Nonprofit boards play an important role in establishing a relationship between an organization and the community. The board determines the mission, vision and values for the non-profit. It also has a crucial oversight and accountability obligation. The board has to monitor the progress of the organization’s efforts in achieving its mission and achieving its goals. It must devise strategies for fundraising and organization and oversee financial management.
It must keep a close eye on the programs and services offered, how people are impacted by those programs. This requires ongoing monitoring that will allow the board to make adjustments as necessary. Financial oversight includes reviewing budgets and approving them. It also includes ensuring that the organization is within its means, and that it complies with all financial regulations. The board has a fiduciary obligation to treat its assets as if they were their own and avoid the risk of investing in a risky way.
Fundraising is an integral part of the board’s duties, and it is often the responsibility of individual board members to take on the task. It is beneficial for the board to have regular, reliable reporting of the progress and success of different fundraising campaigns to aid them in making better decisions.
Many boards delegate management responsibilities an internal leader, which is typically a chief executive officer (CEO). The Board is responsible for selecting the CEO and establishing the compensation of this person, as well as conducting annual evaluations of the CEO and individual board members. The Board must also establish sessions for orientation and training for current and new board members to aid in their expansion.
