The executive director reports to the board, with the chief liaison being the chair of the board. This is the body that hires the ED, monitors and evaluates that person’s performance, and directs the search for a new chief executive if that becomes necessary. The ED and the board work together as a team to carry out the mission of the organization, but each entity has autonomy in certain areas. Though there are over-lapping areas, in general the board is responsible for mission and vision, sets[…]

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Attorneys, accountants, and other professionals can contribute valuable expertise to a board. In the best-case scenario, it would be nice if their services would be given voluntarily. However, that is not always feasible.The underpinnings of the policy that allows tax exemption for public charities is that the dollars raised are used for "exclusively charitable and educational" purposes. The IRS wants to be sure that none of the tax-exempt dollars raised by the nonprofit inure to the benefit of[…]

It is probably impossible to find a board member who will never have a conflict of interest. An active board member often has numerous professional and personal affiliations and, undoubtedly, some of them cross paths with your organization. He or she may have been chosen as a board member partly because of these associations or the contacts they might provide.However, if these associations develop into a conflict of interest and become a major obstacle to fulfilling the duty of loyalty — one of[…]

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There are many ways to structure the evaluation of an executive director. Often the board delegates the job to a subcommittee of the board (e.g. executive team), although the whole board should have an opportunity for input. To begin the process, the board and executive director should agree on the timing and form of the evaluation prior to the start of the evaluation period. The evaluation should be based on predetermined criteria, including the executive's job description and personal goals,[…]

In Maryland, nonprofits are private entities and generally are not required to hold “open meetings” unless they were created by governmental action or unless the organization has been required to do so by a governmental entity that funds the organization. However, receiving government funding does not normally require “open meetings.”According to the Open Meeting Acts Manual, published by the Maryland Attorney General’s office, the first step for anyone challenging a closed meeting is to[…]

Minutes are business records of the organization. Minutes should be kept of all meetings of the Board of Directors, as well as committee meetings where the committee is making decisions on behalf of the board. Decisions of committees should be brought to the full board in regular reports. Minutes are not official until they have been approved by the Board (or committee) at the next meeting.Board minutes keep all members informed of actions taken and those that need to be taken in the future.[…]

There are a number of reasons for removing a member of the board of directors, including non-attendance at board meetings or committees, being inactive in general, or being so obstructive that he or she keeps the board from functioning effectively. The board should provide for the possibility of removal by addressing it in the bylaws.There are several strategies that can be considered: term limits, personal intervention (preferably by the board chair), or removal by vote of the Board.A sample[…]

Generally speaking, board members should not be compensated for their service as board members. In fact, the voluntary nature of nonprofit boards is one of the important elements of the nonprofit sector in the United States. Less than 1 % of nonprofit organizations across the nation provide compensation to board members for their service as board members.The Standards for Excellence: An Ethics and Accountability Code for the Nonprofit Sector® states, "Board members should serve without[…]