The Duties of a Nonprofit Board
A nonprofit board is comprised of people who help the charity reach its objectives, carry out its mission, and develop a sustainable business. A well-functioning board of nonprofits has a wide range of expertise and experience to guide the organization’s direction and to build community support. It also represents the interests of stakeholders.
Nonprofit boards are accountable for both short-term and long-term strategic planning, in conjunction with staff members who are key to the organization. This includes developing realistic plans that are aligned with the organization’s mission as well as community needs.
Often, nonprofits recruit individuals who have a lot of experience and are successful in philanthropy or business to be on the board. They are expected to use their professional network and wealth to help the nonprofit generate financial support and meet fundraising objectives.
Another major duty of a non-profit board is to monitor the company’s finances and ensure that it is in compliance with all financial regulations. This involves reviewing budgets, authorizing expenditures, and overseeing fundraising initiatives. The board also has to be familiar with and comprehend the organization’s financial history.
The board of a nonprofit is also accountable for making sure that the organization is in compliance with legal requirements. This includes IRS guidelines and state law. The board should also be aware of and be able to resolve any conflicts of interests that may arise within the company.
The board of directors for a nonprofit should ensure that the executive director is functioning efficiently, and oversee and evaluation of their performance. The board is also accountable for determining the compensation of the executive director.