Nonprofit Boards and Their Responsibilities

Nonprofit boards are groups composed of individuals who work to run the organisation. They do this by holding regular meetings, with the aim of setting the strategy and direction, ensuring resources and oversight. Boards are also able to engage in philanthropic activities for example, fundraising, and offering professional services free of charge to the non-profit.

Most states have visit their website a minimum of board members that a nonprofit organization must have. Some require that the board members be diverse in order to keep their tax-exempt status. The diversity requirement isn’t meant to be a partisan issue, though: Diversity should be based on having no conflicts of interest, or any other reason that could prevent a person from serving on a nonprofit board.

The Board’s responsibilities include appointing the committees, deciding on the CEO and paying him to be paid, setting the budget and managing legal matters, examining and approving financial statements, setting the salary of the senior staff and drafting the strategy. Boards also assist in representing the company in the community and when interacting with government agencies as well as donors and the media.

Boards need to not only create committees, pick and pay the CEO, and establish the budget but also do due diligence on prospective donors to ensure they are trustworthy and can be relied upon to give to charities. They must also review and approve financial reports and keep good minutes of each meeting. A properly functioning board will take its responsibilities seriously and will work together as a team to achieve success.