800.673.2558

Blog

Nonprofit Insurance Services

Hold Your Board of Directors Accountable

By anonymous
November 06, 2012

There are certain issues that come up in a nonprofit organization that the board of directors should be held accountable for.  The first items is the fundraising that needs to be organized & completed.  Therefore, the board members are going to need to do a lot of research on internal sources that are going to be able to give the organization the funding that it needs.  If the organization does not get the funding that it needs, then the members of the board should be held accountable for getting the proper funding for the organization.

The second item that a nonprofit organization is probably going to hold the board members accountable for is the increase of support from the community that surrounds the nonprofit.  Therefore, the members of the board are going to need to explain very thoroughly what the whole purpose of the organization is going to be.  Once the community actually understands the organization, then they are going to be a lot more likely to accept the organization into the community.  This probably means that some of the volunteers for the board is going to need to be from the community.  This is going to help get the community to support the organization and might lead to more people volunteering to help out with the nonprofit organization.

The third item that a nonprofit organization is probably going to hold the board members accountable for is that the board members are going to need to make sure that the organization is registered with the office of the secretary of states and the organization needs to have all of its legal paperwork.  All of these things are going to need to be done before the organization is going to be able to get any of the funding that they need.  This is a very simple process since all of the board members might to do is organize the paperwork.  The organization is also going to need to fill out a IRS Form 1024 for tax purposes.

The fourth item that a nonprofit organization is going to hold the board members accountable for is accounting.  This means that the treasuerer of the board is going to need to know how to do the financial reporting for the organization.  Many nonprofits partner with local accountants that specialize in nonprofit accounting laws.  Even though the board members might not be able to do all of the accounting, they are going to at least know how to read and make sense of all of the financial statements.

Leave a Reply

Your email address will not be published. Required fields are marked *

Free Savings Analysis Form

i.e. shelter, club

or Call 800.673.2558

All content 2017 Nonprofit Insurance Services, All Rights Reserved.