One of the key responsibilities of the board is to ensure that the funds are managed in a responsible and prudent manner. This typically involves selecting an advisor who can guide the board and help them fulfill their fiduciary duty - ideally an advisor who will act as a co-fiduciary.
Every nonprofit board has a unique makeup of individuals - varying in ages, backgrounds, and ethnicities - who come together for an organization they believe makes a difference.
So how does your organization find the right advisor?
Before selecting a pool of advisors for consideration, it is important to identify the type of advisor that is appropriate for your organization.
Once your group knows the type of advisor they would like to consider, the second step is to identify a pool of qualified candidates. This typically involves issuing a request for proposal (RFP). The RFP gives your organization a systematic way to evaluate potential candidates. Generally a RFP will include questions in the following areas:
When you have a pool of qualified candidates, evaluate their responses to the RFP and select two or three for your board or committee to interview. Use this opportunity to evaluate items that were not included in the RFP such as:
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