Question

What is the function of a Board for a not for profit?

Answer 1

Non Profit Board Functions:

1. The board of directors, as a governing body, should focus on the organization’s mission, strategy, and goals. They must function, develop policies and procedures in accordance with the mission and goals.

2. The basic legal function of a board member is to exercise reasonable business judgment and do what is in the best interests of the nonprofit and its stakeholders or donors. This responsibility requires board members to put aside their personal interests and opinions when performing board duties and participating in decision-making.

4. In addition, board members should consider the impact of their decisions on the interests of other parties, including the nonprofit’s beneficiaries and employees.

5.  Reviewing the nonprofit’s bylaws, rules and regulations for inconsistencies or inaccuracies. The board must Adhere to legal and ethical standards and norms.

6.  Attend all board meetings, committee meetings and specialized committee meetings – in particular, audit committee meetings.

6. Approving annual budgets and is responsible for ensuring that adequate financial resources are available to the nonprofit organization.

7. The board of directors is ultimately responsible for a nonprofit’s system of internal control. It should set appropriate policies on internal control and seek regular assurance that the system is functioning effectively.

8. Hire and Set compensation for the CEO or Executive Director. This function is important because the Executive Director or CEO has a key role as the primary communicator between the board and management.

9. Fund raising is also the important function of every board member. They should be willing to use their personal or professional networks to grow the non-profit financially.

10. Board should publicly advocate for the non-profit’s mission. This includes public relations and interacting or interviewing with media.

11. Strategic planning is another crucial function of non profit board to achieve organisational goals.