The board members of nonprofits need to be prepared to perform various duties. The most important responsibilities are to set governance and management guidelines that help ensure the sustainability of a nonprofit and to provide financial oversight. They also develop strategic plans and oversee the implementation of the plans. In certain circumstances, they can be held personally liable for nonprofit obligations. For instance in the event that they fail to pay withholding tax on employee wages.
In most cases the board will employ someone to run the organization. The executive director, or CEO, is responsible for bringing in, training and supervising the board and staff. They could also be involved in fundraising activities. It is important to mentor the executive director/CEO in the beginning to help them understand how to work together with the board.
Board members must make sure that the institution has sufficient funds to carry out its programs. This may involve making personal donations, organizing fundraisers and other philanthropic activities. The Board should have a clear knowledge of how nonprofit’s financial statements are presented and should ensure there is a clear system in place to stop embezzlement and fraud. They should also know how to create an annual budget and then approve it, and they are accountable for ensuring how closely the actual expenditure https://kidsboardroom.com/goal-tracking-apps-for-board-members/ corresponds to the budget.