Nonprofits depend on a functional board of directors to accomplish their goal. They are seeking directors who are enthusiastic about their mission, are connected with those they serve and have experience overseeing the business affairs at one time.
Professionals from all kinds of organizations and businesses sit on boards of non-profit organizations. It’s an excellent opportunity to build your network, learn new skills and make a positive impact on the community.
According to an Korngold survey 78% of board members reported that being on a nonprofit board has given them an appreciation of viewpoints and opinions that were not their own. This is especially relevant in the non-profit board environment, where decisions are made with limited resources, and the board must make prudent financial decisions.
Nonprofit board members are subject to a variety of legal responsibilities and obligations that include the Duty of Care as well as the Duty of Loyalty. Board members https://workboardroom.com/how-to-improve-board-governance/ must stay clear of conflicts and should not abuse their positions by using funds donated by nonprofit organizations for personal gain. For example, if the board is voting on a salary increase for the executive director and you are the owner of the director’s company then you must not participate in voting on the issue because of a conflict of interests.
Many nonprofits also have permanent (sometimes called “standing”) committees that address ongoing issues or other requirements that arise. These committees are led by board members, who must reveal any potential conflicts of interests to the other board members.