Nonprofit Boards and Their Responsibilities

Nonprofit boards are groups of people who work to oversee the organization. Regular meetings are scheduled to establish strategies, establish resources, and oversee the organization. Boards can also participate in charitable activities, for example, fundraising, and offering professional services free of charge to the non-profit.

The majority of states have the minimum number of board members that a nonprofit must have and some even require that boards be diverse to cybersecurity questions maintain their tax-exempt status. The requirement for diversity isn’t designed to be a partisan issue however, it should be based on having no conflicts of interest or other reason that would prevent an individual from serving on a nonprofit board.

The responsibilities of the board include appointing committees, selecting and reimbursing the CEO establishing the budget, overseeing legal issues, reviewing and approving financial reports, determining compensation for senior staff and establishing a strategic plan. Boards may also represent an organization in public forums, such as discussions with donors, government agencies and the media.

In addition to appointing committees and remuneration the CEO and making the budget, boards also have to conduct due diligence on potential donors, making sure that they are genuine and that they can be counted on to donate to the nonprofit. They should also approve, review and record good minutes for each meeting. A functioning Board will take its obligations seriously and work together in order to achieve success.



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