Regardless of the size or age of the organization, each board has a list of principal responsibilities for its members. These include ensuring that assets of the nonprofit are utilized in a prudent and responsible manner and safeguarding shareholders’ interests, and demonstrating loyalty and respect to the governance rules (even even if they aren’t in the best interest of a particular individual).
Participation and Attendance to Meetings
It’s a given that board members should be able to participate in meetings, whether in person or online. This means that they must read the agenda for meetings in advance and actively taking part in discussions and making decisions. Board members should also be involved in committee meetings to gain a better understanding of the mission of the organization as well as its activities.
This includes preparing and reviewing the budget, managing reserve funds, and making sure that assessments are collected. The board needs an understanding of the financial situation of the community to guide decisions and manage risk.
Policy Compliance / Documents governing the Policy
This is one of the most important tasks, and it requires a thorough understanding of the documents that govern the community and a thorough knowledge of the federal, state, and local laws. This ensures that the community is in compliance and that the board has the ability to make the right choices during a time of situation of crisis. It is also a requirement to be able to address residents’ questions and concerns, and enforce the rules as necessary.