The Nonprofit Boards Role
Nonprofit boards play an essential part in the functioning of an organization. They assist in governing and promote the mission, vision and values of a non-profit. They also make decisions that will ensure the sustainability of the organization. This includes the duty of the board to protect the company from financial ruin and ensure that the public is able to trust the organization.
Another important responsibility that nonprofit boards are responsible for is oversight of legality. This means making sure that local, state or federal laws are adhered to by the non-profit. This involves submitting and renewing documents to the appropriate government agencies. In the US, that would be the IRS.
The board is responsible for establishing guidelines that govern how the organization operates. This includes many things that include the way employees are managed as well as how donor/supporter data is handled, as well as fundraising activities.
The board is also responsible for the creation of budgets and adherence to them. This includes setting shortand long-term plans for the organization, in conjunction with the Executive Director, the entire staff, and key stakeholders.
To ensure the success of an organization it is essential that every board member understands their roles and responsibilities. If you don’t have a clear understanding of your board’s responsibilities, your nonprofit is vulnerable to micromanagement and mismanagement. This is why it’s essential to train new Board members about the duties of a board of directors before they join.