The success of a non-profit organisation is contingent on the leadership of its board. In addition to overseeing the overall mission, the board must also ensure that it carries out its fiduciary responsibilities and abides by legal and ethical standards in the way it governs and manages the organisation. To fulfill these responsibilities the board should adhere to the best practices in all areas.
One area of particular concern is the management of donors and fundraising. To aid in these efforts, the board should encourage creativity and unique ideas among its members. It should also be the first to recruit and retain new members. This includes giving a clear description of the role and explaining what it is that they’re getting into. This will help avoid miscommunications and expectations as well as assist in the process of recruiting.
Another important area is ensuring the proper management of funds. Nonprofits can be tax-exempt to meet a public need and the board should be on guard by making sure that every expenditure is justified. The board should also ensure that the CEO’s spending is held accountable and the organization is not spending more than they have.
It’s easy for board members to get focused on the honor of serving their community, and forget that they are in charge of the business, not simply participate in the work. This can manifest in most significant issues, from the decision regarding the hiring of an executive director, or the smallest of details like taking a vote on the price of features services. To avoid this, it’s beneficial for the board to conduct an annual evaluation of its performance and make necessary improvements.
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