The success of a nonprofit organization is dependent on the management of its board. The board is responsible for overseeing the organization’s mission and must also abide by ethical and legal standards as it oversees and manages the organization. To fulfill these responsibilities the board must adhere to the best practices in all aspects.
One area of particular concern is fundraising https://www.boardroomusa.org/what-information-do-board-secretaries-need-to-record and donor management. The board should concentrate on encouraging creativity and innovative ideas from members to aid these efforts. It should also be the primary one to recruit and retain new members. Included in this is a clear description of the job, and what they will be doing. This will help avoid confusion and miscommunication and will help in the process of hiring.
A sound revenue management strategy is another vital aspect. The board should safeguard the tax-exempt status for nonprofits by ensuring that all expenditures are justifiable. This also means that the board needs to ensure that the CEO is held accountable for spending and that they are not allowing the company to spend more money than it has.
It’s easy for board members to become focused on the honor of serving their community, and forget that they are in charge of the organization, not simply participate in the activities. This can manifest in most significant issues, from the decision regarding the hiring of an executive director to the smallest details of the decision-making process for pricing for features services. To avoid this, the board needs to regularly assess its performance and make any necessary changes.