Nonprofit Boards and Their Responsibilities

Nonprofit boards are teams of people who work together to govern the organisation. Regular meetings are held to establish guidelines, allocate resources and provide oversight. Boards may also engage in philanthropic initiatives, such as fundraising and providing pro bono professional services to the nonprofit.

There are many states that have a minimum of board members a nonprofit organization must have. Some even require that the board is diverse to maintain their tax-exempt status. The requirement for diversity isn’t designed to be a tool for political manipulation, though: Diversity should be based on having no conflicts of interest or any other reason that would disqualify an individual from serving on a board of a non-profit organization.

The Board’s responsibilities include appointing the committees, deciding on the CEO and remuneration for his services, establishing the budget, overseeing legal matters, reviewing and approving financial reports determining the compensation of the senior staff and drafting strategies. Boards also assist in representing the organization in the public and in discussions with government agencies, donors and media.

Boards are not just required to appoint committees, select and compensate the CEO, and decide on the budget, but they must also conduct due diligence on potential donors to ensure they are trustworthy and can be relied upon to donate to nonprofits. They should also approve, review and record good minutes for each meeting. A functioning board will take its responsibilities seriously and work as a team to achieve success.

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