Nonprofit boards have the ability to take on multiple responsibility. They can act as the legal governing body for the organization, make sure that it operates in accordance with local and state law, improve internal and external operations, and maintain accountability for financial decisions. A nonprofit board needs members with a variety of backgrounds and skills to perform the diverse responsibilities.
Board members can also be responsible to raise funds for the charity. This may involve reaching out to their own networks of potential donors or the nonprofit’s list of past donors to continue soliciting contributions. It may seem awkward at first but it is an excellent way to increase your fundraising skills.
In addition, the board might appoint committees to focus on particular responsibilities such as fundraising and budget management. Often, the chairperson serves as the main liaison with the executive director. The treasurer must be well-versed in the accounting and bookkeeping aspects of the organization and readily available to provide advice and information to help make sound financial decisions. The secretary records accurate and detailed meeting minutes.
Nonprofit board members are also accountable for approving and reviewing all tax documents of the organization, including the IRS Form 990, before they are filed each year. They must be familiar with all tax regulations and rules for the organization. The board could also be required to read and approve contracts, agreements and other documents pertaining to the mission of the organization.