Ten Responsibilities of Nonprofit Boards

Since I had so many hits on my recent post about Board Evaluation, I thought I’d share Ten Basic Responsibilities of Nonprofit Boards by BoardSource:

  1. Determine mission and purpose. It is the board’s responsibility to create and review a statement of mission and purpose that articulates the organization’s goals, means, and primary constituents served.
  2. Select the chief executive. Boards must reach consensus on the chief executive’s responsibilities and undertake a careful search to find the most qualified individual for the position.
  3. Support and evaluate the chief executive. The board should ensure that the chief executive has the moral and professional support he or she needs to further the goals of the organization.
  4. Ensure effective planning. Boards must actively participate in an overall planning process and assist in implementing and monitoring the plan’s goals.
  5. Monitor, and strengthen programs and services. The board’s responsibility is to determine which programs are consistent with the organization’s mission and monitor their effectiveness.
  6. Ensure adequate financial resources. One of the board’s foremost responsibilities is to secure adequate resources for the organization to fulfill its mission.
  7. Protect assets and provide proper financial oversight. The board must assist in developing the annual budget and ensuring that proper financial controls are in place.
  8. Build a competent board. All boards have a responsibility to articulate prerequisites for candidates, orient new members, and periodically and comprehensively evaluate their own performance.
  9. Ensure legal and ethical integrity. The board is ultimately responsible for adherence to legal standards and ethical norms.
  10. Enhance the organization’s public standing. The board should clearly articulate the organization’s mission, accomplishments, and goals to the public and garner support from the community.

References

What do you think?  Was anything missing from the list?

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About Gary Coiro

Nonprofit & Church Leader Nonprofit Leader and Consultant since 2004, following 15 years as a pastor. Competencies include board development, fundraising, staff development and management, strategic planning, church work, Bible teaching, and capital campaigns. Currently consulting and serving on the Church Ministries Management Team for a large multi-cultural evangelical church.
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One Response to Ten Responsibilities of Nonprofit Boards

  1. I agree with the total list. However, I would like more explanation on item 7 (The board must assist in developing the annual budget). Seems to me that if the board is involved in developing the budget, how would they hold the President and his staff accountable for the budget. Do you really want the Board getting involved at the detail operational level. I hope that I am not reading something into this that is not intended.

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