Not only are funds sometimes wasted on things other than the mission, but it makes the job of raising more funds so much more difficult. While boards are ultimately responsible I think that we all must take responsibility for stewardship because when the organization fails at it, we all pay the price in some way. When that happens, our stewardship is called into question. It has come into question with issues like the cost of fundraising, salaries and perks of executives, and in the worst cases incidents of actual misuse of funds. Some of the criticisms are unfair and unfounded, but I'm afraid some of it rings true.
Good stewardship begins with a clearly stated mission.
The job of the trustees is to see that the organization's work, practices and policies, are all consistent with that mission. Another aspect of stewardship is ongoing assessment of our effectiveness. We in nonprofit work are always cautious around the topic of demonstration of effectiveness. We can't always just count noses or heads. Sometimes an organization initiates contact with a pregnant teenager in an attempt to counsel her, help her complete her high school program, get a job and learn parenting skills.