As the member of a nonprofit board, you are accountable for providing financial and legal oversight. These responsibilities ensure that the nonprofit is operating within its budget and is in compliance with local laws, state laws and federal regulations. You must also consider the organization’s interests above your own. It is your obligation to disclose any conflicts of interest.
Nonprofit boards provide guidance to non-profits by contributing to their culture, strategic focus, effectiveness, and financial sustainability. They also act as advocates and ambassadors to promote the work of the organization.
The mission of a nonprofit should be clearly communicated to its volunteers, staff as well as supporters and constituents and this communication is only possible through advocacy. A committed, passionate board will https://twoboardroom.com/the-relationship-between-the-ceo-and-the-board-of-directors/ be more likely to remain active and will help the organization grow.
The board is also accountable for establishing and adhering to an annual budget, as well as setting up policies that govern the management of the organization’s employees and donors. It is essential to the nonprofit’s success that the public trusts that funds are being used properly and in service of the stated goals of the organization.
Nonprofit boards must also oversee a chief executive officer, who is the ultimate authority of running the day-today operations for the non-profit. In smaller nonprofits, it is possible for directors who volunteer to also serve as staff, but this could soon become an unsustainable arrangement that stops the board from focussing on oversight and governance. To improve efficiency the board should delegate responsibility to committees, and these committees should report to the board in general.