As the member of a nonprofit board you are responsible for providing financial and legal oversight. These duties ensure the organization operates within its means and is in compliance with local laws, state laws, and federal regulations. Your obligations also include putting the interests of the organization over your own, and it is your responsibility to report any conflicts of interests.
Nonprofit boards provide direction to non-profits by aiding in their culture, strategic focus, effectiveness, and financial sustainability. They act as ambassadors for the mission and objectives of the organization.
A nonprofit’s mission should be clearly communicated to its volunteers, staff supporters, constituents, and staff, and that communication is only possible through advocacy. A passionate, devoted board will be more likely to remain engaged and will help the organization grow.
The board is also responsible for setting and adhering to an annual budget, as well as adopting policies to guide the management of the organization’s employees and donors. The trust of the public in the organization is essential to its success.
Nonprofit boards are also responsible for overseeing a chief executive, who is ultimately accountable for the day-to-day operations of the organisation. In smaller nonprofits it is possible that volunteer directors also serve as employees, but this model can quickly become unsustainable and stop the board from focusing solely on oversight and governance. To be more efficient, the board should delegate its responsibility to committees, and these committees should report to the board in general.