The members of the board of directors of nonprofit organizations must be prepared to handle a wide variety of duties. The most important is to establish governance and management policies that help ensure the sustainability of a non-profit as well as providing financial oversight. They also create strategic plans and oversee the implementation of the plans. They can be held personally accountable for the nonprofit’s liabilities under limited circumstances, such as failure to pay withholding taxes on the wages of employees.
In a majority of cases the board hires an employee to run the organization. This is referred to as an executive director or CEO and it is their responsibility to recruit, train and supervise the staff and board members. They can also be involved in fundraising activities. It is crucial to guide the executive director/CEO who is the first to guide them on how to work in conjunction with the board.
Board members must also ensure that the organization has sufficient funds to implement its programs. This could include personal contributions, fundraising events and other charitable efforts. The Board should have a clear understanding of how a nonprofit’s financial statements are reported, and they must ensure that there is a clear process in place to avoid embezzlement and fraud. They should also be able to develop and approve an annual budget, and they must monitor how click resources https://idealmanagementonline.com/board-portals-comparison-2024-evaluating-features-and-benefits/ closely the actual expenditures correspond to the budget.