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January 4, 2010

101 Joining A Nonprofit Board

Joining a nonprofit board can be a gratifying experience, but it is important to understand the responsibilities and duties of the position before you take the plunge. The following advice, from Elizabeth Schmidt, a nonprofit consultant for Guidestar.org, will provide a general guideline for what’s expected of a board member and what concerns you should keep in mind.

Know your role. It’s imperative to understand what is and what is not expected of you before joining the board.

“Your job is to govern, not to manage,” Schmidt says. “You aren’t there to handle the day-to-day function of the organization. Unfortunately, boards often tend to be either too standoffish or too meddling. The board’s most difficult task may be to find the middle ground.”

Avoid agreeable. Once on the board, remember to be critical of issues and decisions as they are brought up during the meeting process.

“Contrary to the common practice, the actual meetings should encourage questions and dissent, because thorough discussion of each issue is evidence that the decisions were made in good faith, even if they ultimately fail,” she says.

Money matters. When it comes to a nonprofit organization’s budget, its board members are the ones in charge.

“Board members can no longer afford to daydream or rely on other members with a better understanding of finances when the budget is presented,” Schmidt says. “You need to understand the budget, ask questions and challenge assumptions, if necessary.”

Law of the land. It’s always wise to understand what you’re accountable for under the local laws.

“State laws generally state that board members have duties of care, loyalty and obedience to the organization that they serve,” she says.

"Generally speaking, the duty of care is the duty to pay attention to the organization — to monitor its activities, see that its mission is being accomplished and guard its financial resources. The duty of loyalty is the duty to avoid conflicts of interest, and the duty of obedience is to carry out the purposes of the organization and to comply with the law.”

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