https://twoboardroom.com/the-relationship-between-the-ceo-and-the-board-of-directors/
Nonprofit boards play an essential function in any organization. They help to govern and promote the mission, vision and values of a non-profit. They also have to make decisions that will ensure the sustainability of the organization. This includes the responsibility of the board to protect the company from financial ruin, and to ensure that the public can trust the company.
Legal oversight is another crucial task for boards of non-profit organizations. This involves ensuring that the nonprofit adheres to local federal, state, and local laws. It also includes the submission and renewal of paperwork to appropriate government agencies (in the US, this would be the IRS).
The board of directors is responsible for create policies that will guide the way that the organization operates. This includes a range of things, including the way employees are managed, how donor/supporter information is handled, and how fundraising activities are conducted.
In addition to establishing policies, the board is responsible for creating and adhering to budgets. This includes establishing short- and long-term strategic plans for the organization in conjunction with the Executive Director, all staff, and other key stakeholders.
To ensure the success of a company it is crucial that each member of the board understands their responsibilities and roles. Your nonprofit is susceptible to mismanagement and micromanagement without an understanding of. It is important to educate new Board members about the duties of nonprofit boards before they join.
