Your Organization’s Board
The board of directors is critical to the success of any nonprofit organization. It can provide clear direction, access to resources and credibility in the community. The board can ensure that your organization will provide effective services now and in the future. Your organization achieves its full success with an effective board of directors.
When a nonprofit organization is formed, the initial cadre of supporters often becomes its first board of directors. It is the board's responsibility to see that the organization is carrying out its mission in a manner that is ethical, effective and economically sound. At this point, the organization is no longer the sole responsibility of its founders; the board of directors becomes legally responsible.
Board Size
The ideal size for each board will depend on the specific needs of the organization. The board should be large enough to represent broad-based community support and expertise, but small enough to be efficient.
Most nonprofit organizations have discovered that a board size of 12 to 18 members provides a useful cross-section of skills and expertise while remaining a manageable size. This number of directors affords an adequate workforce and offers broad community representation and talent to the organization.
The founders should discuss what the desirable age, ethnic, gender and geographic representation are for the board in light of the organization's mission. The potential board member should represent his/her constituency and demonstrate other needed skills. It is not necessary that a prospective board member carry a "title" or be a figurehead in the community.
What a Good Board of Directors Does
from The Volunteer Board Member in Philanthropy, National Charities Information Bureau
1. It inspires and leads. All three groups—contributors, intended beneficiaries and the public—need knowledgeable and dedicated leadership.
2. It recognizes that it needs a devoted and energetic staff head as a partner. It formulates with care the job qualifications required and selects the best person available. It then calls upon him or her to lead the organization jointly with it and to serve as administrator of its staff and program. The selection and termination of the staff head is generally the most important decision any board makes.
3. The board provides consultation, advice, supervision and encouragement. When the staff head presents a position that is right, the board defends it; but when the position is in error, the board corrects the staff head.
Many an inexperienced staff head has blossomed into a first-class administrative executive under the wise and patient guidance of conscientious board members. But the board does not interfere in the day-to-day administration of the agency, which is the responsibility of the staff head.
4. It identifies priority needs, short-term and long-term goals, and what it, as a volunteer organization, should and should not attempt to do.
5. It assures that its agency cooperates with other groups, governmental and voluntary, which are working toward the same or similar goals.
6. It encourages experimentation to find better methods to achieve its goal.
7. It establishes a procedure for the selection of new board members and for their orientation and training. A number of boards establish an automatic rotation system to assure infusion of "new blood" and the dropping of inactive members.
Above all, the good board avoids "letterhead" trustees (prominent individuals who lend their names for prestige or fund-raising purposes) without undertaking to really serve. Being a board member is a serious and specific legal responsibility that requires time, thought and work.
8. It searches out and uses sources of information and guidance that may help it to improve the discharge of its responsibilities.
9. A good board organizes itself and staff for optimum production. A few of the methods include the following:
· Carefully selecting officers with a wide range of insights and expertise
· Holding a minimum of three, preferably five or more, well-spaced meetings
· Formulating agendas that are focused; making decisions by majority vote
· Giving policy guidance to the staff head and assigning him or her full responsibility for administration
· Appointing subcommittees to deal with specialized areas
· Making a full and honest report to the public each year on the successes and failures of the organization's program and financial operations
· Choosing an independent auditor to assure that financial matters are properly handled
· Reviewing the organization's financial statements to assure that they are accurate and consistent with other philanthropic organizations in the same field.
Board and Staff Roles
from Building and Maintaining an Effective Board of Directors, Center for Nonprofit Management in Southern California
BOARD ROLES
Legal
Exercises fiduciary role to ensure that the organization is properly managed; the board should have a mechanism to validate information from the executive director. Maintains corporate status; ensures proper paperwork is submitted to governmental agencies.
Financial/Accounting Reviews
Financial and business dealings to protect the organization from lapsing into private foundation status and exercises proper judgment in self-dealing transactions. Approves annual budget. Reviews periodic financial reports (balance sheet, income statement, changes in financial position). Ensures that proper internal controls are in place.
Planning
Establishes mission and program direction. Reviews program plan and progress; conducts or reviews program evaluation plan.
Policy
Sets policy.
Personnel
Adopts/reviews personnel policies. Hires executive director and evaluates performance. Sets salary and compensation levels.
Resource Development
Establishes and determines feasibility of fund-raising goals. Participates in fund raising.
Board Governance
Recruits new board members.
STAFF ROLES
Legal
Provides information to the board demonstrating that the organization is well organized. Compiles information for annual filing requirements.
Financial/Accounting
Signals if any of these situations are likely to occur: the organization is in danger of lapsing into private foundation status or proper judgment has not been exercised in self-dealing transactions. Prepares annual budget with input from staff and accounting department (depending on size of the organization). Oversees preparation of periodic financial reports. Implements proper financial controls.
Planning
Develops specific program goals and objectives based on the board-specified mission. Develops reports or oversees staff development of reports to demonstrate program progress.
Policy
Implements policy (specific operational decisions are the staff's responsibility).
Personnel
Implements personnel policies. Hires all other personnel and evaluates performance of staff members, or delegates to appropriate supervisor.
Resource Development
Conducts research and assists in fund-raising efforts.
Board Governance
Proposes general names.
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