The role of boards of non-profit organizations is crucial to the overall success of an organization. They help govern, promote and oversee the nonprofit’s vision mission as well as its goals, values, and mission. They also have to make decisions that ensure the sustainability of the organization. The board has a responsibility to safeguard the company from financial ruin and ensure that the public trusts the organization.
Another important task that nonprofit boards have to perform is legal oversight. This means ensuring that state, local or federal laws are followed by the nonprofit. This includes submitting and renewing forms to the appropriate government agencies. In the US, that is the IRS.
The board is accountable to create policies that will guide the way that the organization operates. This can include a myriad of things such as how employees are handled, the way donor/supporter data is handled, as well fundraising activities.
The board is also accountable for creating budgets and adhering them. This includes setting shortand long-term strategies for the organization in conjunction with the Executive Director, his full staff, and other key stakeholders.
To ensure the success of a company, it is vital that every board member knows their roles and responsibilities. If you don’t have a clear understanding of your board’s responsibilities, your nonprofit is vulnerable to a lack of understanding and mismanagement. This is the reason it’s important to teach new Board members about the role of a nonprofit board prior to when they join.
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