August 2021 News Building Better Boards

Few things are more critical to your nonprofit’s success and sustainability than an effective board of directors.

To successfully manage your board you want to do three things:

  1. Tell your board members exactly what is expected of them.
  2. Give them the tools to lead effectively.
  3. Make sure they know they are appreciated and making an impact.

1 – Expectations

The foundation for a great board begins with clear expectations of board service. Best practices require a robust board contract that details the expectations of service from giving, to volunteering, to attending events. The best board contracts are as explicit as possible.

Board members should be provided with a clear job description, orientation to the work of the organization and ongoing training, and should fully understand their roles and responsibilities to the organization and to the public.

Board members should understand the content and significance of the organization’s financial statements and audit.

Boards should hold quarterly meetings (at a minimum) and expect regular attendance of members.

Board members are responsible for keeping suitably informed so they can actively participate in decision making.

Boards should organize committees as needed to effectively structure their roles and responsibilities.

Nonprofit board members are responsible to make decisions in the interest of the organization and no other party, including themselves. Each board should have a conflict of interest policy that includes a disclosure form, which is signed by board members annually, and procedures for managing conflicts of interest and handling situations in which public and private interests intersect.

Nonprofit board members are responsible for upholding the organization’s mission and using its resources wisely and in accordance with the law.

Board members are responsible for fully understanding their legal and fiduciary obligations and carrying out their responsibilities in the following areas: Planning, Policy approval, Annual review of the executive director’s performance, Setting of compensation structure, Fundraising, & Financial management.

The board of directors, led by the board chair, should annually evaluate itself through a survey to the board members and a subsequent discussion of the results with an eye toward improving governance practices.

Board members should receive no monetary compensation for their board duties other than reimbursement for board-related expenses.

2 – Tools

Making the board comfortable with fundraising is very important. Remember that fundraising has negative connotations to many, many people, but most feel good about philanthropy, so use this knowledge. Asking a stranger to open up their wallet and write a check can sound scary. Spending quality time getting to know a community leader or entrepreneur, and what they are passionate about sounds like a lot more fun. Changing the board’s attitude (and maybe your own) is essential to being effective. Read more in Fundraising Is Not Just About Money.

3 – Recognition and Appreciation

The end goal is to inspire passion for your mission in every board member. Studies show that passion rubs off on others and increases their happiness levels, and is also one of the primary traits making leaders successful. Read more in Recognizing the Board.

Learn more in the Leadership: Governance, Board Policy & Volunteerism class. Click here for the yearly schedule to find the next class.

SOURCES: Bloomerang blog
Florida Association of Nonprofits WZ New! Newsletter
Florida Association of Nonprofits Principles and Practices
Rachel MuirMakeover My Board

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