Board Basics
What is the primary role of a board of directors?
To provide oversight and guidance to an organization.
Who leads the board meetings?
The Board Chair/President
What is the term for an official record of a board meeting?
Meeting minutes
What is the term for a financial plan that guides an organization’s spending?
A budget
What is the legal responsibility of board members to act in the best interest of the organization?
Fiduciary duty
True or False: A board of directors makes daily operational decisions
False, they provide oversight but do not manage daily operations.
True or False: The board treasurer is responsible for making all financial decisions
False, they oversee finances but do not make decisions alone
True or False: Board meetings must always be open to the public.
False, it depends on the type of board and its bylaws.
True or False: Board members are personally responsible for the organization’s financial debts.
False, unless misconduct is involved
True or False: Board members can use organization funds for personal expenses if they pay it back.
False, this is misuse of funds and unethical.
What is the term used when a board makes official decisions?
A vote or resolution
What document outlines the rules and structure of a board?
Bylaws
What should be sent out before every board meeting to keep members informed?
An agenda
What is the financial report that shows revenue and expenses over time?
Income statement or profit & loss statement.
What is the term for an agreement that prevents board members from sharing confidential information?
A confidentiality agreement
What is the minimum number of members required to hold an official board meeting?
A quorum
What is the role of a board secretary?
To take meeting minutes and maintain official records.
If a board member has a personal interest in a decision, what should they do?
Disclose the conflict of interest and recuse themselves.
What is an audit, and why is it important?
A review of financial records to ensure accuracy and accountability.
What law requires nonprofit organizations to publicly disclose their financial statements?
The IRS 990 requirement.
Name two key responsibilities of a board member
Financial oversight, strategic planning, governance, hiring/firing the executive director
Name one responsibility of a nonprofit board that does NOT apply to a for-profit board.
Fundraising, ensuring mission alignment
What voting method is commonly used when making board decisions?
Robert’s Rules of Order – motion and vote.
What is the legal duty that board members have regarding financial oversight?
The duty of care.
What is the term for when a board member has personal gain from a board decision?
Conflict of interest.