Nonprofit boards play an important role in the success of your business. They are responsible for financial oversight, ensuring that nonprofits have enough resources to reach their goals and also ensuring that they adhere to the legal framework. They also play a role in fundraising initiatives. Board members are also required by law to treat the assets of the nonprofit as if it were their own. This means that they should not make decisions based on the desire to gain or benefit from favoritism and must be open in their dealings with the organisation.
Nonprofits should seek out board members who meet the following characteristics:
Passion Board members should be passionate about your nonprofit’s mission and share an urgency to take action. If your board isn’t passionate then it will struggle to achieve productivity.
Commitment: A successful non-profit requires the commitment of its volunteers and staff. Additionally your board should be prepared to put in time, money and effort.
Skills: A successful board of directors will possess abilities in areas such as governance, strategic planning, and oversight of the organization. It should also be able to identify potential and recruit needed people for leadership positions.
All employees of a non-profit must adhere to a conflict-of-interest policy. Infractions could result in penalties from the IRS and state-level “Sunshine Laws.” This is a crucial issue, and it’s why many nonprofits require their board members to sign a conflict of interest agreement.
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