The Essential Guide to Nonprofit Board Member Roles: Managing Resources, Risks and Crises

Whether you’re new to a nonprofit board or looking to sharpen your leadership skills, understanding what’s expected of you is key. Board service isn’t just about showing up every quarter or approving the annual budget. It’s about hands-on work to manage resources, protect the organization during tough times and keep every decision rooted in your mission.

This guide breaks down nonprofit board roles with a focus on resource management, risk and crisis response. Find out what should keep you up at night (and what shouldn’t) as a board member, and how you can bring your best to the table—especially when the going gets tough.

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Managing people and volunteers

People are at the heart of every nonprofit. While the CEO leads the charge in managing staff and volunteers, the board has a critical supporting role.

Supporting the CEO means making sure they have what they need to build a strong team. Many nonprofits struggle to attract, and keep, the talent they need. If you’re sitting at the board table, your voice helps shape hiring strategies, set fair pay and spread the word about volunteer opportunities.

Here’s what board members should be asking themselves:

• Are we paying staff enough to attract top talent?

• When did we last review our staff compensation and benefits?

• How do we support the CEO in finding and keeping great employees?

• Are we sharing the organization’s story in our networks to encourage new volunteers?

• Do we encourage a welcoming and supportive environment for staff and volunteers?

  
  

It isn’t just about filling roles—it's about making sure the team feels valued and supported. Boards can also help by promoting the organization in the community, sharing opportunities and sparking pride among supporters.

Time management in nonprofits

Time is a nonprofit’s most limited resource. Small organizations rarely have enough staff, and everyone wears multiple hats. Decisions about how to spend time aren’t always easy.

Sometimes the CEO needs the board to help prioritize. Maybe it’s choosing between planning an extra event or spending an afternoon reaching out to donors. Sometimes it’s about deciding which programs survive a budget cut or which partnerships to pursue.

Scenario: The executive director asks if the team should devote their time to a fundraiser or focus on direct service this month. The board's guidance helps weigh the long-term benefits against the day-to-day mission. These tough calls make a real difference in the health and future of the organization.

Boards support the CEO by helping with these decisions. Extra meetings, emails or group discussions may be needed. Focus on how each decision impacts your mission and the longevity of your nonprofit.

Financial Management Basics

Nonprofits must earn money too. This surprises many new board members, but just like any business, a nonprofit needs income to pay staff, keep the lights on and maintain its services.

The board’s key financial tasks include:

• Approving balanced budgets (never approve a budget showing a loss).

• Reviewing financial statements frequently (monthly or quarterly is best).

• Asking direct questions about income, expenses and long-term plans.

• Building financial reserves for rainy days.

• Making sure spending matches your mission, vision and values.

• Overseeing major assets like buildings, leases and insurance.

  
  

Small nonprofits can feel like they’re always chasing money. When fundraising isn’t mature, it’s tempting to dream of starting an endowment. In reality, building reserves—like a household’s rainy day fund—comes first. Healthy reserves allow your nonprofit to keep staff paid and services running during crises, like unexpected event cancellations or sudden dips in revenue. They provide staying power when things get tough.

Ask yourself: How many months of savings does our nonprofit have? Could we continue paying staff if all our fundraisers were canceled tomorrow?

A strong board never stops asking questions about financial health and makes sure actions always match your organization’s core beliefs.

Aligning spending with mission, vision and values

Every dollar your organization spends should make sense in light of your mission, vision and values.

Would our founders be proud of this decision? Does this budget reflect why we exist?

Never lose sight of the bigger picture when reviewing spending choices. The best boards check that every financial move lines up with what the organization stands for. If the answer isn’t clear, keep asking questions until it is.

Risk management on the board

Risk isn't only about money. But when things go wrong, money is often at the heart of the story. Boards protect the organization from losses, theft and misuse by putting the right controls in place.

Even the nicest boards can overlook a loophole. That can make it easy for someone to mismanage or steal funds. Setting up checks, reviewing policies and making sure duties are clearly divided protects everyone.

