Nonprofit Boards and Their Responsibilities

Nonprofit boards are groups of individuals who work together to oversee an organization. They do this by holding regular meetings, with the goal of setting strategy and direction, ensuring resources, and providing oversight. Boards can also engage in charitable activities, for example, fundraising, and offering professional services at no cost to the non-profit.

Most states have a minimum of board members a non-profit organization must have. Some even require that the board is diverse to keep their tax-exempt status. The requirement to be diverse shouldn’t be a political game. It should be based on fact that a person has no conflicts of interests or any other reason to prevent them from serving on a board.

The Board’s responsibilities include appointing committees, choosing the CEO and remuneration, establishing the budget and managing legal matters, examining and approving financial reports, determining the pay of senior staff members and developing the strategy. Boards are also able to represent the organization in public forums, such as discussions with donors, government agencies and the media.

In addition to appointing committees, selecting and remuneration the CEO and creating the budget, boards also have to perform due diligence on potential donors, insuring that they are legit and that they can be relied upon to give to the charity. They must also approve, review and keep good minutes for every meeting. A functioning Board will take its duties seriously and work together to achieve success.