Contents
What Is a Nonprofit?
How to Define Your Mission
How to Choose and Protect Your Nonprofit’s Name
How to Set Up Your Board
How to Write Your Articles of Incorporation
Nonprofit Tax Matters
How to Write Your Bylaws
Nonprofit Management and Operations Issues
Insurance for Your Nonprofit
Nonprofit Fundraising Basics
Nonprofit Publicity Basics
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Next: How to Write Your Articles of Incorporation |
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How to Set Up Your Board
A nonprofit board is a group of people chosen to oversee the long-term health of the organization. Board members typically serve without financial compensation and are responsible for:
- Setting policies
- Hiring the executive director
- Overseeing organization finances
- Raising funds
In a larger sense, board members are charged with preserving the public trust—making sure that the organization doesn’t abuse the special rights it’s been afforded by the government via its IRS status as a public charity. They can also help with the mission statement.
Typical Board Job Responsibilities
Title |
Responsibilities |
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President |
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Vice president |
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Secretary |
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Treasurer |
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How to Select Board Members
Given the vital role of your nonprofit’s board, you should take great care in selecting its members. The inaugural group, called your incorporating board, will help your organization get off the ground. This small group of members (and those who follow in their footsteps) should be deeply committed to your mission and willing to advocate publicly for it.
Beyond those initial criteria, board members should have skills that complement the needs of your organization. Many nonprofits look to board members for accounting, legal, public-relations, and fundraising help. Recruiting a board will, in many cases, be the first test of your initial mission statement. You’ll find out whether the mission and your presentation of it are compelling enough to attract the kind of supporters you need.
Who Should the Board Members Be?
Your board members should represent a diverse array of opinions and perspectives. Avoid filling the seats with family members and friends, who may only reinforce your ideas about how things should be done. It’s important to select board members who work well in a team and can disagree respectfully and constructively. These are difficult qualities to assess
in advance, but in many cases, deep commitment to a shared mission can bridge many divides. Ultimately, board members should want whatever is best for the organization.
How to Recruit Board Members
A good place to start your search for qualified candidates might be people with whom you have previously volunteered. For example, you might know an attorney who volunteers for similar causes in her free time and whose legal expertise would make her a useful addition to the board. Family, friends, and coworkers can often offer recommendations for good people to ask. Additionally, keep up with the news in your area, and you may find a number of community leaders you want to approach.
When recruiting board members, you must have clear expectations of them in terms of time commitment, leadership, and financial contributions. To ensure that things run smoothly, clarify your expectations before beginning your search.
When the Board Is Chosen
Once you’ve successfully recruited board members, share official documents, such as the following, to outline expectations in even more depth:
- Bylaws: These governing documents (see How to Write Your Bylaws) often include board member responsibilities and the actions (e.g., missing several meetings) that could have them dismissed.
- Job descriptions: Nothing spells out a board member’s role more clearly than a document expressly devoted to that aim. A job description should include exactly what you expect the member to do; the document can be revised as experience or the passage of time deems necessary.
- Contracts: Some nonprofits go so far as to have board members sign agreements outlining their obligations to attend meetings and serve on committees.
BoardSource (www.boardsource.org) is a nonprofit organization that aims to increase the effectiveness of nonprofit boards. It offers an “E-Policy Sampler” that can help organizations think through their board responsibilities and procedures by reviewing examples in 48 topic areas, from board member agreements and job descriptions to budgeting and fundraising.
How to Hold Your First Board Meeting
Documenting your first board meeting is an important step in the nonprofit formation process. The directors you’ve named in your articles of incorporation should be present at the meeting to elect officers. Another typical item of business is passing and documenting a resolution to open a bank account. (Some banks require such documentation.) Minutes of the first meeting should be placed in a board book, a binder that holds your bylaws, articles of incorporation, and meeting minutes.
Some organizations conduct meetings according to Robert’s Rules of Order, a commonly accepted form of parliamentary procedure (for more information, see the Quamut guide to Robert’s Rules of Order). Board chairs should settle on a procedure that boosts participation among all members and ensures that issues are comprehensively explored and outcomes are respected. Books devoted to more effective meeting strategies, as well as websites such as www.parliamentarians.org and www.parliamentaryprocedure.org, are helpful resources.
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