Whether you're on the board of a large nonprofit or an all-volunteer organization, you need to have a clear understanding of your role as a board member in contributing to your organization's mission. Legal compliance and financial oversight are certainly on the list of board responsibilities, but they are not enough for effective governance. We believe board members have five primary responsibilities.
Providing strategic leadership, managing for financial stability, Serving as an ambassador for the organization, supporting and supervising the executive director or CEO, and ensuring healthy governance. Keep the board focused on the big picture and oriented to the future. Staff handle more of the day-to-day operations of running the organization.
Let's start with leading strategically. This means you are in charge of the big picture. You are there to develop and communicate the organization's direction, goals, and a plan to get there. Nonprofits will periodically go through the strategic planning process and this can be a time when your board can shine. Along with having a plan, leading strategically includes monitoring and evaluating programs, as well as monitoring outcomes, impact, and performance of the organization.
Financial statements and planning documents are great tools to inform strategic leadership. Next, let's talk about financial stability. It's essential to an organization's viability and success and a big part of your role. No matter your experience with finance, know that every nonprofit business model is different.
Be sure you understand your organization's business model. You'll also need to ensure your organization has adequate infrastructure to create accurate and timely financials. Make sure you can understand your organization's financial reports.
Develop strategies to fund your mission that are realistic. and that support your organization's business model. Lastly, ensure you follow state and federal regulations.
This includes 990 filings, audits, and registration with the Secretary of State and Attorney General. Another very important role you play as a board member is to be an ambassador, an advocate, a superhero even. You are expected to cultivate relationships that are beneficial to the organization's mission and strategic goals.
Participate in fundraising efforts of your organization. This includes donating personally and supporting fund development in other ways, such as sharing fundraising efforts and events with your own network. And remember, the number one reason people join boards is because they were asked. Asking others to participate is part of being an ambassador. Listen to community members'needs related to your mission.
Share the impact of your nonprofit on the community. Learn what tools are available to you. to help tell your organization's story. Next, let's focus on how you support your organization's leader.
Your role as a board includes supervising, supporting, and evaluating the performance of the executive director annually. You'll also recruit and hire the executive director or CEO. You should also have an emergency and long-term succession plan for the executive director.
And, hey, ask the executive director how they want to be supported. Different executive directors need different support from their boards. Last, let's talk about overall governance. When you are a board member, you do have some legal responsibilities.
The duty of care, the duty of loyalty, and the duty of obedience. Duty of care means that as a board, you should be actively participating and attending meetings. Duty of loyalty means putting the interest of the organization first.
If you have a conflict, be sure to disclose it. Duty of obedience means following the law, ensuring compliance, and reviewing bylaws. Your board should also reflect the community you are working within.
That means recruiting and onboarding new board members that represent the full range of backgrounds, views, and experiences in your community. It's also important to have a mix of skills around the table. To keep board engagement up, you have to engage people based on both skills and on where their passions lie. Leading strategically, ensuring financial stability, being an ambassador, supporting your leader, and ensuring healthy governance.
All of these are necessary all the time, but not always in the same dosage. Your focus will shift as your organization evolves. The board and how it spends its time will change over time. Effective boards are an important contributor to nonprofit mission success.
It starts with understanding your roles and responsibilities.