Board members of nonprofits must be able to carry out various duties. The most important are establishing management and governance policies that ensure the sustainability of a nonprofit as well as providing financial oversight. They also create strategic plans and supervise the implementation of those plans. They may be personally accountable for nonprofit obligations in certain circumstances, such as failure to pay withholding taxes on wages of employees.
In many instances the board will employ a staff person to manage the company. The executive director, also known as the CEO, is accountable for recruiting, training and supervising the board as well as staff. They could also be involved in fundraising activities. The job of the executive director can be a significant obstacle for a newly founded nonprofit and it’s recommended that an experienced board member mentor the first ED/CEO, so they will know how to collaborate with the board to achieve success.
Board members must also ensure that the charity has sufficient funds to implement its programs. This could https://kidsboardroom.com/goal-tracking-apps-for-board-members/ include making personal donations, organizing fundraisers, and other philanthropic events. The Board should have a clear knowledge of how nonprofit’s financial statements are reported, and they should ensure there is a clear process in place to guard against fraud and embezzlement. They should also be able to make a budget and approve it, and they are responsible for determining how close the actual spending matches the budget.