Nonprofit boards are teams of people who work together to manage the organisation. They do this by holding regular meetings with the intention of setting the strategy and direction, managing resources, and providing oversight. Boards can also participate in philanthropic endeavors, such as fundraising and offering professional services for free to the nonprofit.
The majority of states have a minimum number of board members a nonprofit must have, and some even require that the boards be diverse to keep their tax-exempt status. The requirement to be diverse isn’t intended to be a political plaything however, it should be based on the absence of conflicts of interest or other reason that could prevent a person from serving on a board of a non-profit organization.
The board’s duties include appointing committees, choosing the CEO and paying him, establishing the budget and overseeing legal matters, reviewing and approving financial reports, determining the compensation of senior staff members and developing an action plan. Boards also represent an organization within the community, and in discussions with donors, government agencies and the media.
In addition to appointing committees and compensating the CEO and setting the budget, boards also have to conduct due diligence on potential donors, making sure that they are genuine and are able to donate to the nonprofit. They must also review and approve financial reports and keep a good record of every meeting. A well-functioning Board will take its obligations seriously and work together to achieve success.