Nonprofit boards carry a variety of obligations. They can be the legal governing body of the organization, and ensure that the organization is operating in compliance with the laws of the state and local authorities, improve internal and external operations, and hold accountable for financial decisions. A www.twoboardroom.com/nonprofit-boards-role-in-human-resource-management/ nonprofit board must include members with diverse backgrounds and expertise to fulfill these diverse duties.

Board members also may be accountable to raise funds for the charity. This can include making contact with their networks of potential donors and/or the list of past donors to ask for donations. It can be awkward at first but it is a great way to improve your fundraising skills.

The board can also establish committees to handle specific tasks, such as fundraising and budget management. The chairperson is usually the direct contact with the executive director, while the treasurer must be acquainted with all aspects of bookkeeping and financial accounting for the non-profit. They should be available to offer information and advice to help make informed financial decisions. The secretary keeps accurate and precise minutes of meetings.

The members of the board of directors of nonprofit organizations are also accountable for reviewing all organizational tax documents including the IRS Forms 990 prior to when they are filed each year. This means they must be familiar with the various tax regulations and requirements of the organization. The board may also be required to review and sign agreements, contracts, and other documents related to the mission of the company.