A key component of a well organized nonprofit is the board of directors. The board of directors oversees the entire organization. Both federal and state statutes require that a nonprofit organization have a board of directors. The board sets the tone for the entire organization.
Many organizations seem to make the same mistakes over and over again.
Even when they fix one set of problems in one aspect of the organization, the problem seems to appear in another aspect of the organization. The real problem may originate in the board of directors. Because of the importance of the board of directors, many funding sources review how a board functions, its effectiveness, and its composition. The board of director's primary purpose is to assure that the nonprofit fulfills its mission and meets its goals. More specifically, the board of directors' purpose is to set broad policy, review and approve programs and budgets developed and implemented by the Executive Director, and ensure financial stability and accountability.