Ten Basic Responsibilities of Nonprofit Boards



Ten Basic Responsibilities of Nonprofit Boards

This information is taken from Board Source and Booklet #1 of the Governance Series by Richard T. Ingram. See

1. Determine the organization’s mission and purpose. The Board creates and reviews a statement of mission and purpose that articulates the organization’s goals, means, and primary constituents served.

2. Select the Chief Executive. The Board takes the lead role in defining the chief executive’s responsibilities and then seeking, identifying and selecting the executive director.

3. Provide Proper Financial Oversight. The Board reviews and evaluates annual and long-term budgets and finances to ascertain that the organization’s funds are managed and expended in a fiscally sound manner. The Board monitors reserve funds and endowments and ensures appropriate audits.

4. Ensure Adequate Resources. The Board plays a vital role in setting fundraising goals and then engaging in fundraising activities to identify, cultivate, and solicit funding sources to support operations and programs. All Board members should make an annual gift aligned with their means.

5. Ensure Legal and Ethical Integrity. The Board is ultimately responsible for adherence to legal standards and ethical norms, protecting the organization from legal action and safeguarding the organization’s integrity in pursuit of its mission.

6. Ensure Effective Organizational Planning. The Board collaborates with staff in long-range strategic planning, financial planning, and annual operating planning to ensure there are objectives and goals that can be measured and accomplished.

7. Recruit and Orient New Board Members and Assess Board Performance. The Board substantively reviews its own performance and engages new Board members to ensure its long-term capacity to carry out its responsibilities and pursue the organization’s mission.

8. Enhance the Organization’s Public Standing. Board members ensure an ambitious public relations program to ensure an accurate and healthy public image for the organization.

9. Determine, Monitor, and Strengthen the Organization’s Programs and Services. The Board reviews, approves, and evaluates programs to ensure that the mission, purposes, and goals of the organization are being executed in a sound manner.

10. Support the Chief Executive and Assess Their Performance. The Chief Executive needs consistent moral and substantive support from the Board through clear expectations, periodic assessments, guidance and constructive feedback.

Ensure Legal Accountability and Effective Planning

Here are examples of the types of policy questions Boards should βε ποσινγ:

1) Take reasonable care when making decisions for the Chapter:

▪ Come to meetings prepared – read the board packet, research the issue;

▪ Be willing to challenge yourselves and others – try look at all sides of a decision;

▪ Ask “what if” questions;

▪ What is a “worst case scenario” – what do we do to avoid this?

2) Act in the best interest of the Chapter::

▪ Set up the chapter for success – will it be successful pursuing this strategy?

▪ Does the chapter have the capacity to do this well?

▪ Will this goal help build our capacity to take on larger goals next year?

▪ Will this goal/program enhance our chapter’s reputation?

▪ Is this a reasonably cost-effective way of advancing our goals?

3) Act in accordance with the Chapter’s mission:

▪ Does this program truly advance our goals?

▪ Is this going to make a real impact in advancing our mission?

▪ Will this program sharpen our priorities?

▪ Can this program, if successful, be replicated in the network?

4) Stand aside when there is a conflict of interest:

• Wow, my company could do that marketing job – could I bid on it?

• My friend could get that contract for this energy-efficiency installation.

What Does an Audubon Chapter Need From Its Board Members?

The following is a general list of what nonprofits need from their Boards to be effective:

Commit Time:

o Attend Board orientation, retreats, and training sessions

o Attend Board meetings (weekly, monthly, quarterly?)

o Serve on at least 1 committee (more? - # of meetings?)

o Complete assignments and prepare for meetings

o Volunteer to advance key projects

Participate:

o Participate in Board fundraising activities

o Make a financial contribution to the Chapter to the best of your ability

o Participate in meetings and ask appropriate questions:

o Take reasonable care when making decisions for the organization;

o Act in the best interest of the nonprofit;

o Act in accordance with the mission; and

o Stand aside when there is a conflict of interest (formally recuse yourself from voting for something that would benefit you, a family member or close friend, or another organization you are closely tied to).

o Participate in the on-going tasks of the Board

o Act as an advocate for the Chapter to the constituents and the public

Prepare:

o Be willing to learn about the Chapter’s purpose, history and needs

o Keep current on the external and internal trends affecting the Chapter

Share Skills, Experience, Contacts and Enthusiasm

o Chapters need individuals with specific skill sets such as legal, accounting, investing, land use zoning, policy, etc.

o Chapters need individuals with diverse perspectives and contacts with constituents throughout the region.

o Chapters need people who have wisdom based on their experience and connections that can help guide good decisions

o Chapters need people who are enthusiastic about the mission.

What Do Board Members Need From Nonprofits?

What every Board member needs to feel productive obviously varies greatly with each individual. Nonetheless, Board Chairs and Executive Directors should be taking the pulse of how their Board members feel about participating on the Board and making a difference for the Chapter. The following is a general list of what makes Board members productive and content.

❑ Directors and Officers Insurance (D&O)

❑ Clearly defined roles and responsibilities re Board vs. volunteer role

❑ Orientation and training necessary to enhance the effectiveness

❑ Materials provided in advance of meetings where decisions will occur

❑ Clear process for making decisions

❑ Timely and accurate financial reporting

❑ Efficient use of their time

❑ Amiable and respectful relationships with other Board members

❑ Celebrations of successes and recognitions of Board leadership

What else would energize you as a Board member?

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What do Potential Board members do?

1. Check out your website.

2. Talk to current, past Board members – or friends who know friends…

3. Attend an event/s

4. Look at your tax returns at . 

5. Get a copy of your Articles and Bylaws and your 990 (a tax form for organizations exempt from income tax). 

6. Make sure you have D&O insurance

7. Ask to sit in on a Board meeting.

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