Nonprofits are dependent on a functioning board of directors to accomplish their goal. They are seeking directors who have a passion for their cause, have connections with those they serve and have had experience in overseeing business affairs at some time.
Professionals from all kinds of companies and organizations are members of nonprofit boards. It’s a great way to build your network, learn new wikipedia reference skills and contribute positively to the community.
According to an Korngold study, 78% of board members stated that their involvement on a non-profit board helped them gain a better understanding of perspectives and opinions different from their own. This is important when working in a nonprofit board where decisions must be taken with limited resources and the board must make informed financial decisions.
Board members of non-profit organizations have a number of legal obligations and responsibilities. This includes the duty to care and the duty of loyalty. This means that board members need to avoid conflicts of interest and not misuse their position by utilizing the funds of the nonprofit for personal gain. For instance, if your board is deciding on an increase in salary for the executive director, and you own the director’s company, you must abstain from voting on the matter due to a conflict of interests.
Many nonprofits also have permanent (sometimes referred to as “standing”) committees that handle ongoing issues or other specific needs when they arise. These committees are run by board members who have to disclose possible conflicts of interest to other board members.