The Role of Nonprofit Boards: Duties and Best Practices

Nonprofit organizations play a vital role in the social, economic, and environmental fabric of our communities. Their success relies heavily on strong leadership, particularly from their board of directors. The board’s role is multi-dimensional, straddling governance, fiduciary responsibility, strategic planning, fundraising, and ambassadorship.

The Role and Duties of Nonprofit Boards

Nonprofit boards are tasked with a variety of responsibilities, all with the primary goal of safeguarding the organization’s mission and ensuring its financial health and long-term sustainability.

1. Governance: The board oversees the organization’s operations and provides strategic direction. This includes developing policies, procedures, and bylaws that align with the organization’s mission.
2. Fiduciary Duty: Board members are legally obligated to act in the best interests of the organization. They must manage the organization’s assets responsibly, ensure financial accountability, and maintain regulatory compliance.
3. Strategic Planning: The board is instrumental in developing the organization’s strategic plan, which outlines its long-term goals and strategies to achieve them. They also monitor the plan’s implementation and adjust it as necessary.
4. Fundraising: Many board members are expected to contribute to the organization’s fundraising efforts, either through personal donations, soliciting contributions from their networks, or organizing fundraising events.
5. Ambassadorship: Board members often serve as the organization’s ambassadors, promoting its mission, programs, and accomplishments within their communities and professional networks.

Types of Nonprofit Boards and Their Distinctions

There are several types of nonprofit boards, each with distinct roles and responsibilities. The most common are:

1. Working Boards: In small nonprofits, board members often assume operational roles due to limited staff resources. They take an active part in day-to-day tasks alongside strategic oversight.
2. Governance Boards: Here, the board focuses on policy-making and strategic planning, leaving the daily operations to executive staff. These boards are common in medium to large nonprofits.
3. Advisory Boards: Advisory board members offer expertise and advice to the organization but don’t have formal legal responsibilities or decision-making power.

Best Practices for Nonprofit Boards

For a nonprofit board to effectively fulfill its responsibilities, certain best practices should be adhered to:

1. Regular Meetings: Boards should meet regularly, with a clearly set agenda. This ensures strategic issues are addressed timely, and decision-making is transparent.
2. Diverse Composition: A diverse board, in terms of skills, experiences, and backgrounds, enriches discussions and decision-making.
3. Board Member Training: Ongoing training and development ensure that board members understand their roles and responsibilities.
4. Regular Board Evaluation: Evaluations help identify areas of improvement, whether it’s the board’s overall effectiveness or individual members’ contributions.
5. Succession Planning: Having a plan for leadership continuity helps mitigate risks associated with sudden departures.

FAQs

Q: What’s the average size of a nonprofit board?
A: The size of a nonprofit board can vary greatly, but the average size is between 15 and 17 members.

Q: How often should a nonprofit board meet?
A: Best practices suggest that nonprofit boards should meet at least quarterly, although many boards meet more frequently.

Q: Can board members be paid in a nonprofit organization?
A: While it’s legal to pay board members for their service in many jurisdictions, most nonprofit board members serve voluntarily without compensation.

Sources

1. Ten Basic Responsibilities of Nonprofit Boards Revised Edition
2. “Board Composition and Recruitment.” BoardSource.