The role of nonprofit boards is vital to the success of an organization. They assist in governing, promote, and oversee the mission, vision and values of a non-profit. They are also responsible for making decisions that ensure the long-term sustainability of the organization. This includes the board’s duty to protect the organization from financial ruin, and to ensure that the public is able to trust the organization.
Legal oversight is another important task for boards of non-profit organizations. This includes ensuring that state, local, or federal laws are adhered to by the non-profit. This also includes filing and renewing paperwork with appropriate government agencies (in the US this would be the IRS).
The board is responsible for establishing policies that guide how the nonprofit functions. This can include a myriad of things, including the way employees are managed and how donor/supporter information is handled, and fundraising activities.
The board ceo and the board of directors is also responsible for establishing budgets and implementing them. This includes establishing shorter- and longer-term strategic plans with the help of the executive director as well as the entire staff and other key stakeholders.
To ensure the achievement of an organization it is crucial that every board member knows their responsibilities and roles. Without a solid understanding of the role of the board, your nonprofit is vulnerable to being a victim of micromanagement and poor management. This is why it’s vital to inform new Board members on the responsibilities of a non-profit board before they are appointed.