Standard 6: Financial Oversight

Create a long-term financial plan: annual budget, address deficits, diversify funding, maintain reserves, and secure funds for stewardship costs. Land trusts are responsible and accountable for how they manage their finances and assets. Sound financial and asset management is critical for a land trust. Federal and provincial laws have financial reporting requirements, and financial records should be available to donors upon request. Poor financial management may jeopardize the future of the land trust and its land conservation programs. It could even lead to legal challenges against the land trust. Even a small land trust with modest revenue and expenditures should have annual budget and periodic financial reports, although the format of these may be simple. Organizations with larger budgets must follow specific reporting formats. Assuring sound financial management is one of the core responsibilities of the full board, no matter who keeps the books or prepares financial reports.