The oversight of a nonprofit board is crucial to the success of any organization. The board is responsible for overseeing the organization’s mission and must also abide by ethical and legal standards when it manages and governs it. In order to fulfil these obligations the board must adhere to the highest standards in all areas.

Donor management and fundraising are two areas that are of particular concern. To support these efforts the board must promote creativity and innovative ideas among its members. It should also charge of attracting and keeping new members. This includes giving a clear description of the job and describing what they’re getting themselves into. This will prevent miscommunications and expectations as well as assist in the process of hiring.

Another crucial aspect is making sure revenue is managed well. The board should safeguard the tax-exempt status that nonprofits enjoy by ensuring all expenditures are justified. The board must be sure that the CEO’s spending is held accountable and the organization is not spending more than they have.

Board members can be consumed by the responsibility of serving the community, and forget they’re in charge of the business. This can manifest itself in most important issues, from decisions about the hiring of an executive director, or the smallest of details like weighing in on pricing for the feature service. To avoid this, the board must regularly evaluate its performance and make any necessary improvements.

https://www.boardroomusa.org/nonprofit-board-governance-models