Document / Practice

Practice 3A: Board Responsibility

Posted 2017 Updated March 6, 2018
Land Trust Alliance
About This Practice

This guidance covers Practice 3A, which includes four elements:

  1. Individual board members are informed of and understand their role and their responsibilities as nonprofit board members, including their legal and fiduciary duties

  2. ⬤ The board provides oversight of the land trust’s finances and operations by:

    1. ⬤ a. Reviewing and approving an annual budget

    2. ▲ b. Working to ensure that sufficient financial resources are available

    3. ⬤ c. Receiving and reviewing financial reports and statements in a form and with a frequency appropriate for the scale of the land trust’s financial activity

    4. ⬤ d. Reviewing the externally prepared financial audit, review or compilation

    5. e. Adopting written policies or procedures for the responsible and prudent investment, management and use of financial assets

  3. ⬤ The board hires, oversees and evaluates, at least annually, the performance of any executive director (or chief staff person)

  4. The board may delegate decision-making and management functions to committees, provided that committees have clearly defined roles and report to the board or staff

Accreditation indicator element | ■ Terrafirma enrollment prerequisite | ▲ Required for both