Directors, as their name implies, direct the course of an organization. They sit in the strategic and economic helm on the organization. At that helm are often quite a few more directors that collectively make up what exactly is named the board of directors. The knowledge and backgrounds on the board members varies widely in every single nonprofit, as does the course of action of deciding on the board.
As far as duties are concerned, in nonprofit corporations, directors are guardians of assets and resources. Their concentrate is on accomplishing the mission statement on the organization, and making certain that enough resources
flow in to the nonprofit entity.
flow in to the nonprofit entity.
In some organizations, directors have worn greater than one particular hat. By way of example, they've been employed by the nonprofit corporation, or they've acted as officers or agents in other capacities. This multi-hat practice is now discouraged as a result of the passage on the Sarbanes-Oxley Act (SOX). (See the later section “SOX Policies and Nonprofit Boards.”) As an alternative, most nonprofits are encouraged to possess a majority of independent board members that have tiny or no connection together with the organization aside from serving on the board.
