What to Do When a Board Member Changes
Introduction
Section titled “Introduction”Board turnover is normal. But a poorly managed transition creates financial gaps, access problems, and compliance issues. Here’s how to handle it cleanly.
When a Member Leaves
Section titled “When a Member Leaves”Move quickly on access. Immediately revoke their access to any financial systems, bank accounts, and document storage. Collect any physical keys, fobs, or signing authority documentation.
Update the signing authority on file with your bank — this requires a board resolution and a visit to the branch. Document everything in your board meeting minutes.
When a New Member Joins
Section titled “When a New Member Joins”Pass a board resolution formally appointing them before giving them any access or authority. Grant access to financial systems at the appropriate permission level — not everyone needs to see everything.
Brief them on the current financial position: operating budget status, reserve fund balance, outstanding payables, and any issues in progress.
The Treasurer Handoff
Section titled “The Treasurer Handoff”If the outgoing board member was the treasurer, do a formal handoff. Review outstanding payables, the reserve fund status, any ongoing audits or disputes, and the current budget position. Walk them through it.
Why Permission Management Matters
Section titled “Why Permission Management Matters”A financial system with proper role-based permissions makes board transitions significantly cleaner. You can remove one person’s access and add another’s without disrupting anything else. Every action is logged.
Disclaimer: For general informational purposes only. Not legal, financial, accounting, or tax advice.