Every nonprofit organization needs to have a governing body that has responsibilities of reviewing and approving the nonprofit’s mission and direction, following an annual budget, and adhering to policies that consists of compensation, practices, and governance.
-The board members are responsible for overseeing and governing all the organization’s affairs.
-The mission and strategic direction of the organization are set through the board along with the CEO and Senior Staff. And the results should be used as a guide for future decisions.
-Having the policies clear is important to help guide and to protect the organization and its board members.
LEGAL AND COMPLIANCE ISSUES
-All state laws make it a requirement for nonprofit organizations to have a board of directors.
-Through the IRS Form 990 has a set of questions that concerns the board and its governance practices and a question concerning whether the IRS Form 990 was provided for review to the board.