Nonprofit boards play an essential role in interfacing between an organization and the community. The board determines the goals, values, and mission for the non-profit. It also has an important oversight and accountability obligation. The board is responsible for monitoring the progress of the organization in achieving its mission and reaching its goals. It should devise strategies for fundraising and organizational development and ensure financial oversight.
It must keep a close watch on the services and programs provided, how people are impacted and the outcomes of the programs. This requires constant monitoring, which allows the board of directors to make the necessary adjustments. Financial oversight entails reviewing and approving budgets, as well as ensuring that the company is operating within its means and is in compliance with all financial regulations. The board’s fiduciary duty to treat the assets of the company as if they were its own and to avoid risky investments.
Fundraising is a significant part of the board’s duties and it’s usually the responsibility of individual board members to take on the task. It is beneficial to have regular, reliable information about the progress and effectiveness of various fundraising campaigns to help them make better decisions.
Many boards delegate management responsibilities an internal manager, usually a chief executive officer (CEO). The Board is responsible for identifying this person, set compensation and provide annual evaluations for the CEO and board members. The Board should also provide training and orientation for new and current board members to assist them in their growth.
