Boards of directors are a critical resource for nonprofit organizations in numerous ways. They perform legal duties but also play a major role in the organization’s strategy, culture and governance as well as financial sustainability. They also act as ambassadors and advocates.
Hiring and setting compensation for CEOs and general managers is among the most important duties. This is a major decision that can have a direct impact on the company’s growth and strategy. It can be difficult to find someone who fits this job.
Another key function is overseeing management, monitoring performance and taking a look at risks. This can be done through regularly scheduled meetings and discussions, as well as reviewing and establishing policies to manage risk. A board may set up a committee to look over and evaluate specific projects or areas to ensure they’re going according to plan, and to reduce the risk.
The board’s responsibility also involves the need to attract new talent. This oversee vs manage can be done by identifying individuals who are committed and possess the required expertise and experience. This involves the identification and evaluation of potential members for future elections. It can be a long process, however it is crucial to a healthy board and the overall success of the organization.