Nonprofit boards play an essential role in the work of an organization. They are responsible for governing and promote the vision, mission goals and values of a nonprofit. They are also responsible for making decisions that will ensure the long-term sustainability of the organization. This includes the duty of the board to protect the organization from financial ruin, and to ensure that the public can trust the company.
Another crucial task that nonprofit boards have to perform is oversight in legal matters. This means making sure that state, local or federal laws are adhered to by the nonprofit. It also involves the submission and renewal of paperwork to appropriate government agencies (in the US this would be the IRS).
The board is responsible to create policies that will guide the way in which the organization functions. This includes many things that include how employees are managed, the way donor/supporter data is handled, and fundraising activities.
The board is also accountable in establishing budgets as well as adhering to them. This includes the creation of shorter- and longer-term strategic plans with the help of the executive director and the entire staff and key stakeholders.
It is vital that the board members all understand their roles and responsibilities in order to make sure that the organization is directory successful. Your nonprofit is vulnerable to mismanagement and micromanagement when you don’t have an understanding of. This is why it’s essential to train new Board members on the responsibilities of a nonprofit board before they join.