Nonprofit Boards and Their Responsibilities

Nonprofit boards are groups of people who work together to govern the organization. Regular meetings are held to set the strategy, manage resources, and ensure oversight. Boards may also engage in philanthropic activities such as fundraising and offering professional services for free to the nonprofit.

The majority of states have a minimum number of board members that a nonprofit organization must have. Some states even require that the board is diverse to keep their tax-exempt status. The diversity requirement shouldn’t be an election-related issue. It must be based on the assumption that a person does not have no conflicts of interests or other reasons that would prevent them from being on the board.

The Board’s responsibilities include appointing the committees, selecting the CEO and paying him as well as establishing the budget and overseeing legal issues, reviewing and approving financial reports setting the salary of the top staff members and establishing a strategy. Boards can also represent an organization in the community, in discussions with donors, government agencies and the media.

In addition to appointing committees and selecting and compensating the CEO and creating the budget, boards also have to conduct due diligence on potential donors, making sure that they are legit and can be trusted for donations to the charity. They must also examine, approve and record good minutes for each meeting. A functioning Board will take its responsibilities seriously and work together in order to achieve success.

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