The Nonprofit Boards Role

Nonprofit boards play a critical function in any organization. They assist in governing, promoting and oversee the nonprofit’s vision mission, goals, and values. They also make decisions that will ensure the long-term viability of the organization. This includes the obligation of the board to protect the organization from financial ruin and ensuring that the public can trust the organization.

Another crucial task that nonprofit boards are responsible for is overseeing legal compliance. This involves ensuring that the nonprofit adheres to local or state laws as well as federal laws. It also includes the submission and renewal of paperwork to appropriate government agencies (in the US that is the IRS).

The board has the responsibility to establish policies that guide the way in which the organization functions. This covers a variety of things such as the way employees are managed and how donor/supporter information is handled, and fundraising activities.

In addition to creating policies and procedures, the board is also responsible for creating and adhering to budgets. This includes establishing short- and long-term strategic plans for the www.twoboardroom.com/nonprofit-boards-role-in-human-resource-management/ organization in collaboration with the Executive Director, his full staff, and other key stakeholders.

It is essential that all board members understand their duties and responsibilities for the organization to succeed. Without a solid understanding, your nonprofit is open to being a victim of micromanagement and poor management. This is why it’s essential to train new Board members on the duties of a nonprofit board before they are appointed.