Nonprofit boards are crucial to the success of any organization. They are accountable for overseeing finances, ensuring that nonprofits have sufficient resources to meet their objectives, and ensuring they operate within legal guidelines. They also play a crucial role in fundraising. Additionally, board members have a fiduciary duty to treat the organization’s assets as when they were their own. They must not make decisions for personal gain or to favor the organization.
Nonprofits should look for board members with these traits:
Passion Board members should be passionate about your non-profit’s mission and share the urgency to take action. If your board doesn’t have this, it will struggle to be effective.
Commitment: To be successful the nonprofit organization requires the commitment of its volunteers and staff. In addition your board needs to be prepared to invest time, energy and money.
Skills: A competent board of directors will have the ability to handle areas like governance as well as strategic planning and oversight of organizational structures. It must also be able to find talent and recruit the required people to fill leadership positions.
Every member of a nonprofit must adhere to a conflict-of-interest policy. Infractions to the policy could result in penalties and fines from the IRS or the state-level “Sunshine Laws.” It is the reason why many nonprofits require board members to sign an agreement regarding conflict of interest.