The Quick Guide to Nonprofit Board Responsibilities

An effective nonprofit board can help your organization raise more money and make a more meaningful impact on your cause. Understanding your nonprofit board’s roles and responsibilities is key to the success of your mission. To help ensure your board’s effectiveness, take a look at the primary functions of your board, the obligations of its members, the different types of boards, and the roles your board members fill. By taking action and refining your board’s operations, you can maximize the positive impact you have in your community.

• What’s a nonprofit board’s primary function?
• What are the basic obligations of a board member?
• Different types of nonprofit boards
• What are common board roles?
• Nonprofit board member duties
• Nonprofit board best practices

What’s a nonprofit board’s primary function?

Your nonprofit board plays a pivotal role in guiding your organization’s mission and strategy. At its core, your board is responsible for steering your nonprofit towards achieving your goals while ensuring legal and ethical integrity. Your board members help provide oversight and support to your organization’s leadership team, ensuring transparency, accountability, and financial stability.

An effective nonprofit board helps with planning your fundraising strategy, properly allocating resources, and evaluating your strategy’s performance. Your board should also help foster collaboration between board members and staff. This collaboration helps create a unified front that drives your organization forward. 

What are the basic obligations of a board member?

Each board member has a set of fundamental duties that are essential for your board’s ability to operate. These obligations revolve around three core principles:

Care

The duty of care requires your board members to act with competence and diligence. They must stay informed on your organization’s activities and participate in decision-making processes. This involves attending meetings regularly, reviewing reports, and keeping your nonprofit on track. By fulfilling this duty, your board members can make well-informed decisions that benefit the nonprofit.

Loyalty

Board members owe a duty of loyalty to your organization, which means prioritizing your mission’s interests above their own. They must avoid conflicts of interest and disclose any potential conflicts transparently. Upholding this duty strengthens trust within your board and protects your nonprofit’s integrity. It also ensures that all actions taken are in the best interest of your cause.

Obedience

The duty of obedience requires your board members to adhere to your organization’s mission, bylaws, and policies. Board members must also make sure your nonprofit complies with all applicable laws and regulations. This duty reinforces your board’s commitment to upholding your organization’s purpose and ensuring legal and ethical compliance.

Different types of nonprofit boards

Nonprofit boards can operate under various models–each with its own structure and approach. Understanding these models can help your organization choose the best fit for your needs.

Advisory model

Using the advisory model, your board would primarily provide guidance and expertise without direct management responsibilities. This model is suitable for organizations that benefit from specialized knowledge and external perspectives. Advisory boards offer insights that can help you make informed decisions while allowing your team to handle day-to-day operations.

Cooperative governance model

The cooperative governance model emphasizes shared decision-making and collective responsibility. In this model, your board members would work collaboratively with your staff, blurring the lines between governance and management. This model fosters a strong sense of unity and teamwork and can create a more inclusive decision-making process.

Patron governance model

In the patron governance model, your board members would be influential individuals who leverage their resources and networks to support your nonprofit. While they wouldn’t be involved in daily operations, their primary role is fundraising and advocacy. This model is effective for organizations that rely heavily on external funding and public support.

Policy board model

The policy board model focuses on setting policies and strategic direction for your organization so your staff can focus on operational management. Your board members would be responsible for oversight, evaluation, and ensuring your policies align with your mission. This model uses a clear delineation of roles to allow your team to manage day-to-day activities more effectively.

What are common board roles?

Your nonprofit board can have many different roles for members to fill. Each role comes with specific responsibilities that contribute to your board’s overall function. Here are some key nonprofit board roles:

Chair

Your chairperson leads your board and ensures meetings run smoothly and efficiently. They set agendas, facilitate discussions, and provide guidance to your other board members. Your chair also acts as a liaison between your board and your staff to help with aligning goals and communication. Additionally, your chair is often responsible for representing your board at external events and meetings, serving as the public face of your board.

Vice chair

Your vice chair supports your chairperson and steps in when your chair is unavailable to make sure there’s no disruption in the leadership. They often take on special projects and assist with strategic planning to provide a second layer of leadership and expertise. This role helps delineate a clear order to leadership and provides additional support to the board’s functioning. Your vice chair can also mentor new board members, helping them acclimate to their roles and responsibilities. Furthermore, it’s common for vice chair members to transition into chair roles after a set time to ensure continuity for the overall health of the nonprofit board. 

Secretary

Your secretary is responsible for maintaining accurate records of board meetings, including minutes, agendas, and any related documents. They ensure your documentation is organized, accessible, and archived properly, which is vital for historical reference and legal compliance. This role is key for maintaining transparency and accountability within your organization. Your secretary can also manage communication between board members to provide any board-related information in a timely manner.

Treasurer

Your treasurer oversees your nonprofit’s financial health and manages budgets, reviews financial statements, and ensures compliance with financial regulations and policies. They play a critical role in financial planning and risk management by providing your board with insights and recommendations based on financial data. Your treasurer works closely with your organization’s finance team to ensure accurate and up-to-date reporting and financial audits.

Board members

Your general board members contribute to discussions, participate in committees, and support your organization’s initiatives. They bring diverse perspectives, experiences, and expertise to your board to enrich the decision-making process. Board members often advocate for your cause and help build relationships with stakeholders, donors, and your community. They’re also responsible for understanding and upholding your mission and values and can also be involved in various projects or initiatives to help further your organization’s goals.

