Whether you’ve recently been asked to serve on the board of an existing nonprofit or you’re part of a new startup, today I want to answer the common question, “What does a nonprofit board member actually do?” 

The 3 Key Roles of a Nonprofit Board

1. Governance

     The board is responsible for governing the organization. This means that it is ultimately the board’s responsibility to ensure that the organization’s stated mission is being fulfilled. It is the board’s job to make sure that the programs and services offered by the organization are more than just “good deeds” but that they actually support and create the specific impact that the nonprofit was created for. 

A strong governing board provides 

• Strategic direction
• Organizational Planning
• Compliance

2. Accountability

     The second key role of the board is accountability. The board is accountable to the community and the organization’s stakeholders. When the board assumes this role as the accountable body for the organization, it ties performance to meeting goals with clear objectives. This ensures sustainability and longevity for the organization beyond that of any one individual. 

3. Fiduciary Duty

     Finally the board has a fiduciary duty to the nonprofit, meaning it is legally and ethically obligated as the Board of Directors (or Board of Trustees) to act exclusively in the best interest of the organization and its mission, rather than in their own personal interest.

 Fiduciary duty requires board members to remain: 

• Objective
• Unselfish
• Responsible
• Honest
• Trustworthy
• Efficient

     Board members serve in a volunteer capacity and they are rewarded intrinsically by the satisfaction of helping the organization to carry out its mission and witness its impact on those it serves. While they are not paid for their services, they bear a great deal of responsibility to donors, stakeholders, and as stewards of the public trust, so this role should not be entered into lightly. 

     In order to fulfill their fiduciary role, there are seven key duties the board must conduct. I cover each of these seven fiduciary duties in great detail within my new signature A-Z course for nonprofit leaders called The Financially Thriving Nonprofit. 

     If you’re a new board member or you’re considering accepting a position on a nonprofit board, check out my previous video 5 Things I Wish Every New Board Member Knew Before Their First Board Meeting. 

If you found this video helpful, I want to refer you to an entire series I created called Financial Training for Nonprofit Board Members, which I think will be an even greater resource for you!