The success of a non-profit organisation is contingent on the leadership of its board. In addition to overseeing the organization’s mission the board must also ensure that it fulfills its fiduciary obligations and is governed by legal and ethical standards in the way it oversees and runs the organization. To fulfill these responsibilities the board should adhere to the best practices in all areas.

The management of donor funds and fundraising are two areas that are of particular concern. To assist in this the board should encourage innovation and creativity among its members. It should also be the first to recruit and retain new members. This means providing a clear definition of the role and explaining what it is that they’re entering into. This will help to avoid the confusion of expectations and miscommunications, and aid in the process of hiring.

Another crucial aspect is making sure the management of revenue is well. The board should safeguard the tax-exempt status that nonprofits enjoy by ensuring that all expenditures are justifiable. The board should ensure that the CEO’s spending is accountable and that the business does not spend more than they can afford.

It’s easy for board members to get obsessed with the honor of serving their community, and forget that they’re in charge of the business and not just take part in the activities. This can be seen in the most important areas, such as the selection of an executive director to the smallest issues like weighing in on the cost of a service. To avoid this, it’s important for the board to conduct regular reviews of its performance, and make any necessary adjustments.

https://www.boardroomusa.org/what-information-do-board-secretaries-need-to-record