Nonprofit boards are able to assume many different responsibility. They can act as the legal governing board of the organization. They can also ensure that the organization is in accordance with the laws of state and local governments in addition to improving the organization’s exterior and internal operations, and also ensure financial accountability. The wide range of these duties usually requires that a non-profit board has members with diverse backgrounds and appropriate knowledge.
Board members are also accountable for fundraising for the organization. This could include reaching out to their own networks of potential donors or the list of past donors to solicit contributions. While it may feel awkward at first, it is the perfect way to learn and improve your fundraising skills.
The board can also establish committees to handle specific tasks, for example, budget management and fundraising. Typically, the chairperson acts as the primary liaison to the executive director while the treasurer must be well-versed in all aspects of accounting and bookkeeping of the non-profit and be available to provide information and advice to help make sound financial decisions. The secretary should keep exact and precise minutes of meetings.
The members of the board of directors of nonprofit organizations are also responsible to review all tax documents like the IRS Forms for 990 before they are submitted every year. They should be aware of all the tax regulations and rules that are applicable to the organization. The board could also be required review https://twoboardroom.com/the-relationship-between-the-ceo-and-the-board-of-directors/ and sign contracts, agreements and other documents pertaining to the mission of the organization.