Non-profit organizations rely on a highly functioning Board of Directors to meet their mission. They are seeking people who are passionate about their mission, are connected with the people they serve and have experience in managing business affairs at some point.
Professionals from all types of businesses www.workboardroom.com/legal-responsibilities-of-nonprofit-board-members/ and organizations are on boards that are non-profit. It’s a great opportunity to expand your network, gain new skills, and make a positive contribution to the community.
According to a Korngold survey 78% of board members reported that being on a nonprofit board led them to more respect for the opinions and perspectives that are not their own. This is especially important in the non-profit board environment, where decisions are made with limited resources and the board is required to make sound financial management decisions.
Nonprofit board members are subject to a variety of legal obligations and responsibilities such as the Duty of Care and the Duty of Loyalty. Board members must stay clear of conflicts and not abuse their positions by using funds donated by nonprofit organizations for personal gain. For example, if the board is deciding on an increase in salary for the executive director, and you own the director’s company it is your responsibility to abstain from voting on the matter because of conflicts of interest.
Many nonprofits also have permanent (sometimes called “standing”) committees which deal with current issues or other special issues that arise. These committees are staffed with board members who have to disclose any conflicts of interests to other board members.