The Role of the Board of Directors in a Non-Profit Organization

A nonprofit or 501(c)3 organization is governed by a board of directors. In the nonprofit world, board members are volunteers who are not compensated for their services. It is important to choose a diverse group of people with a variety of contacts to help govern a nonprofit.

Guidance

According to BoardSource.org, a nonprofit's board determines and defines the organization's mission, identifying its purpose, goals and target audiences.

Hiring

It is the board's responsibility to hire a director or chief executive and evaluate his performance annually.

Finances

Board members are responsible for fund-raising efforts through personal contributions or making connections with local foundations and businesses. They also are responsible for creating the nonprofit's budget and managing its assets.

Planning

Boards are responsible for strategic planning, including setting goals for long-term projects and capital campaigns.

Promotion

A nonprofit board should help promote the organization in the community wherever possible, highlighting accomplishments, events, programs and fundraisers.

References

• BoardSource.org: Ten Basic Responsibilities of Nonprofit Boards