Resources for Nonprofit Board Members

Being on the board of a nonprofit is not an honorary position – it requires a commitment to using charitable resources in the best possible way. Donors and beneficiaries of nonprofits expect leaders to ensure the sound administration of the organization.

Duties of board members include:

• Duty of care – This involves being active in the organization’s activities and understanding its mission.
• Duty of loyalty – Board members must acknowledge that the interest of the charity and its work must be the top priority. Charitable boards should develop and follow conflict of interest policies to avoid transactions that unfairly enrich the charity’s leaders.
• Duty to manage accounts – A charity must be fiscally accountable. Board members must track budget data and establish and monitor internal controls.
• Duty of compliance – Charities have important legal obligations. Board members must ensure that their charity follows registration requirements, solicitation laws and tax provisions.

Board members could be held personally responsible for actions such as selling charitable assets at below market rates or diverting the charity’s resources for personal gain.

If board members fail to do their jobs, the charity’s work can be harmed. Lack of board oversight can lead to theft and embezzlement, which can cripple the charity.

Training

The Attorney General’s office provides training for nonprofit organizations and board members about governance and administration. To organize a training, contact the Attorney General’s Office at (800) 282-0515.

Monthly board governance webinars

Webinars will be held on the first Wednesday of each month at noon. The trainings will address board issues while participants watch the presentation online and listen by phone. Participants will also be able to ask or e-mail questions during the training.

In order to participate, you will need:

• Access to the Internet
• A telephone connection

Dates and registration