Nonprofits depend on a functioning board of directors to fulfill their goals. They are looking for individuals who are passionate about their cause, have connections with those they serve and have experience in managing business affairs at some time.

Professionals from all types of businesses and organizations serve on boards of non-profit organizations. It’s a great way to broaden your network https://workboardroom.com/legal-responsibilities-of-nonprofit-board-members/ and gain new skills and have a positive impact on the community.

According to a Korngold study, 78% board members reported that their time on a non-profit board had helped them gain an understanding of other views and opinions that were different from their own. This is vital in a nonprofit board environment where decisions have to be made with limited resources and the board must make informed financial management choices.

Nonprofit board members have several legal obligations and responsibilities, including the Duty of Care and the Duty of Loyalty. Board members must stay clear of conflicts and avoid abusing their positions by utilizing funds from nonprofit organizations to gain personal gain. For instance, if your board is voting on an increase in the salary for the executive director and you control the director’s business, you must abstain from voting on the issue due to a conflict of interest.

In addition, many non-profits have permanent (sometimes called “standing”) committees to handle ongoing issues and other particular needs that arise. These committees are staffed by board members, who are required to disclose any potential conflicts of interests to other board members.