Nonprofit boards are groups of people who help control an organization. Regular meetings are held to set strategy, ensure resources, and provide oversight. Boards may also engage in philanthropic activities, including fundraising and providing pro bono professional services to the nonprofit.
The majority of states have the minimum number of board members that a nonprofit must have, and some require that the boards be diverse to maintain their tax-exempt status. The requirement for diversity shouldn’t be a game of political will. It should be based on the assumption that a person does not have no conflicts of interest or other reason to disqualify them from serving on the board.
The board’s responsibility is to appoint the committees, selecting the CEO and remuneration for his services, establishing the budget, managing legal matters, examining and approving financial reports, making decisions about the compensation of senior staff and creating strategies. Boards also represent an organization within the community, and in discussions with donors, government agencies and the media.
In addition to appointing committees, selecting and remunerating the CEO, and making the budget, boards must perform due diligence on potential donors, making sure that they are legitimate and can be relied upon to contribute to the non-profit. They should also approve, review and maintain a record of every meeting. A well-functioning board will take its responsibilities seriously and will work together as a unit to succeed.