The nonprofit board of directors is composed of dedicated leaders that are brought together for a larger purpose. Board members can come from all types of backgrounds. Lawyers, volunteers, accountants, or politicians can all contribute their expertise to an organization. However, the most important roles every board needs to include is the president, treasurer, and secretary.
In many states, the role of the secretary can not be overlapped by the president as it is a violation of corporate law. Additionally, some states, like California, prohibit the president and the treasurer role to be run by the same individual. The foundation of any nonprofit rests upon these three roles, which help shape the nonprofit in its specific roles.
Summary
President’s Responsibility
Nonprofit presidents have many duties they must fulfill in both the legal side and the day-to-day operations of running a nonprofit. The president must be well-read in the laws pertaining to nonprofits which include: state law, federal law, organization’s
bylaws, and articles of incorporation. Understanding the regulations a nonprofit is bound to by the law is an obligation every president must fulfill. Failure to operate legally can forever tarnish the reputation of the president and even the members involved in the organization.
The responsibility of a president does not stop after accrediting their nonprofit. The president is the face of the nonprofit that must consistently reflect the image of a nonprofit in a captivating manner to bring in donors. Additionally, presidents must demonstrate good governance during board meetings and make sure the discussions flow fluidly. Ultimately, the president is the main figurehead that governs fundraising, legal technicalities, planning, and the board of directors.
Treasurer’s Duty
In a typical board meeting, a nonprofit treasurer compiles a financial report since the last meeting. By educating the rest of the board about the nonprofit’s financial state, it allows the board to act accordingly to what is achievable. Since fundraising is the primary stream of income for nonprofits, the treasurer must make sure that the cash flow of the organization is properly allocated.
Similar to the president, the treasurer must be well-read in the legal financial obligations the organization must oblige to. Thus, treasures are assigned the task to file a Form 990, an audit report, tax returns, and other financial reports that few to no other members can accurately write. Treasurers must always be aware of the transactions within the organization as any fraudulent activity, even at a relatively micro-level, can potentially ruin a nonprofit.
Secretary’s Role
Organization and communication are always the top priorities for a nonprofit secretary. A secretary’s role is to organize meeting times, record important meeting information, file corporate documents, and communicate important dates and issues for board members. The efficiency of a nonprofit is heavily influenced by the effort a secretary puts into organizing meetings and communicating the necessary information.
A lot of the work the president, treasurer, ad secretary carry out is behind the scenes, which means disciplined individuals tend to fulfill them. Undoubtedly, the president has a wider range of issues that he/she must continuously address and aim to solve. However, the responsibilities of the secretary and treasurer should never be undermined as the foundation of a good nonprofit is built by them. These officers have a higher responsibility than the rest of the board members due to their legal duties. Individuals that fulfill these roles, will define a nonprofit’s productivity and serve as well-admired members of the organization.
Financing Solutions Help In Nonprofit Budgeting
Financing Solutions, a leading provider of business loans for nonprofits in the form of a 501c3/not-for-profit line of credit and an A+ and 5 Star-rated BBB company, has been the leading provider of nonprofit lines of credit since 2012 to nonprofit organizations that have at least $200,000 in yearly revenue.
The nonprofit credit line is often very helpful when an unexpected expense or opportunity arises that wasn’t budgeted for and when cash flow is temporary down. The credit line allows a nonprofit to have a cash backup plan that costs nothing when it’s not being used and is inexpensive when needed.
The credit line requires no personal guarantee and no collateral. The nonprofit online application takes 2 minutes to fill out and there is no obligation.
The time to get a line of credit for your nonprofit is when you don’t need it.
