Understand Your Role as a Nonprofit Board Member | The Third ...

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We are currently working with several local nonprofit boards to facilitate their strategic plan. It is an interesting process where the many facets of board beliefs and commitment are revealed.

Nonprofit Boards
Every nonprofit is required to have a board of directors. The IRS requires a minimum of three members, with no upper limit suggested. Since there is no real owner of the organization, the board of directors is responsible for the governance, oversight, and evaluation of their nonprofit. The board acts in good faith at all times to assure the stakeholders are served and that the nonprofit stays on its mission. While for profit board members are sometimes paid, that is not the case in the nonprofit sector. Nonprofit boards must act as (and appear to the community) as unbiased and uninfluenced stewards of the organizations mission.

New nonprofits usually have little knowledge of board requirements or function. When we tell nascent nonprofits them they need three members to start, they will likely list three family members or their best friends. From a transparency perspective, it may not be a good idea if everyone on your board has the same last name! Merely having your friends as your board partners does not ensure their commitment to the cause. Board members should be recruited on their qualifications, not familiarity with the board chair or executive director.

One of the best places to learn about nonprofit boards is at BoardSource. According to BoardsSource, here are the ten most important responsibilities of a nonprofit board:

Ten Basic Responsibilities of Nonprofit Boards

1. Determine the organization's mission and purpose. It is the board's responsibility to create and review a statement of mission and purpose that articulates the organization's goals, means, and primary constituents served.

2. Select the executive director. Boards must reach consensus on the executive director?s responsibilities and undertake a careful search to find the most qualified individual for the position.

3. Provide proper financial oversight. The board must assist in developing the annual budget and ensuring that proper financial controls are in place.

4. Ensure adequate resources. One of the board's foremost responsibilities is to provide adequate resources for the organization to fulfill its mission.

5. Ensure legal and ethical integrity and maintain accountability. The board is ultimately responsible for ensuring adherence to legal standards and ethical norms.

6. Ensure effective organizational planning. Boards must actively participate in an overall planning process and assist in implementing and monitoring the plan's goals.

7. Recruit and orient new board members and assess board performance. All boards have a responsibility to articulate prerequisites for candidates, orient new members, and periodically and comprehensively evaluate its own performance.

8. Enhance the organization's public standing. The board should clearly articulate the organization's mission, accomplishments, and goals to the public, and garner support from the community.

9. Determine, monitor, and strengthen the organization's programs and services. The board's responsibility is to determine which programs are consistent with the organization's mission and to monitor their effectiveness.

10. Support the executive director and assess his or her performance. The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization.

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Our next blog will address the legal roles and responsibilities of a board.

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