Nonprofit Boards: What Should You Consider Before Joining?

Perhaps a friend or business colleague has just contacted you to ask you to join a nonprofit board.  You feel honored and excited to receive the invitation, and you have heard of this organization and believe that it has a positive reputation and does good work in your community.  Before you immediately accept the invitation, you should pause, and investigate what the commitment will entail. The following is a brief outline of key questions and issues that you should consider:

Why Me?  Does the nonprofit organization want me to join the Board for my leadership skills?  Business acumen?  Contacts in the community?  Significant donations from me?  My ability to help solicit donations from others?  Understanding what the organization is looking for from you is key.  

What Benefits do I get from serving on a Board?  The best answer to this question is  “I am passionate about the organization’s mission and I want to help advance such mission.”  Other appropriate reasons to join a nonprofit board include: (i) a desire to network with the other Board members; and/or (ii) to develop my leadership skills by learning from others on the Board.

Due Diligence Before you join a Board, do some homework.  Review the nonprofit’s organizational documents, recent financial statements, strategic plan and make sure that the organization has directors and officers insurance.  Don’t be afraid to ask for any and all of these from staff or a fellow board member. As well, discuss how much time you are expected to spend on Board matters.

Legal Duties:  As a Board member you have the following fiduciary and legal obligations:

• Duty of Care – Board members must keep informed about the operations of the nonprofit organization,, attend Board meetings and actively participate in Board meetings.
• Duty of Loyalty-  Board members must act fairly and in the best interest of the organization without concern for their own interests.  Board members must avoid conflicts of interest and should not divert any business opportunities available to the nonprofit for personal gain.
• Duty of Compliance - Board members should be faithful to the nonprofit’s purpose and mission.  Board members should understand and comply with the governing documents and to the laws and regulations that relate to the organziation’s operations.
• Duty to Manage Accounts-  Board members are responsible for the nonprofit’s overall financial stability and accountability.  Not for day-to-day management, but for providing assistance to management with the establishment of budgets and providing clear direction to management for spending.  Remember that donors and the public place their trust in Board members to be good stewards of the organization’s funds.

In conclusion, Board service can be a fulfilling experience for you, the nonprofit and the community that it serves.  But like most fulfilling endeavors, you should be prepared to put in the work required for the role.