Risk management goes further:

• Implement and test basic financial controls

• Do regular risk assessments to spot weak areas

• Develop staff and volunteer retention plans to avoid losing key people

• Review insurance and key contracts annually

• Monitor leases and other obligations

  
  

A thorough risk assessment is vital. Many board members bring experience from their professional lives that can be tapped to make sure the nonprofit stays safe and strong.

Preparing for crisis management

Crises can strike any nonprofit. Fraud, lawsuits, natural disasters, internal scandals or sudden cash crunches can hit when you least expect it. You don’t want your first thought to be, “I wish we’d had a plan.”

Understanding the reality of crises

Every year, news headlines tell stories of nonprofits blindsided by crises. No one ever thinks it’ll be them. But reality says otherwise. Facing a tough situation isn’t just a possibility—it’s something boards should expect and prepare for.

Crises come in all forms:

• Allegations of fraud or theft

• Negative media coverage

• Accidents at service events

• Major systems or building failures

• Public policy changes or health emergencies

  
  

Being unprepared can damage your nonprofit’s reputation, legal standing and even its ability to serve the community.

Developing a Crisis Plan

The best boards create a written crisis plan long before disaster hits. Here’s what it should include:

1. Crisis notification list

   Who does the CEO call first—board chair, executive committee or an outside advisor?

2. Communications partners

   Is there a public relations firm or legal expert ready to help with messages?

3. Internal board notification

   How will all board members be alerted about the crisis? You don’t want to read about it on social media before hearing from your own team.

4. External communication

   What guidelines exist on who can talk to the press? How do you keep the public and stakeholders updated?

5. Prevention strategies

   What steps can you take now to lower your risk? Review and update policies regularly.

   
   

Checklist for board crisis plans:

• A clear crisis communication chain

• A designated spokesperson for the organization

• Pre-drafted statements and holding messages

• A template for notifying the board and key partners

• Annual review and update of the crisis plan

  
  

Preparation means you can act quickly, calmly and in the best interest of your organization when something unexpected happens.

Board’s role during a crisis

Not every board member will be on the front line of crisis response, but the board’s support and oversight are critical.

• Back up the CEO and staff with sound advice and steady leadership

• Help with key decisions about messaging and stakeholder outreach

• Stay informed and involved until the crisis has passed

• Protect the nonprofit’s legal and ethical standing

  
  

Prevention is always the best option, but wise boards are ready for anything.

Additional board member responsibilities

Continuous improvement and learning

Leadership doesn’t stop at basics. The best board members keep learning about nonprofit management and seek out new resources and policies to strengthen their organizations. Regular policy reviews, annual self-assessments and board training all help.

Find more practical tips and resources for board members at Schmucker Advising Group’s website. Join the conversation for updates and advice—follow Schmucker Advising on LinkedIn, Instagram, and Facebook.

Engagement in fundraising and advocacy

Support doesn’t always mean asking for donations. Board members play an important part in fundraising and advocacy by sharing their passion, spreading the word and connecting the nonprofit with new supporters.

Want to learn more? Upcoming videos and guides from Schmucker Advising dig deeper into practical fundraising and advocacy strategies for board members.

Resources and Support

Nonprofit board work is complex but rewarding. To join the conversation for updates and advice follow Schmucker Advising on LinkedIn, Instagram, and Facebook.

Final thoughts

Serving on a nonprofit board means more than just meetings and budgets. It’s about making wise choices, keeping the mission front and center and being prepared for hard times. When you help manage people, time, finances and risks well, your nonprofit stands stronger in any storm.

Keep learning, stay connected, and never stop asking yourself: “How can I help this organization serve its mission, both today and in the long run?”

For more support, inspiration, and practical tips, subscribe to Schmucker Advising on YouTube, follow on your favorite social channels, and browse the Schmucker Advising website for up-to-date tools and free resources.

Ready to take your board service to the next level? Your nonprofit—and your community—will thank you.