Nonprofit Board of Directors

Non-profit organizations rely on a highly functioning Board of Directors to fulfill their goals. They are seeking individuals who are committed to the mission, who have connections with the people they serve and who have experience overseeing business operations at some level.

Professionals from all kinds of companies and organizations sit on boards of non-profit organizations. It’s a great way to build a network, learn new skills and make a positive impact on the community.

According to an Korngold study, 78% of board members stated that their participation on a non-profit board had helped them gain a better understanding of views and perspectives that are different from their own. This is especially true when it comes to the board of nonprofit organizations where decisions are made with limited resources and the board is required to make prudent financial decisions.

Board members of nonprofit organizations have a range of legal responsibilities and obligations, including the Duty of Care and the duty of loyalty. Board members are required to avoid conflicts and not abuse their positions by using funds donated by nonprofit organizations for personal gain. For instance, if your board is voting on an increase in the salary of the executive director and you are the owner of the director’s business it is your responsibility to abstain from voting on the matter because of conflicts of interest.

In addition, many non-profits have permanent (sometimes called “standing”) committees that take care of ongoing issues and other special requirements that arise. These committees are staffed with board members who have to disclose possible conflicts of interest to the other board members.

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