BOARD OF DIRECTOR'S TRAINING PROGRAM

Board of Director's Training Program

Board of Director's Training Program

gBoard of Directors plays a very important role for any organization; as the overall efficiency of the organization is directly effected by their performance. The effective functioning of a Board of Directors is critical to the success of every nonprofit organization. A board of directors is the governing body of a non-profit organization. It has many serious responsibilities, which can be loosely categorized as follows:

Setting the policy for the organization.

This is done by:

Creating or updating the mission and vision statements.

Determining the organization's programs and services.

Approving the strategic plan. (Caffarella, 2001)

2. Monitoring the organization's operations:

Hiring and periodically evaluating the organization's executive director.

Working with and providing support to the executive.

Approving the annual budget, annual report, etc.

Approving major contracts and grants.

Soliciting and reviewing program evaluations.

Troubleshooting as necessary.

3. Serving as a public figure for the organization

Fundraising, by directly donating to the non-profit and soliciting donations from others.

Advocating for the organization.

4. Fulfilling other board responsibilities

Documenting policies and decisions to create an organizational memory.

Preparing for and attending board meetings.

Researching and discussing issues before decisions are made.

Replacing and orienting board members when a vacancy arises. (Caffarella, 2001)

A board of directors also has certain legal obligations, known as duties. While the details may vary from state to state, here are some common legal responsibilities for members of non-profit boards to:

Take reasonable care when making decisions for the organization (called “duty of care”)

Act in the best interest of the organization (called “duty of loyalty”)

Act in accordance with the organization's mission (called “duty of obedience”)

Stand aside when there is a conflict of interest (called “recusal”)

While there a board has many responsibilities, there are also things it should avoid. Basically, board members should avoid being over- or under-involved. More specifically, the board of directors should not:

Concern itself with the day-to-day management of the organization. That is the executive director's job.

Rubber stamp decisions. While the board should take the recommendations of the organization's director, staff, and members into consideration, the board needs to be an independent decision-making body.

Accountability Guidelines

In general, the following guidelines are recommended for nonprofit organizations to reduce liability by strengthening the accountability of the board.

Board Members Should

Attend board meetings regularly

Be familiar with the organization's goals, objectives and programs

Read preparation materials prior to each board meeting so that active, informed participation is assured

Make sure the organization keeps a written, permanent record of all board official actions

Be certain the organization is fulfilling all aspects of its nonprofit and tax-exempt status

Exercise general supervision over the corporation's affairs

Know the budget, budget process and financial situation of the organization

Pursue the warning signs that something is wrong and inquire if there is something you do not understand or if something comes to your attention that causes you to question a policy or practice (Caffarella, 2001)

Insist on meaningful board meetings with full disclosure of operating results

Require the organization to engage ...