Nonprofit Board of Directors
Nonprofits depend on a high-functioning Board of Directors to meet their goals. They are seeking individuals who are committed to the mission, who have connections to the people they serve and have experience in overseeing business operations at some level.
Professionals from all kinds of businesses and organizations serve on nonprofit boards. It’s a great way to build a network, gain new skills, and contribute to the community.
According to a Korngold study, 78% board members said that their service on a non-profit board had helped them gain a better understanding of views and opinions that were different from their own. This is essential in a nonprofit board environment where decisions have to be made with limited resources and the board must make sound decisions regarding financial management.
Board members of nonprofits have various legal obligations and responsibilities, including the duty to care and the duty of loyalty. This means that board members must stay clear of conflicts of interest and not use their position to benefit by using the funds of the organization for personal gain. For example, if the board is workboardroom.com considering an increase in the salary for the executive director and you control the director’s company, you must abstain from voting on the issue because of a conflict of interest.
In addition, a lot of nonprofits have permanent (sometimes called “standing”) committees that deal with ongoing issues and particular needs that arise. These committees are managed by board members who must report any potential conflicts of interest to other board members.