Regardless of the age or structure of the organization, every board has a set of principal responsibilities for its members. This includes ensuring that the assets of the nonprofit are managed with care as well as protecting shareholders’ interests, and showing the utmost respect for governance rules, even when they are not in the person’s best interest.
Attendance at Meetings and Participation
It is a given that board members should be available to participate in meetings whether in person or online. This includes reading the meeting agenda in advance and actively taking part in discussions and making decisions. It is also important that board members participate in committee activities to help them understand and take part in the activities of the organization.
Financial Management
This includes preparing and reviewing the budget, and managing reserve funds, as well as making sure that assessments are taken care of. The board needs to have an understanding of the financial situation of the community to aid in making decisions and manage the risk.
Policy Compliance/Governing documents
This is a vital obligation that requires a thorough understanding of all local, federal, and state laws. This ensures that the community is always in compliance and that the board is able to make the right choices in a emergency. It also means that you must be able to respond to residents’ concerns and questions, and enforce the rules as necessary.
