Nonprofits rely on a well-functioning board of directors to carry out their goals. They are looking for people who are enthusiastic about their mission, are connected with the people they serve and have experience managing business affairs at one time.
Professionals from all kinds of companies and organizations serve on non-profit boards. It’s a great chance to network, acquire new skills, and contribute positively to the community.
According to a Korngold study, 78% board members reported that their service as a member of a non-profit’s board helped them gain a better understanding of views and opinions that were different from their own. This is especially important in the non-profit board environment where decisions are made with limited resources and the board has to make sound financial management decisions.
Nonprofit board members are subject to a variety of legal obligations and responsibilities that include the Duty of Care and the duty Nonprofit Board Members of loyalty. This means that board members should avoid conflicts of interest and do not make use of their position by using the money of the nonprofit to gain personal benefits. If you are the owner of the company of the executive director, and the board members are voting to increase the salary for him, you should abstain because you have a conflict.
In addition, many non-profits have permanent (sometimes called « standing ») committees to manage ongoing issues as well as other specific needs as they arise. These committees are staffed with board members who must disclose potential conflicts of interest to the other board members.