Nonprofits are dependent on a functioning board of directors to carry out their objectives. They are looking for people who are committed to their mission, are connected with those they serve and have had experience in overseeing business affairs at some point.
Professionals from all sorts of businesses and organizations sit on boards that are non-profit. It is a great way to expand your network and learn new skills and make a difference on the community.
According to an Korngold survey, 78 percent of board members claimed that being on a nonprofit board has given them an appreciation for different views and perspectives different from their own. This is vital in a board environment for nonprofits where decisions have to be made with limited resources, and the board must make smart financial management choices.
The board members of nonprofit organizations have many legal obligations and responsibilities. These include the Duty to Care and the obligation of loyalty. Board members are required to avoid conflicts and must not abuse their positions by using funds from nonprofit organizations to gain personal gain. If you are the owner of the company of the executive director and the board members are voting to increase the amount of money paid to the director, you should vote against because you have a conflict.
In addition, many nonprofits have permanent (sometimes called “standing”) committees that take care of ongoing issues and other specific needs as they arise. These committees are led by board members, who must reveal any potential conflicts of interests to the other board members.