Many states have laws governing the responsibilities of the board of directors. They often use the following principles of nonprofit corporation law.
A board member has the duty to exercise reasonable care when he or she makes a decision for the organization. Reasonable care is what an "ordinarily prudent" person in a similar situation would do.
A board member must never use information gained through his/her position for personal gain; and must always act in the best interests of the organization.
A board member must be faithful to the organization's mission. He or she cannot act in a way that is inconsistent with the organization's goals. The board member is trusted by the public to manage donated funds to fulfill the organization's mission.
- Make sure that the organization follows the law.
- Approve all major contracts.
- Are required to attend most board meetings, thus indicating their dedication to the organization.
Your board should have skills in those areas of organizational management that you will need such as finance, public relations, legal, and human resources; and in programmatic areas as well such as social services, education, religion, etc.
Consider the fundraising potential of a board member. They are expected to set an example by donating to the organization themselves; and to open the doors to other contributions. Board members should be comfortable with fundraising.
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