Nonprofits depend on a functional board of directors to carry out their goal. They are looking for individuals with a passion for their mission, who have connections to the people they serve, and who have experience managing business affairs at some level.
Professionals from all kinds of businesses and organizations are members of nonprofit boards. It’s a great opportunity to build your network, acquire new skills and make a positive impact on the community.
According to a Korngold study, 78% board members claimed that their time as a member of a non-profit’s board helped them gain an understanding of the views and opinions that were different from their own. This is especially important in the context of a nonprofit board, where decisions are made with limited resources, and the board must make sound financial management decisions.
Nonprofit board members have many legal responsibilities and obligations which include the Duty of Care as well as the duty of loyalty. Board members must be aware of conflicts and not abuse their positions by making use of nonprofit money for personal gain. If you are the owner of the company of the executive director and the board has a vote to increase the salary for the director, you must abstain because you have a conflict.
In addition, many nonprofits have permanent (sometimes called « standing ») committees to manage ongoing issues as well as other specific needs as they arise. These committees are run by board members who must reveal any potential conflicts of interest to the other board members.