The success of a non-profit organization is determined by the governance of its board. The board is responsible for overseeing the mission of the organization and must also abide by ethical and legal guidelines when it oversees and manages the organization. To help ensure these duties, the board should follow the highest standards in all areas.
One area of particular concern is fundraising and donor management. To aid in these efforts the board must promote creativity and innovative ideas among its members. It should also be the one to attract and keep new members. Included in this is an explanation of the function, and what they will be doing. This will avoid mistakes and confusion, and also assist in the process of securing a job.
Another crucial aspect is to ensure that the proper management of funds. The board should safeguard the tax-exempt status that nonprofits enjoy by ensuring that all expenditures are justified. This also means that the board needs to ensure that the CEO is being accountable for their spending and that they are not allowing the organization to spend more than it has.
Board members can easily become absorbed in the honor of serving their community and forget they’re responsible for running the organization. This can be evident in most important issues, from decisions regarding the hiring of an executive director to the smallest details of the pricing of an item of service. To avoid this, the board must regularly review its performance and make any necessary improvements.