Nonprofit boards play a critical role in the work of an organization. They are responsible for governing, promote, and oversee the vision, mission goals and values of a nonprofit. They also have to make decisions that ensure the long-term viability of the organization. This includes the duty of the board to protect the organization from financial ruin and ensuring that the public has confidence in the organisation.
Another important job that falls on nonprofit boards is overseeing legal compliance. This means making sure that state, local, or federal laws are adhered to by the non-profit. This includes submitting and renewing forms to the appropriate government agencies. In the US, that is the IRS.
The board is accountable for establishing the guidelines that guide how the nonprofit functions. This covers a variety of things, including the way that employees are managed, how donor/supporter information is handled and how fundraising events are conducted.
In addition to creating policies, the board is responsible for establishing and adhering to budgets. This includes establishing long- and short-term strategic plans with the help of the executive director and the entire staff and other key stakeholders.
It’s vital that board members are aware of their duties and responsibilities to ensure the success of the organization. If you don’t have a clear understanding of your board’s responsibilities, your nonprofit could be vulnerable to micromanagement and mismanagement. This is why it’s essential to inform new Board members about the duties of a nonprofit nonprofit boards role board before they are appointed.