Nonprofit boards can take on various responsibility. They can act as the legal governing body for the organization, and ensure that it operates in compliance with state and local laws in addition to improving internal and external operations, and hold accountable for financial decisions. The wide range of these duties often require that a nonprofit board comprise of members with a variety of backgrounds and appropriate knowledge.
Board members are also responsible for fundraising. This may include making contact with their networks of potential donors as well as the list of previous donors to continue soliciting donations. While it may feel awkward initially, it’s an an excellent way to develop and sharpen your fundraising skills.
The board may also create committees to handle specific tasks like budget management and fundraising. The chairperson is often the primary contact for the executive director, while the treasurer needs to be familiar with all aspects of bookkeeping and financial accounting for the nonprofit. They must also be readily available to provide advice and information to make sound financial decisions. The secretary must record exact and precise minutes of meetings.
The board members of non-profit organizations are also accountable for reviewing all tax documents including the IRS Forms for 990 before they are filed each year. This requires them to be conversant with the various tax regulations and the requirements of the organization. The board might also be required and sign agreements, contracts, and other documents related to the purpose of the organization.