A nonprofit board is a group comprised of volunteers https://databoardroom.com/the-relationship-between-the-board-ceo-and-staff/ who make sure that the charitable organization operates in accordance with its mission. The responsibilities of the board include adopting sound ethical, legal and ethical governance and financial management policies as well as monitoring the nonprofit’s operations. It is also responsible to secure and monitor the organization’s resources.
A board must know what it can do and not perform in order to fulfill its responsibilities. The media, federal and state agencies and donors are putting more pressure on boards of nonprofit organizations. Those that do not comply could be subject to fines or even personal liability. There are many strategies a nonprofit can use to ensure that its board members are aware of their responsibilities.
The board members of nonprofit organizations are accountable to create sensible plans that meet the vision of the organization as well as community needs. This requires foresight and insight. Imagine yourself up in the crow’s nest in the horizon, looking for indications of rainbows and storms alike. This is especially crucial in times of crisis such as when a significant funding source is lost, a top leader passes away or quits or is promoted to prominence or board members are at odds with one and the other.
The board also has to recruit new members. It is the responsibility of all members to educate those who join the board. The board must also approve the hiring of an executive director and determine their compensation. The board is responsible for reviewing the budget of the organization and making sure it operates within its financial means. In addition, they are responsible for approving all fundraising activities.