The Power of the Board

Written By Laura Kandle

Nonprofit boards can arguably make or break a nonprofit organization. But why are they so important?

Nonprofit board members have great power over their nonprofit’s success and sustainability. With that power comes responsibility that is rewarding if done performed with knowledge and care. Perform your board duties well and you may well see the organization thrive and its mission make impactful gains. Ignore the basics and you risk organizational stagnation, if not decline. Good governance is key. But ensuring that you are acting in good faith as a board member does not mean spending all of your free time reading up on every aspect of governance. Instead, make sure that you and your fellow board members are bringing your collective strengths and resources to the table to oversee your nonprofit.

This article covers the basics of a governing board, and the essentials for compliance and success.

The Three Duties

Nonrprofit boards are legally required to perform 3 duties. As a board team, you can do this together. Work smart.

The Duty of Care: know and participate in the nonprofit as a board member with the same care you excersise in your professional and personal life

  • Ensure that your nonprofit is operating in compliance with the law

  • Actively participate in meetings and decision-making (and if you have to miss any meetings, get the minutes and provide input/ask questions as needed)

  • Stay familiar with the organization’s activities and publications

  • Ensure good internal controls and policies are in effect in the organization

  • Review the Executive team

The Duty of Loyalty: act in the interest of the nonprofit

  • Ensure there are no conflicts of interest in your participation; have and sign the nonprofit’s Conflict of Interest policy

The Duty of Obedience: make sure that the nonprofit is in compliance

  • Ensure that your nonprofit is following it’s mission and that funds are dedicated to the execution of that mission

  • Comply with all state and federal laws and regulations

  • Provide copies of filed 990s to the public at least as requested

Resources:

Board Positions and Committees

A well-functioning board has, at a minimum, assigned key positions that ensure it can function efficiently and effectively. These roles are as follows:

Board President

Board Secretary

Board Treasurer

Boards can also have committees that help it function. These include

Executive Committee

Finance Committee

Fundraising Committee

Advisory committees also exist

Board Oversight

Effective board oversight has key qualities: knowledge of responbsibility, and not getting into the weeds

Laura Kandle