The Board of Directors have a fiduciary responsibility to the agency and its donors. All assets need to support the mission of the agency and ensure the donor's intent. All boards should adopt financial policies for financial management.
Policies will help to clarify roles and responsibilities and ensure there isn't a conflict of interest within the agency. Policies can include items such as expense reimbursement, gift policies, who does what with cash being accepted, investment policies, annual review of compensation, and the roles of the CEO vs the Board vs the finance committee.
Here are some examples of policies nonprofits should consider:
Conflict of interest
Bonus structure for staff