Nonprofit boards are groups composed of individuals who work to oversee the organisation. They do this by holding regular meetings, with the aim of establishing strategy and www.pleaseboard.com/10-cybersecurity-questions-that-boards-need-to-ask/ direction, managing resources and oversight. Boards can also participate in philanthropic activities such as fundraising and providing professional services free of charge to the nonprofit.
Most states set a minimum number of board members a nonprofit has to have, and some require that boards be diverse in order to keep their tax-exempt status. The requirement for diversity shouldn’t be a political game. It should be based on the fact that a person has no conflicts of interest or any other reason to stop them from serving on the board.
The Board’s responsibilities includes appointing committees, deciding on and reimbursing CEOs, creating the budget, supervising legal issues, examining and the approval of financial reports, determining the compensation for senior staff and establishing a strategy plan. Boards also help represent the company in the community and in meetings with government agencies, donors and media.
In addition to appointing committees and selecting and compensating the CEO and creating the budget, boards must perform due diligence on potential donors, insuring that they are legitimate and can be trusted for donations to the charity. They should also scrutinize, approve and maintain good minutes of each meeting. A well-functioning Board will take its responsibilities very seriously and work together to ensure success.