Nonprofits are dependent on a functioning board of directors to fulfill their mission. They are seeking directors who are committed to their cause, have connections with the people they serve and have had experience in overseeing business affairs at some time.
Professionals from all types of businesses and organizations sit on nonprofit boards. It’s a great opportunity to build your network and learn new skills and make a positive impact on the community.
According to an Korngold survey 78 percent of board members stated that their time on a nonprofit board helped them develop an appreciation of perspectives and opinions other than their own. This is especially important in the non-profit board environment where decisions are made with limited resources and the board is required to make prudent financial decisions.
Nonprofit board members have many legal responsibilities and obligations that include the Duty of Care as well as the duty of loyalty. This means that board members must stay clear of conflicts of interest and not abuse their position by using the nonprofit’s money for personal gain. For instance, if the board is voting on an increase in the salary for the executive director, and you own the director’s company it is your responsibility to abstain from voting on the matter due to conflicts of interest.
Many nonprofits also have permanent (sometimes called “standing”) committees that handle current issues or other special needs when they arise. These committees are led by board members that must report potential conflicts of interest to other board members.
