Nonprofit boards play an important role in the interaction between an organization and its community. The board establishes the goals, values, and mission for the non-profit. It also has an important oversight and accountability function. The board has to be able monitor how the organization is performing its purpose and achieving its goals. It should develop strategic organizational and fundraising plans and oversee financial management.
It must keep an eye check on the services and programs provided as well as the impact on people by these programs. This requires ongoing monitoring which will allow the board to make changes as needed. Financial oversight involves reviewing budgets and approving them. It also includes ensuring that the company is within its means and that it adheres to all financial regulations. It is the board's fiduciary duty to treat the assets of the company as if they were its own and avoid investing in risky assets.
Fundraising is a crucial part of the board’s duties and it's often the responsibility of each board member to get dirty. It is crucial that the board receives regular, reliable reports on the progress and outcomes of various fundraising campaigns. This will help them make better decisions.
Many boards delegate management tasks to an internal leader. This is typically the chief executive officer (CEO). The Board is responsible for finding this person, set the compensation and conduct annual evaluations for the CEO and board members. The Board should also offer training and orientation for new and current board members in order to aid in their growth.