THE PURPOSE OF NON-PROFIT BOARDS

Legal and Fiduciary | Oversight | Fundraising | Representation of Viewpoints | 

Non-profit boards are established by a person or group of people who have a clear direction, vision, and purpose for the corporation.  Most non-profits are legal corporations.  Non-profit boards should consist of volunteers who believe and understand the vision of the leadership and are committed to attending board meetings.  The board should have designated offices, terms of office, and convene at least two face-to-face board meeting annually.  The board responsibilities fall into four general categories:  legal and fiduciary, oversight, fundraising, and representation of viewpoints. 

Legal and Fiduciary

The board is generally responsible for assisting in the development of policies and procedures, which direct board action and fund solicitation.  The board should also provide fiscal guidance, make sure the organization has the money it needs to run properly, make certain the board is operating in accordance with the 501(c)(3) status it was granted, and develop support for the mission and goals of the board. 

Oversight

The board chairman is responsible for regularly reviewing and directing the operations of the board.  The board has the ability to hire/fire the chief executive, executive director, or president.  Monthly reports and quarterly evaluations should be performed on all of the duties of the organization.

Fundraising

Fundraising is an essential part of a non-profit corporation although the board must also make personal contributions in the form of time and money. The board of directors should assign an individual to chair a fundraising committee. This will allow that person/persons the freedom to form strategies to solicit funds, evaluate potential donor lists, and solicit donors. The formation of relationships with local businessmen and politicians can prove to be a valuable asset over time. Many small, medium, and large companies look to non-profit organizations to give annual donations for tax purposes. Fundraising helps the non-profit function from day to day. Once monies are received through the fundraising process, the non-profit should always take time to honor the donors who gave to the organization. This can be accomplished through newsletter articles written on behalf of the giver, hosting a fundraising banquet, or inviting a representative to your shop to see how their contributions are making a difference.

Representation Of Viewpoints

Some board members may represent a particular segment of the population but should remember that the board is not democratic.  That is, board members should always vote with the interest of the non-profit in mind and not their particular segment of the population. 

Board members are to be stewards of the non-profit, acting ultimately in the best interest of the organization.  Members must make informed, educated decisions, volunteer their time, attend meetings, take responsibility for the operations of the board, provide funds and resources, and protect the finances of the organization.