Nonprofit boards are groups composed of individuals who work to govern the organisation. They do this by having regular meetings, with the goal of establishing strategy and direction, managing resources, and providing oversight. Boards may also engage in philanthropic activities, including fundraising and providing professional assistance in the form of pro bono to the nonprofit.

Most states have a minimum of board members a non-profit organization must have. Some even require the board be diverse to keep their tax-exempt status. The requirement to be diverse isn’t intended to be a political plaything, though: Diversity should be based on the absence of conflicts of interest or other reason that might prevent the person from being on a board of a non-profit organization.

The Board’s responsibilities include appointing committees, selecting and reimbursing the CEO, establishing the budget, overseeing legal issues, reviewing and approuving financial reports, setting the compensation for the top staff members and developing a strategic plan. Boards also aid in representing the company in the local community and in meetings with government agencies donors, media and.

In addition to appointing committees and selecting and compensating the CEO and setting the budget, boards also have to conduct due diligence on potential donors, ensuring that they are legit and that they are able to contribute to the non-profit. They also must review and approve financial reports and keep accurate minutes of every meeting. A functioning Board will take its duties seriously and work together in order to achieve success.