Board members of non-profit organizations must be prepared to handle many different duties. The most important is establishing governance and management policies that support a nonprofit’s sustainability, and providing financial oversight. They also formulate strategic plans and oversee the implementation of these plans. They can be held personally liable https://kidsboardroom.com/goal-tracking-apps-for-board-members/ for any nonprofit liability under limited circumstances like inability to pay withholding tax on wages of employees.
In a majority of cases the board will employ an employee to manage the organization. The executive director, also known as the CEO, is responsible for recruiting, training and supervising the board and staff. They might also be involved in fundraising activities. It is crucial to guide the first executive director/CEO to assist them in understanding how to work with the board.
Board members should make sure that the institution is able to fund its programs. This can include personal donations, fundraising events and other philanthropic endeavors. The Board must be knowledgeable of how nonprofits report their financial statements and ensure that a clear and efficient system is in place to prevent fraud or embezzlement. They should also be able make and approve an annual budget and they must monitor how closely the actual expenditures are in line with the budget.
