter- writing campaigns, calling donors, on-site visits to see pro-grams in action, providing assessments of activities related to the board or the organization, joining board subcommittees, attending board meetings, as well as annual retreats.

vFundraisingJob descriptions for board members vary from one organiza-tion to the next. Each non-profit has a different structure where board members play an active role in fundraising. All members should take part in the development of the fundraising plan and not depend on one or two members to guide the process. Once a plan is in place, board members need to be comfort-able with raising money. Tapping your own network for help, personally calling or writing letters for end-of-year requests or serving as chairman of a gala can be part of your duties.

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Every dollar counts

wMission statementUnderstanding the mission statement is crucial to be an effec-tive board member. Each board member should ask themselves if the organization’s mission statement matches the goals of the organization. If a board member does not have a passion for the mission and work of the organization, it may be difficult to promote the organization.

xFinancial TransparencyHaving a firm understanding of the non-profit’s financial statements is key for board members. Most organizations hold each board member responsible to read and understand the organization’s financial statements. The board sets and approves the budget, approves expenses and compensation. Understanding the process (including tax filings) is critical for each member. Annual tax filings are public informa-tion and can be found on the state attorneys general website or guidestar.org.

Smart Devine provides a full range of accounting, advisory, tax and investigative forensic and litigation servicesto organizations across a variety of industries. For more information about our services call 267-670-7300 or visit our website at smartdevine.com.

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A c c o u n t i n g T a x A d v i s o r y

CHRISTOPHER NIWINSKI & SMART DEVINE CAN HELP YOUChris Niwinski and the Non-Profit Practice at Smart Devine can guide you and inform you about being effective in and out of the boardroom. We offer a series of white papers to non-profit organizations’ board members and leadership to enhance the understanding of duties and requirements for non-profit organizations. Please contact Chris for more information at 267-670-7345 or email cniwinski@smartdevine.com

Topics:• Introduction to the Non-Profit Industry• The Do’s and the Don’ts of Starting a Non-profit organization• What is My Role as a Board Member? • Understanding Non-Profit Financial Statements• Accounting for Endowments and Restricted Gifts• Understanding IRS Tax Form 990• Differences Between Non-Profit and For Profit Accounting• Fundraising and Development’s Impact on the Finance Department• The Board’s role in Risk Management• Non-Profit Planning• Challenges Facing Non-Profits

Christopher J. Niwinski, CPA Senior Consulting ManagerChristopher is a Senior Manager for Smart Devine. He has over 17 years of non-profit management consulting experience. He has extensive experience providing interim financial and operational management within the non-profit industry, specifically to hospitals, health systems and higher education institutions as well as government, foundations and other non-profit entities. Chris has also provided assistance to these clients through internal audits and control assessments, best practices reviews, finan-cial system process improvements, as well as grant and endowment management and expenditure reviews of non-profit entities receiving financial assistance.Chris earned his Bachelor of Science in Accounting from LaSalle University. He is a Certified Public Accountant in Pennsylvania and is a Member of the American Institute of Certified Public Accountants and the Pennsylvania Association of Certified Public Accountants, as well as on the Board of Directors of the Healthcare Financial Management Association (HFMA) and the LaSalle University Alumni Association.

ACCOUNTING OPERATIONSGAAP Audits A-133 AuditsSponsored Program ComplianceBudgetingEndowment Spend ReviewFinancial Risk AssessmentAccounting Outsourcing

FINANCIAL ADVISORYReconciliation and RemediationFinance Process Assessment and Reporting OptimizationInternal Audit OutsourcingEnterprise Risk ManagementInternal Control AssessmentsIT Audit

TAXESForm 990, 990PF, 990T, 1023 & 5500 ComplianceSales and Use Tax Exemption IssueEmployment Tax AssistanceTax Free financing Analysis501(c)(3) Tax Exempt Status QualificationsTax Controversy Support

CONSTRUCTION AND FACILITIESMonitoring Project Progress / Analyzing Cost EstimatesAdministration of Escrow AccountsCash Flow AnalysisIdentification of Sources of RecoveryFinancial Analysis of Builder

REVENUE MANAGEMENT ANDCOMPLIANCECredit Balance AnalysisComplianceRevenue Integrity ServicesReimbursementExpense Management

LITIGATIONInternal InvestigationsForensic AccountingFraud / Billing IssuesLitigation Support

Smart Devine provides the superior service your organization deserves. Our enhanced list of services include:

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