Board Service: Helping Clients Lead with Confidence

For many clients, philanthropy extends far beyond writing a check.

Serving on the board of a nonprofit is one of the most meaningful ways people invest their time, talents, and leadership in the organizations and causes they care about most. Whether they’re joining the board of a local arts organization, school, community nonprofit, or national charity, board service offers an opportunity to make a lasting difference.

It also comes with important responsibilities.

As a trusted advisor, you’re uniquely positioned to help clients understand not only the rewards of nonprofit board service, but also the fiduciary duties that accompany the role.

Board Members Have More Than Advisory Responsibilities

Many first-time board members assume their role primarily involves attending meetings, supporting fundraising efforts, offering strategic guidance, and serving as ambassadors for the organization.

While those responsibilities are certainly important, nonprofit directors also have legal and fiduciary obligations that help ensure the organization’s long-term success.

Every nonprofit board member is generally expected to uphold three core fiduciary duties:

• Duty of Care: Actively participate in board meetings, stay informed, review financial information, and exercise sound judgment when making decisions.
• Duty of Loyalty: Put the interests of the organization ahead of personal interests and appropriately manage any conflicts of interest.
• Duty of Obedience: Help ensure the organization remains true to its mission while complying with applicable laws, regulations, and governing documents.

These responsibilities apply whether a client serves on the board of a small neighborhood nonprofit or a large national organization.

Governance Matters More Than Ever

The nonprofit landscape continues to evolve, bringing increased expectations for transparency, accountability, and governance.

Recent commentary suggests the IRS may revise Form 990 to require additional reporting around government grants, government contracts, and fiscal sponsorship arrangements. While these potential changes are still developing, they reinforce an important principle: nonprofit boards play a critical role in overseeing organizational compliance and financial stewardship.

Helping clients understand these responsibilities allows them to serve with greater confidence and effectiveness.

Questions to Ask Clients Serving on Boards

If a client mentions joining a nonprofit board, consider using the opportunity to start a broader conversation about governance and leadership.

A few thoughtful questions can go a long way:

• Have you participated in a board orientation?
• Do you feel comfortable reading and understanding the organization’s financial statements?
• Have you reviewed the nonprofit’s conflict-of-interest policy?
• Are there any aspects of your board service you’d like to better understand?

These conversations reinforce your role as a trusted advisor while helping clients maximize both their impact and their effectiveness as nonprofit leaders.

The Community Foundation Is Here to Help

At the Community Foundation for Greater Atlanta, we work alongside nonprofits across the region every day. That gives us a unique perspective on effective governance, board engagement, and philanthropic best practices.

Whether your client serves on the board of a local nonprofit, has established a donor-advised fund, or is exploring broader charitable planning opportunities, our team is available to serve as a resource.

Together, we can help clients align their charitable giving, board service, and philanthropic goals with their broader financial, tax, and estate planning strategies—ensuring they make a meaningful impact both in the boardroom and in the community. Reach out to a member of our team.