Certified Nonprofit Professional Practice Exam

What is the role of the board of directors in shaping a nonprofit’s policies?

1. To make all operational decisions

2. To provide governance and oversight

3. To execute daily programs

4. To manage fundraising events

The correct answer is: To provide governance and oversight

The role of the board of directors in shaping a nonprofit’s policies primarily involves providing governance and oversight. This includes setting the strategic direction of the organization, ensuring compliance with laws and regulations, and monitoring the performance of the organization to ensure it meets its mission and goals. The board is responsible for establishing policies that guide the work of the nonprofit, which helps in maintaining accountability and transparency. This oversight protects the interests of stakeholders, including donors, beneficiaries, and employees, by ensuring that the organization operates in alignment with its mission and values. While the board does not get involved in the day-to-day operational decisions or management of specific programs, its role in governance is crucial for effective leadership and long-term sustainability of the nonprofit. The other roles, such as executing daily programs or managing fundraising events, typically fall under the purview of the organization's staff or designated committees, rather than the board itself.