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The governance of a nonprofit board is essential to the success of any organization. The board is accountable for overseeing the mission of the organization and must also abide by legal and ethical standards when they oversee and manage it. In order to meet these obligations the board must follow best practices across all areas.

One area that is of particular concern is fundraising and donor management. The board should be focused on fostering the development of innovative ideas from members in order to support these efforts. It should also leadership in attracting and keeping new members. Included in this is an explanation of the role, and what they will be doing. This will avoid miscommunications and expectations and help in the process of securing a job.

Another crucial area is making sure that the proper management of funds. The board should safeguard the tax-exempt status of non-profit organizations by ensuring that all expenditures are justifiable. The board should also ensure that the CEO’s spending is accountable and the organization does not spend more than they have.

Board members can get distracted by the importance of serving the community and forget that they are in charge of the business. This can be seen in the most significant issues, such as the appointment of an executive director, to the smallest details such as weighing in about the pricing for a service. To avoid this, it’s important for the board to conduct regular evaluation of its performance and make the necessary changes.