It is essential to be aware of the responsibilities and scope of each position prior to applying to join a company’s board or director. With clear roles, you will minimize the risk of conflicts of interest and will help create an efficient board.
Nonprofit boards are typically made of volunteers who devote their time to assist in the achievement of their mission and act as an controlling body. Additionally the board can also include committees who perform a substantial portion of the board’s responsibilities as well as increase the effectiveness and efficiency of the board.
A typical structure comprises a Fundraising Committee, Governance Committee (which decides on policies and programs), Finance or Audit/Risk committee, Nominating committee and other Ad-Hoc committees. Each organization can have its own committee structure.
Many nonprofit organizations also have a CEO/Executive director who is a manager, not a board member. Many people mistakenly believe that the roles of the President and CEO/ED are the same. However the President’s role is one of governance while the CEO/ED’s job is one of management.
The best method to find members is to actively seek out engaged community members with the expertise, knowledge and networks that can benefit your organization. Nonprofits can identify potential candidates by a variety, including a board matching program, networking events and platforms like LinkedIn. Nonprofits must also have a method for onboarding and educating new members on their specific responsibility. Additionally, nonprofits must have strong governance procedures for their boards and D&O protection in place to mitigate the risk and ensure their success.