Final answer:
The board of directors of a nonprofit organization establishes policies for the agency but they are not financially responsible for the organization.
Step-by-step explanation:
The subject of this question is Business and it is suitable for High School.
A board of directors of a nonprofit organization establishes policies for the agency. However, they are not financially responsible for the organization. This means that while the board of directors sets the direction and strategy for the organization, they are not personally liable for any financial losses incurred.
For example, if a nonprofit organization incurs debt or faces financial difficulties, it is the responsibility of the organization as a whole, not the individual board members, to address these issues and find solutions.