Nonprofit Board of Directors

A nonprofit Board of Directors is an important asset to any organization. They not only govern but contribute financially as well to the organization.

Choose a diverse board!

There are many reasons why a person becomes a board member. Some may choose to serve out of a sense of a civic duty to the community. Others may do it because they have a personal interest in the cause or charity while others see the value in providing a charitable service through board membership. Whatever the reason, once a person agrees to be a board member, the individual becomes invested in the nonprofit entity and is seen a vital part of the organization.

The structure of a nonprofit board of directors is quite simple: there are officers and there are members. The offices held by the members are usually assigned according to member's qualifications or specialty. The following are the most common offices held by board members:

• President or Chair oversees meetings, works closely with the nonprofit's executive director, and serves as the board's spokesperson.
• President Elect is the person who will be the next in line for the office of president.
• Treasurer is responsible for financial reporting. They have expertise in finance or accounting and oversees that the budget of the nonprofit. They may also be the one to sign checks for the organization.
• Secretary takes minutes at the meetings.

Most nonprofit board of directors members are volunteers who are not compensated for their service. They decide to devote their time and energy as a part of their service to the organization.

There are many responsibilities when it comes to being a board member. From monitoring the organization to reviewing the executive director, there are many roles that members are involved in. Some responsibilities include:

• Attending board meetings
• Approving budgets and contracts
• Securing sponsorships
• Soliciting donations

In addition, boards have responsibility for the organizations' conduct. There are laws that govern organizations and set standards for boards to follow. In general, boards have the following standards to follow:

• Duty of Care
• Duty of Loyalty
• Duty of Obedience

The board is also responsible for hiring the executive director. This position is the one that provides nonprofit leadership and oversees the daily operations of the organization.

Many boards have various committees. These committees are focused groups who address specific issues. Some common committees include:

• Marketing
• Development
• Finance
• Special Events
• Nominating

Committees may meet as needed or they may decide to have a set date to meet. Some may meet monthly while others feel that a quarterly meeting is sufficient.

There is a process to how people become selected as board members of a nonprofit organization. Existing board members along with the executive director identify potential members who will benefit the organization. These people are identified as ones who will be an asset to a specific area of interest. Diversity is an important consideration when deciding on potential members. A committee usually exists to deal with this process then reports the potential new board members to the rest of the board.

Board members need to be evaluated in order to make sure that they are doing their job. They are responsible for assessing their role and evaluate themselves. They can decide if they need to receive training about their responsibility to the organization. Often they set up a retreat to refresh their roles. When a person first is appointed to the board, they should receive an orientation so they are aware of their responsibilities.

Board Source is a great reference site pertaining to anything regarding Board of Directors. Keeping your board up to date on any new laws or regulations is critical.

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