Nonprofit Boards and Their Responsibilities

Nonprofit boards are teams of people who work together to run the organization. Regular meetings are held to set the strategy, manage resources, and provide oversight. Boards can also participate in philanthropic activities including fundraising and providing professional services at no cost to the nonprofit.

There are many states that have a minimum of board members a nonprofit organization must have. Some even require the board be diverse to keep their tax-exempt status. The requirement for diversity shouldn’t become a political game. It should be based on the fact that an individual has no conflicts of interests or other reasons to disqualify them from serving on the board.

The board’s responsibility is to appoint the committees, selecting the CEO and paying him, establishing the budget and managing legal matters, examining and approving financial reports, making decisions about the compensation of the top staff members and establishing an action plan. Boards can also represent the organization in the community, including discussions with government agencies, donors and the media.

In addition to appointing committees, deciding and remuneration for the CEO, as well as creating the budget, boards should also perform due diligence on potential donors, making sure that they are legitimate and can be relied upon to give to the charity. They should also review, approve and keep good minutes for each meeting. A functioning board will be committed to its duties and work as a team to achieve success.

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