A nonprofit board is a set of of volunteers who ensure that a charitable organization functions in accordance with its purpose. The board’s responsibilities include the creation of solid ethical, legal and ethical guidelines for governance as well as financial management practices, as well providing oversight for the nonprofit’s operation. The board is also responsible for ensuring the organization’s finances.
A board should know what it is permitted to do and what it cannot do to meet its duties. The increasing scrutiny of donors, state and federal agencies, and the media is urging greater vigilance of boards that are nonprofit. Those that do not comply may face fines and even personal liability. There are a variety of strategies an organization can employ to ensure that its board members are aware of their responsibilities.
Board members of non-profit organizations are responsible for establishing sensible plans that meet the vision of the organization as well as community needs. This requires a lot of foresight and a keen eye. Imagine yourself in a crow’s nest, watching for storms and rainbows. This is especially relevant during times of stress, such as when a major funding source is lost, a key executive leaves or is fired or is promoted to prominence or board members are at odds with one the other.
The board must also recruit new members. It is the responsibility for all members to provide orientation new members to the board. The board must also approve the appointment of an executive director, and decide the compensation. The board is responsible for reviewing the budget of the organization and making sure that it is operating within its financial means. They are also responsible for the approval of any fundraising activity.