A nonprofit board is composed of volunteers who work to ensure that the charitable organization’s goals are met. The board’s responsibilities include implementing sound, legal, and ethical governance and financial management policies in addition to overseeing the nonprofit’s activities. The board is also accountable for monitoring and securing the organization’s financials.
A board must be aware of what it is permitted to do and what it cannot do to fulfill its obligations. The media, federal and state agencies and donors are increasing their scrutiny of boards of nonprofit organizations. Those that do not comply could be subject to fines or even personal liability. There are a myriad of strategies that an organization can employ to ensure that the board members are aware of their obligations.
Board members of non-profit organizations are responsible for establishing realistic plans that are in go now line with the organization’s vision and community needs. This requires foresight and understanding. Imagine yourself in the crow’s nest, scanning the horizon for indications of rainbows and storms alike. This is especially crucial during times of stress, like when a major source of funding is lost, a key leader passes away or quits or a rival rises in prominence, or board members are at odds with each and the other.
Each member is accountable for informing new board members. The board must also decide on the hiring of the executive director and decide on their compensation. The board is accountable to review the budget of their organization and ensuring it operates within its means. They are also responsible for approving all fundraising activities.
