Nonprofit boards play a critical role in the success of your business. They are responsible for the oversight of finances, ensuring that nonprofits have enough resources to achieve their goals, and ensuring they operate within legal regulations. They also play an important role in fundraising efforts. Board members are bound by a fiduciary obligation to treat the nonprofit’s assets as such as if they were their own. They should not make decisions for personal gain or to favor the nonprofit.
Nonprofits should seek out board members who meet the following characteristics:
Passion: Board members must be committed to the goals of your organization and have a an urgency to take action. If your board lacks this then it will struggle to achieve productivity.
Commitment: To be successful an organization that is non-profit requires the commitment of its staff and volunteers. Your board should also be prepared to put in time and money as well as energy.
Skills: A reputable board of directors will have abilities in areas such as governance as well as strategic planning and organizational oversight. It should be able identify the best talent and attract people for leadership positions.
All employees of a nonprofit must adhere to a conflict-of interest policy. Failure to comply with this policy could result in fines and penalties from the IRS or state-level “Sunshine Laws.” It is the reason many nonprofits require board members to sign agreements on conflicts of interest.