Committee Purpose:

The Finance and Risk Management Advisory Committee (FinCom) is a standing advisory body to the Board of Directors. It plays a crucial role in supporting the Board’s fiduciary responsibility for financial oversight by providing expert analysis and guidance on financial and risk-related matters. The Committee’s insights help ensure that the Board can make informed, strategic decisions in alignment with Sierra Club’s mission and priorities. While the Committee reviews and advises on financial and risk issues it does not exercise management or operational authority.

Building on this advisory role, the Finance and Risk Management Advisory Committee is committed to providing recommendations to the Board on financial and risk-related matters. This commitment includes the formulation and recommendation of policies, the responsible use of assets and resources, long-term sustainability, and oversight of Sierra Club’s general administration and reporting. The Committee's work is grounded in a strong commitment to Sierra Club’s values.

Key Responsibilities

The Finance Committee Member will:

• Review the organization's financial statements and monitor its financial position, performance, and cash flow.
• Review the annual operating and capital budgets and recommend them to the Board for approval.
• Monitor financial performance against approved budgets and investigate significant variances.
• Review financial forecasts and long-term financial sustainability.
• Ensure appropriate financial controls, policies, and procedures are in place and operating effectively.
• Oversee the organization's risk management framework.
• Review and recommend policies on reserves, investments, banking, borrowing, and financial delegations, in partnership with the Investment Committee.
• Ensure compliance with relevant financial reporting, taxation, and regulatory obligations.
• Review the financial implications of strategic initiatives and major funding proposals.
• Identify material financial, operational, and legal risk exposures to the Sierra Club, review the steps taken to manage such exposures, and recommend relevant policies and actions.
• Support good governance by promoting transparency, accountability, and prudent stewardship of charitable resources.
• Report committee recommendations to the Board.

Member Qualifications

Effective Finance and Risk Management Advisory Committee members combine financial expertise with a broad set of skills and personal attributes, including a dedication to the organization’s mission, goals and objectives. Committee members should have a balanced mix of background and experience, with members who are both financially fluent and independent.

The successful candidate must demonstrate the following skills, experience and competencies:

• Relevant experience in finance, accounting, business, banking, auditing, risk management, non-profit operations or financial management.
• Ability to understand and interpret financial statements and budgets.
• Strategic thinking and sound analytical skills.
• Ability to maintain the confidentiality of sensitive information and exercise due care, diligence, and independent judgment.
• Strong communication and interpersonal skills.
• Commitment to the mission and values of the organization.
• Ability to work collaboratively and constructively as part of a Board Advisory Committee.
• Ability to commit the necessary time to prepare for and attend meetings.

The strongest candidates will also demonstrate the following skills, experience and competencies:

• Knowledge of current accounting standards, federal and state regulations, and tax laws and requirements, and systems of internal controls
• Professional accounting or finance qualification (CPA, Chartered Accountant, ACCA, CFA, or equivalent).
• Previous experience serving on a non-profit or charitable board.

Time Commitment

Committee members are expected to:

• Participation in committee and individual subcommittee activities may require a commitment of 3 to 5 hours per month.
• Attend up to 5 Board meetings a year as required, usually in the first half of the calendar year to prepare for the budget.
• Review meeting materials in advance.
• Participate in occasional strategic planning or budget workshops.

Conflict of Interest

California Government Code Section 1090 prohibits Sierra Club from entering into a contract if one of its members (i.e., a director, volunteer, or employee) is financially interested in the contract.

The Political Reform Act of 1974, as amended, ("PRA") establishes conflict of interest guidelines for elected and appointed officials. Under the PRA, no elected or appointed official (including board and committee members) shall engage in any business or transaction or shall have financial or other personal interest, direct or indirect, which is incompatible with the proper discharge of their official duties or would tend to impair their independence or judgment or action in the performance of such duties.

Each non-Board committee member is to submit a completed conflict of interest form to the Board Treasurer. When there is a doubt as to whether a conflict of interest situation exists, the matter shall be resolved by a vote of the authorized voting members of the Finance and Risk Management Advisory Committee, with the person concerning whose situation the doubt has arisen present, but not voting or, in the case of any staff member, by the Executive Director. The Board of Directors is the final arbiter on all matters involving conflict of interest situations.

Standard of Conduct

Volunteers have the responsibility to abide by Sierra Club Standards of Conduct. Staff, Volunteers, and Members are to be held accountable for their conduct. If any of Sierra Club’s Standards of Conduct are violated, disciplinary action will be taken up to and including termination of employment or committee membership. The affirmative Standards of Conduct apply to Sierra Club interactions with others—including in person, in writing, using digital tools, or on the phone.

Adopted by the Sierra Club Board of Directors September 11, 2021 SR. 2.2.6: Standards of Conduct

Application and Terms

Successful candidates will be nominated and appointed by the Board of Directors.

Director members of the Committee will serve annually, subject to re-appointment by the Board and to the six-year overall term limit for any Board Committee member.

The membership terms for the Committee volunteer members are currently undergoing review by the Board of Directors. Members will be informed of the finalized terms as soon as they are available.

All applicants are required to have been Sierra Club members continuously for one year prior to application.

Applications are accepted and regularly reviewed by the Committee, and nominations are brought to the Board of Directors.