Nonprofit board members must be prepared to take on a variety of tasks. The most important is to establish governance and management policies to ensure sustainability of the nonprofit and ensuring financial oversight. They also create strategic plans and supervise the implementation of the plans. In certain situations, they can be held personally liable for nonprofit liabilities. For instance in the event that they fail to pay withholding tax on employee wages.

In many instances the board will employ an individual to run the business. The executive director, also known as the CEO, is accountable for bringing in, training and supervising the board and staff. They may also be involved with fundraising activities. The job of the executive director is a big obstacle for a newly founded nonprofit and it is best to have an experienced board member coach the new ED/CEO, so they will understand how to work with the board to ensure success.

Board members should also ensure that the organization has sufficient funds to implement its programs. This can include personal donations or fundraising events, as well as other https://kidsboardroom.com/goal-tracking-apps-for-board-members/ philanthropic efforts. The Board should be well-versed in how nonprofits present their financial statements and ensure that a clear and efficient system is in place to guard against embezzlement or fraud. They should also be able make and approve an annual budget and they should monitor how closely the actual expenses match the budget.