Serving on a Non-Profit Board: What You Need to Know

Serving on a Non-Profit Board: What You Need to Know

Serving on a non-profit board is a noble and rewarding act. Done well, it requires a commitment of time, talent, and resources. However, many new board members step into their first meeting without a clear understanding of their responsibilities, the organization, or the role they play. At Covenant of Courage, we believe preparation is the key to success. Here are five essential things every new board member should know before attending their first meeting:

1. Learn the Organizational History

Understanding the history of the non-profit you are joining is critical. At Covenant of Courage, we recommend new board members familiarize themselves with the following:

• Founding and Purpose: Who started the organization, and what was its original mission?

• Growth and Evolution: How has the mission or focus changed over time?

• Achievements and Challenges: What successes and failures has the organization faced?

• Community Perception: How is the organization viewed by those it serves?

• Leadership Changes: What transitions in leadership have occurred, and how have they impacted the organization?

New Covenant of Courage board members are provided with an onboarding packet that includes a timeline of our history, significant milestones, and leadership profiles. Take time to review these resources before your first meeting.

2. Understand Compliance Requirements

Compliance is crucial for any non-profit, and as a board member, you share fiduciary responsibility for ensuring the organization operates legally. Here are the key compliance questions to ask:

• Legal Incorporation: Is Covenant of Courage properly incorporated?

• 501(c)(3) Status: Is the tax-exempt status current?

• Financial Filings: Are IRS Form 990s filed and up-to-date?

• Fundraising Registration: Is the organization registered to solicit donations?

Covenant of Courage partners with a CPA firm to manage compliance. New board members receive an overview of our financial and legal standing and are encouraged to ask questions to fully understand their fiduciary duties.

3. Learn to Read Financial Statements

Board members are responsible for overseeing the financial health of the organization. At Covenant of Courage, we provide training to help new members:

• Understand the Statement of Financial Position (balance sheet)

• Analyze the Statement of Activities (profit and loss)

• Review budgets and financial forecasts

We also offer crash courses and YouTube tutorials for board members who need additional help understanding non-profit accounting.

4. Be Ready to Ask Questions

Asking questions is essential to effective board service. Whether you're reviewing budgets, discussing program expansions, or addressing challenges, you should always seek clarification when something isn’t clear. For example:

• Current Issues: Are there any ongoing legal disputes, such as lawsuits or investigations?

• Organizational Challenges: Are there internal conflicts or financial struggles?

• Future Plans: What strategic initiatives are planned for the next year?

Covenant of Courage values transparency. New board members are given access to previous meeting minutes and reports to help them get up to speed. Asking thoughtful questions ensures you can make informed decisions.

5. Understand Your Role

Board members at Covenant of Courage focus on governance, not management. Key responsibilities include:

• Strategic Planning: Setting long-term goals and evaluating progress.

• Budget Oversight: Approving and monitoring financial plans.

• Fundraising Participation: Supporting campaigns and donating personally.

• Community Representation: Acting as an ambassador for the organization.

Smaller non-profits often require board members to wear multiple hats. At Covenant of Courage, we clarify expectations early to avoid role confusion.

Common Questions New Board Members Ask

1. What resources will I receive to get started? New Covenant of Courage board members receive an onboarding packet with organizational history, compliance details, financial reports, and strategic plans.

2. What happens if I miss a meeting? While attendance is strongly encouraged, board members can review meeting minutes and follow up with the Executive Director for updates.

3. How can I make an impact right away? Start by learning as much as possible about the organization and volunteering for a committee or special project to gain hands-on experience.

4. What if I discover a major issue after joining? Address concerns immediately with the Executive Director or Board Chair. Transparency and teamwork are key to resolving problems.

5. Do I have to donate personally? Yes, Covenant of Courage expects board members to give financially at a level that is meaningful to them. This demonstrates commitment and makes fundraising efforts more credible.

Conclusion

Serving on a non-profit board, like Covenant of Courage, is an opportunity to make a real difference. By preparing in advance and understanding your role, you can step confidently into your new position. If you have additional questions or suggestions based on your own board experience, we welcome your feedback.

For more information about Covenant of Courage, visit us at www.CovenantofCourage.com.

Let’s make a positive impact together!