Nonprofit boards play an essential part in the success of your business. They are accountable for overseeing finances as well as ensuring that the organization has enough resources to reach its goals, as well as ensuring that the organization is operating within the rules of law. They also play a crucial role in fundraising. Board members also have a fiduciary duty to treat the assets of the non-profit as if it were their own. They must not make decisions for personal gain or to favor the organization.
Nonprofits should find board members with the following characteristics:
Passion: Board members should be enthusiastic about the mission of your non-profit and feel a the need to act. If your board doesn’t have this, it is likely to struggle to achieve its goals.
Engagement: To be successful an organization that is non-profit requires the commitment of its staff and volunteers. Your board should be prepared to put in time, money, and energy.
Skills: A reputable board of directors will have the ability to handle areas like governance as well as strategic planning and oversight of organizations. It must also be able to identify potential and recruit necessary people for leadership roles.
A nonprofit should have a policy regarding conflicts of interest that all of its members must adhere to it. Failure to comply with this policy could lead to penalties and fines from the IRS or the state-level “Sunshine Laws.” It is because of this that many nonprofits require their board members to sign agreements on conflict of interest.