When Is a Board a Board? When Is It Not a Board?

When Is a Board a Board? When Is It Not a Board?

What we commonly refer to as a nonprofit "board" is the governing board of a nonprofit corporation. This board is charged by law with the oversight of the nonprofit organization. Board members have a fiduciary duty and risk legal liability if they fail in their duties of care, loyalty, and obedience. The legal organization and responsibility is what makes a "board" a "board." Only the governing board has decision-making authority related to organizational strategy, budget, and the hiring of the CEO.

A board is not a board when the nonprofit organization forms another body of people who are passionate about supporting the mission by providing business counsel and various means of service, and potentially giving and raising money. These non-governing boards are often referred to as Friends Boards, Advisory Boards, or Associate Boards; they can provide extraordinary value to nonprofits in serving regional, national, and global communities.

What this means for you is that there are a plethora of opportunities for business people of all stages--from corporate CEOs to young professionals--to engage in productive roles to advance meaningful causes.

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Korngold Consulting LLC assists corporations in building fully integrated, high-impact CSR strategies, including leadership development through nonprofit board service.  Korngold Consulting trains and places business executives on nonprofit boards, and consults to nonprofit boards and leaders to strengthen governance for financial and strategic success.