According to the Corporation for National & Community Service, a quarter of all U.S. residents donate their time to community service. Board service strikes a chord among those who want to intensify their commitment to a cause and/or leverage skills acquired through years of professional development. That’s welcome news to nonprofits seeking capable, committed leadership to provide that much-needed boost to their mission, programs, and resources. Yet it takes the right people with the right skills and the right understanding of their roles and responsibilities to realize that promise. With that in mind, it’s worth taking a few moments to review the roles and responsibilities of your board of directors.
The board of directors provides strategic leadership for the organization. They set the organization’s direction, adopt policies and procedures, render key strategic and operating decisions, approve budgets, define anticipated program outcomes, oversee performance, and serve as guardians of organizational resources. They are also responsible for monitoring, evaluating, and reporting on the fiscal condition and financial performance of the organization. In short, they are accountable for all actions taken in the name of the organization.
Board members must also meet certain standards of conduct and engagement when dispatching their responsibilities. Nonprofit corporation law characterizes these standards in terms of three duties: