Nonprofit boards are groups composed of individuals who work to run the organisation. They do this by holding regular meetings, with the aim of setting the strategy and direction, managing resources, and providing oversight. Boards can also participate in philanthropic activities, including fundraising and providing pro bono professional services to the non-profit.
The majority of states have a minimum number of board members a nonprofit organization must have. Some states even require that the board be diverse to maintain their tax-exempt status. The requirement for diversity shouldn’t become a game of political will. It must be based on the fact that an individual has no conflicts of interests or other reason to stop them from serving on the board.
The board’s responsibility is to appoint committees, choosing the CEO and paying him as well as establishing the budget and managing legal matters, examining and approving financial reports, setting the salary of the senior staff and drafting the strategy. Boards also aid in representing the organization in the community and in discussions with government entities, donors and media.
Boards must not only appoint committees, select and pay the CEO, and establish the budget, they must also do due diligence on prospective donors to ensure they are trustworthy and are able for donations to nonprofits. They should also approve, review and keep good minutes for each meeting. A functioning board will take its responsibilities seriously and work as a team to succeed.
www.pleaseboard.com/why-nonprofits-have-boards-and-what-excelling-boards-do/