Nonprofit board member duties

Your board members have different duties to ensure your nonprofit’s success and sustainability. Here are a few key nonprofit board member responsibilities:

Fundraising

Board members help your organization secure funds by leveraging their extensive networks, participating in various fundraising events, and advocating passionately for your nonprofit’s cause. Effective fundraising is vital not only for your organization’s financial stability and growth but also for expanding the reach and impact of the overall nonprofit.

Recruiting new board members

Recruiting new board members is imperative for maintaining an effective board. Your current members should actively identify and vet potential candidates who align with your organization’s values, mission, and strategic needs. A well-rounded board brings diverse skills, backgrounds, and perspectives to help make well-informed decisions. 

Scheduling board meetings

Nonprofit boards need to meet regularly in order to maintain accurate oversight and make strategic decisions. Scheduling a recurring meeting at a monthly or quarterly cadence helps maintain consistent communication and progress. It also allows for timely updates on ongoing projects, annual fundraising updates, and any emerging challenges that your organization may face.

Creating committees

Committees allow your board to focus on specific areas of your organization’s needs, such as finance, governance, program development, and fundraising. Board members should be assigned to committees based on their expertise, interests, and experience for more specialized and efficient work. These committees dive deep into their respective areas, conducting detailed analyses, and developing targeted recommendations for your mission. 

Strategic planning

Board members are deeply involved in strategic planning, setting long-term goals, and defining your organization’s future direction. They should collaborate closely with your team to develop and implement robust strategic plans throughout the year. This process helps your nonprofit remain focused, adaptable, and well-prepared to navigate changes outside of your organization. 

Providing financial management

Effective financial management is crucial for your nonprofit’s sustainability and credibility. Board members should diligently review budgets, monitor financial performance, and ensure strict compliance with financial policies and regulations. By providing guidance on financial strategy, overseeing financial audits, and addressing any financial risks, your board members can ensure your organization is able to maximize your impact. 

Ensuring adequate resources

Board members are responsible for ensuring your nonprofit has the necessary resources to achieve your goals. This includes securing funding through donations, grants, and sponsorships, as well as building strategic partnerships and optimizing resource allocation. By ensuring your organization has adequate resources you’re able to operate more effectively, launch new initiatives, and scale your impact. 

Overseeing legal responsibilities

Board members should help ensure your nonprofit complies with all legal requirements, including federal, state, and local regulations. This includes adhering to regulatory standards, maintaining tax-exempt status, managing risks, and ensuring ethical practices. Legal oversight protects your organization from liabilities, reinforces its credibility, and upholds its reputation. 

Representing your organization

Nonprofit Board members should act as ambassadors for your cause, actively promoting your mission, vision, and values to a wider audience. They should engage with stakeholders and major donors, build and nurture relationships, and enhance your organization’s visibility through community involvement. This helps spread awareness for your nonprofit and boost fundraising opportunities.

Assessing and developing skills

Continuous assessment and development helps your board members remain effective and skilled in their roles. Members should participate in ongoing training sessions, workshops, and evaluations to stay current with best practices in nonprofit management. Skill development initiatives can enhance your board’s capacity to make informed decisions and support your nonprofit’s growth and development. 

Nonprofit board best practices

With so many different nonprofit board responsibilities, it’s important to have a set of best practices to ensure your board remains effective. Here are tips to help keep your board on track: 

Keep open communication with nonprofit staff

Open communication fosters collaboration and trust between your board and staff, creating a solid foundation for a successful nonprofit. Regular updates, feedback sessions, and joint meetings enhance transparency and alignment to ensure everyone is on the same page. Strong communication channels lead to better decision-making and problem-solving, allowing for diverse perspectives to be heard and considered.

Maintain accurate records

Maintaining accurate records is essential for transparency and accountability within your organization. Your board should ensure that minutes, financial statements, and other important documents are well-organized and easily accessible. Proper record-keeping supports effective governance and compliance with legal and regulatory requirements. It also provides a clear history of decisions and actions taken, which can be invaluable for future reference and audits.

Regularly evaluate board members

Regular evaluations help identify individual and collective strengths, as well as areas of improvement among board members. Your board should conduct self-assessments and peer reviews on a regular basis to ensure continuous growth and development. These evaluations help foster accountability and professional development so your board can function more effectively and cohesively. 

Ensure your board has varied perspectives

A diverse board brings a wealth of knowledge, experiences, and insights. Your board should strive to include members with different backgrounds, skills, and perspectives. Diversity enhances decision-making by introducing a broader range of ideas and solutions. It also reflects the community your nonprofit serves, promoting inclusivity and representation. While most nonprofit boards are composed of major donors, it would be wise to find a few committed and passionate volunteers who can broaden the perspective. This also creates opportunities for mentorship and culture-building among your board members. 

Stay educated on your cause

Board members should stay informed about your nonprofit’s cause and the latest fundraising trends to remain effective advocates and leaders. Continuous learning through workshops, seminars, and industry publications can help your members make informed decisions and advocate effectively for your cause. This helps strengthen your board’s impact and ensures they‘re well-equipped to address emerging challenges and opportunities.

Final thoughts

Understanding nonprofit board roles and responsibilities is essential for effective decision making. By adhering to core principles, fulfilling key duties, and implementing best practices, your board members can drive your organization towards success. Remember, a well-functioning board is the backbone of a thriving nonprofit!

Additional resources

Looking for more information on nonprofit boards? Check out these resources:

• Unlocking Success: Nonprofit Board Presentation Tips. Use this guide to help with your next board presentation! 
• Nonprofit Board Member Onboarding: 12 Things to Cover. Check out these twelve topics to cover when onboarding your board members.
• 10 Tips That Will Help You Create an Engaged Nonprofit Board. Learn how to engage your board with these 10 tips!