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A nonprofit board is composed of volunteers who ensure that the charity’s mission is fulfilled. The responsibilities of the board include adopting sound ethical, legal and ethical policies for financial management and governance in addition to giving oversight to the nonprofit’s operations. The board is also accountable for ensuring the organization’s finances.

To fulfill its responsibilities A board must know what it is able to and cannot do. Increased scrutiny from donors, federal and state agencies, and the media are calling for greater vigilance of nonprofit boards. Anyone who does not adhere could face fines and personal liability. There are a myriad of strategies that a nonprofit can use to ensure that its board members know their obligations.

Board members of nonprofit organizations are accountable for drafting real-world plans that reflect the mission of the organization and its community needs. This requires a lot of insight and foresight. Think of it as being up in the crow’s nest and scanning the sky for signs of rainbows and storms alike. This is particularly important in times of crisis such as when a significant funding source is lost, a top leader passes away or quits, a rival rises to prominence, or board members are at odds with one with one another.

The board also needs to recruit new members. It is the responsibility of all members to educate those who join the board. The board must also approve the appointment of an executive director and determine the compensation. The board is accountable for examining the organization’s budget and ensuring that it operates within its means. Additionally, they are responsible for approving all fundraising activities.