Board of Directors and Officers in Nonprofit Organizations
A nonprofit’s board of directors elects the organization’s officers, typically a president, vice president, treasurer, secretary, and executive director/CEO. Most states require nonprofits to elect at least a president, treasurer, and secretary.
President’s Duties and Titles
What are the legally prescribed duties of the nonprofit president? Several laws dictate a nonprofit’s structure and the president’s duties—or any head, whether CEO, chairman, or other—to prevent conflicts of interest.
Most nonprofit corporations have a president, secretary, treasurer, and some have other positions like a vice-president or assistant secretary, depending on needs and state laws. Regardless of state and IRS rules, it is best practice to have distinct individuals fill the roles of president, secretary, and treasurer to apply for 501(c)(3) tax exemption.
CEO’s Role in Nonprofit Organizations
The CEO of a nonprofit is involved with multiple facets, similar to a for-profit CEO. Their role includes: daily operations management; developing, implementing, monitoring, and assessing programs; and impact.
Nonprofit President and Board Structure
Can a nonprofit run without a president?
A nonprofit can operate without a president. The board of directors leads the organization. Other common top positions are executive director or CEO. Nonprofits must have at least a president, treasurer, and secretary by law in most states. Additional positions like vice president depend on the organization’s needs. Sharing the president’s duties between co-presidents is also an option.
Nonprofit Leadership and Organizational Structure
The basic nonprofit structure is divided into three areas—governance, programs and administration—and further subdivided within each area depending on purpose and goals. Distinguish between directors (board members) and officers. State law may require a nonprofit to have a president, while federal law does not. The IRS requires nonprofit organizations to publicly disclose officer, director, trustee, and key employee salaries.
Compensation and Responsibilities
An early career Non-Profit President with 1-4 years of experience earns an average total compensation of $82,352 based on 17 salaries. A mid-career Non-Profit President with 5-9 years of experience earns an average total compensation of $87,859 based on 10 salaries.
President’s Role in Nonprofit Management
What does a president of a nonprofit do? The head of a nonprofit has several options for potential titles. Many nonprofits do not have a president. The top staff position is most commonly executive director, with the president and/or CEO more common in larger organizations. Several laws dictate a nonprofit’s structure and the president’s duties to prevent conflicts of interest. State law may require a nonprofit to have a president, while federal law does not.
Board of Directors’ Responsibilities
The board of directors of a nonprofit has the power to make all strategic decisions for the organization, even if board members serve temporary terms. Like for-profit executive managers, nonprofit board members set the strategic direction of their organizations. Your board of directors is the primary decision maker and is responsible for overseeing management. As a result, your board should approve any decision involving significant financial, legal, or tax issues, or any major program-related matter.
Legal Requirements for Nonprofit Companies
Nonprofit companies must at all times have at least three directors. The appointment of an auditor and company secretary is optional.