Nonprofits rely on a well-functioning board of directors to fulfill their mission. They are seeking individuals with a passion for their mission and have connections to the people they serve, and have experience in overseeing business affairs at a certain level.
Professionals from all kinds of companies and organizations sit on boards that are non-profit. It’s a great way to build your network and develop new skills and have a positive effect on the community.
According to an Korngold study, 78% of board members reported that their participation on a non-profit board had helped them gain an understanding of the perspectives and opinions different from their own. This is especially true in the context of a nonprofit board, where decisions are made with limited resources, and the board has to make sound financial management decisions.
Nonprofit board members nonprofit board members have many legal responsibilities and obligations that include the Duty of Care as well as the duty of loyalty. Board members must be aware of conflicts and should not abuse their positions by making use of funds donated by nonprofit organizations for personal gain. For example, if the board is deciding on an increase in the salary of the executive director and you own the director’s business it is your responsibility to abstain from voting on the matter due to a conflict of interest.
Many non-profit organizations also have permanent (sometimes referred to as “standing”) committees which deal with ongoing issues or other specific issues that arise. These committees are comprised of board members who have to disclose any conflicts of interests to the other board members.