A nonprofit board is made up of individuals who help the organization achieve its goals, realize its mission, and develop a sustainable business. A high-functioning nonprofit board combines many skills and experiences to guide the organization, build community support, and represent stakeholders.
In collaboration with key staff, nonprofit boards are responsible for strategic planning. This includes making realistic plans that match the vision of the organization as well as the needs of the community.
Nonprofits typically seek out people who have significant experience in philanthropy or business. They are expected to use their professional networks to help the organization raise money and achieve its fundraising objectives.
The board’s second major job is to monitor the financial affairs of the organization and ensure that it is in compliance with all financial regulations. This includes reviewing budgets and authorizing expenditures, and overseeing fundraiser initiatives. The board must also be familiar with the history of the organization as well as its financial records.
The board of directors for a non-profit is responsible for ensuring that the organisation is compliant with legal requirements including IRS guidelines and state laws. The board must also be aware of and be able to solve any conflicts of interest that might occur within the organization.
The board of a non-profit organization should also ensure that the executive director works effectively and evaluates their performance. Furthermore, it is the responsibility of the board members to determine the compensation of the executive director.