Nonprofits depend on a functioning board of directors to fulfill their goal. They are looking for people with a passion for their mission and who are connected to those they serve, and who have experience managing the business affairs of some kind.
Professionals from all types of businesses and organizations serve on boards of nonprofit organizations. It is a great way to build your network and gain new skills and have a positive impact on the community.
According to an Korngold survey 78 percent of board members said that their time on a nonprofit board has given them a greater appreciation for views and perspectives different from their own. This is especially relevant when it comes to the board of nonprofit organizations where decisions are made with limited resources, and the board has to make prudent financial decisions.
Board members of nonprofit organizations have a range of legal obligations and responsibilities, including the Duty of Care and the duty of loyalty. This means that board members must avoid conflicts of interest and not abuse their position by using the money of the nonprofit for personal benefit. For example, if the board is voting on an increase in the salary for the executive director and you own the director’s company and you are the director’s shareholder, you must refrain from voting on the issue because of a conflict of interests.
Many non-profit organizations also have permanent (sometimes referred to as “standing”) committees that deal with ongoing issues or other specific needs that arise. These committees are run by board members who are required to disclose any conflicts of interests to other board members.