The governance of a nonprofit board is vital to the effectiveness of an organization. In addition to overseeing the mission of the organization the board must also ensure that it fulfills its fiduciary obligations and is governed by legal and ethical standards in the way it governs and manages the organisation. To fulfil these obligations the board must follow the best practices across all areas.
The management of donor funds and fundraising are two areas that are of particular concern. To assist in this the board must promote creativity and innovative ideas among its members. It must also role of attracting and retaining new members. This means giving a clear description of the role and explaining what it is that they’re getting themselves into. This will help avoid the confusion of expectations and miscommunications, and aid with the recruitment process.
Another important area is ensuring revenue is managed well. Nonprofits can be tax-exempt to Secure Due Diligence Rooms satisfy a public requirement and the board should be on guard by making sure that every expenditure is justified. The board must also ensure that the CEO’s spending is held accountable and that the company does not spend more than they have.
Board members can be absorbed in the honor of serving the community and forget that they are accountable for the management of the organization. This can manifest in most important issues, from decisions regarding the hiring of an executive director to the smallest details of weighing in on pricing for the feature service. To avoid this, the board needs to periodically review its performance and make any necessary changes.