Nonprofit board members are expected to take on a range of duties. The most important is to establish guidelines for governance and management to ensure sustainability of the nonprofit, and providing financial oversight. They also formulate strategic plans and oversee the implementation of the plans. In certain situations, they can be personally liable for nonprofit obligations. For example, if they fail to pay withholding tax on wages of employees.

In many instances boards will hire an individual to oversee the company. The executive director, or CEO, is responsible for recruiting, training, and supervising the board as well as staff. They could also be involved in fundraising activities. It is important to mentor the executive director/CEO in the beginning to ensure they understand how to work together with the board.

Board members must also make sure that there is enough money for the organization to run its programs. This could mean making personal donations, organizing fundraisers and other philanthropic activities. The Board should be aware of the process of reporting financial statements and ensure that a transparent system is in place to prevent fraud or embezzlement. They should also be able develop and approve an annual budget and must be able to track how closely the actual expenses match the budget.

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