Understanding Board Member Responsibilities in Nonprofits

Overview

• Importance of understanding board member roles in contributing to the organization's mission.
• Legal compliance and financial oversight are essential but not sufficient for effective governance.
• Five primary responsibilities:
  • Providing strategic leadership
  • Managing for financial stability
  • Serving as an ambassador
  • Supporting and supervising the executive director or CEO
  • Ensuring healthy governance

Strategic Leadership

• Focus on the big picture and future orientation.
• Develop and communicate organizational direction, goals, and plans.
• Engage in strategic planning, monitoring, and evaluating outcomes and performance.
• Utilize financial statements and planning documents for informed strategic leadership.

Financial Stability

• Key to organizational viability and success.
• Understand the organization's unique business model.
• Ensure adequate infrastructure for accurate financial reporting.
• Develop realistic strategies to fund the mission.
• Ensure compliance with state and federal regulations (e.g., 990 filings, audits).

Ambassador Role

• Cultivate beneficial relationships and engage in fundraising efforts.
• Donate personally and support fund development through networks.
• Share the nonprofit's impact on the community.
• Use available tools to communicate the organization's story.

Supporting Leadership

• Supervise, support, and evaluate the executive director's performance annually.
• Recruit and hire the executive director or CEO.
• Develop emergency and long-term succession plans.
• Understand different executive directors need varied board support.

Governance

• Legal responsibilities include duty of care, loyalty, and obedience.
  • Duty of Care: Actively participate and attend meetings.
  • Duty of Loyalty: Prioritize the organization's interest and disclose conflicts.
  • Duty of Obedience: Follow laws, ensure compliance, and review bylaws.
• Reflect community diversity in board recruitment and onboarding.
• Maintain a mix of skills and passions among board members.

Conclusion

• Board focus and time allocation shift with organizational evolution.
• Effective boards are crucial to mission success, requiring a clear understanding of roles and responsibilities.