Nonprofit boards play an essential function in connecting an organization and the community. The board decides on the goals, values, and mission for the nonprofit. It also has a crucial oversight and accountability responsibility. The board must oversee the organization's progress in fulfilling its mission and reaching its goals. It should develop strategic organizational and fundraising plans and provide financial oversight.
It is vital to be attentive in evaluating the programs and services offered as well as the impact on individuals and the results. This requires constant monitoring, which will enable the board of directors to make necessary changes. Financial oversight entails the review and approval of budgets, as well as ensuring that the organization is operating within its means and that it is in compliance with all financial regulations. It is the board's fiduciary duty to manage the organization's assets as if they were their own and to avoid risky investments.
Fundraising is an integral part of the board's duties and it's often up to the board members to roll up their sleeves. It is important that the board receives regular, reliable reports on the progress and outcomes of different fundraising campaigns. This will help them make better decisions.
Many boards delegate management duties to an internal leader, usually a chief executive officer (CEO). The Board is responsible to find the CEO, establish their the compensation and conduct annual evaluations for the CEO and board members. The Board should also set up training and orientation programs for new and existing board members in order to facilitate their development.