One can debate what all the dimensions of board leadership entail, but one essential aspect is written into the law governing nonprofit organizations: fiduciary responsibility. These are big words, and they don’t mean simply approving a budget or signing off on an audit. In the deepest sense, accepting fiduciary responsibility means integrating financial thinking into every aspect of board governance. If you don’t know the basic financial information by heart—if you’re not steeped in the numbers and understand why they’re important—it’s very hard to exercise that responsibility.

What Every Board Member Should Know About Financial Management… and Probably Doesn’t
Andy Robinson
Nonprofit Quarterly
13 September 2020

https://nonprofitquarterly.org/what-every-board-member-should-know-about-financial-management-and-probably-doesnt/