The board members of nonprofit organizations must be prepared to take on a range of tasks. The most important responsibility is to establish management and governance policies https://kidsboardroom.com/goal-tracking-apps-for-board-members/ that help ensure the sustainability of a non-profit and to provide financial oversight. They also formulate strategic plans and oversee the implementation of these plans. In certain circumstances they could be held personally liable for nonprofit liabilities. For instance in the event that they fail to pay withholding tax on wages of employees.

In a majority of cases the board hires an employee to manage the company. This is referred to as an executive director, or CEO, and they are responsible to recruit, train and supervise the staff and board. They could also be involved with fundraising activities. The job of the executive director can be a significant problem for a nonprofit that is new, and it is often recommended that an experienced board member be the mentor for the first CEO/ED, so that they understand how to work with the board to ensure success.

Board members also need to make sure that there is enough money in order to implement its programs. This could be through personal donations as well as fundraising events and other philanthropic initiatives. The Board should be familiar with the way that nonprofits present their financial statements and ensure that a proper system is in place to avoid embezzlement or fraud. They must also be able to develop and approve an annual budget, and they must monitor how closely the actual expenditures correspond to the budget.