The Board of an NPO is to exercise oversight of the organization--over its planning, policies, finances, operations, and management. In order to do this, Board members must be informed about each of these aspects of the organization, as well as its purpose, mission, and goals. There are components of a well-informed Board.
Orientation. The organization should present an orientation to all new Board members. The orientation should teach the new Board members about the purpose, mission and goals of the organization; should give an overview of the organization's staffing structure and programs; should tell the Board member what is expected of Board members; and should outline how the Board works. Typically, Boards have meetings at regular intervals (quarterly, for example). The Executive Director prepares and delivers a "Board packet," which Board members are expected to familiarize themselves with prior to the Board meeting. Orientation should also inform Board members if they are expected to be involved in fundraising events, strategic planning events, budget events, and other Board events.
Board meetings. Attendance at, and participation in, Board meetings are the single most consistent expectations and duties of Board members. A well-run organization will have an Executive Director that provides Board members with a "Board packet" well in advance of the meeting. The Board packet should include an agenda for the meeting and documents pertinent to each agenda item. For example, the current period financials, the language of proposed policies/policy changes, copies of the Executive Director's report and other reports, and other documents related to "action items" and "information items" in the agenda should be supplied to the Board members in the Board packet. Each Board member should review the Board packet prior to the meeting, and so be able to participate fully in the meeting.
Policies. A most important Board function is the adoption and maintenance of policies for the organization. The policies should be collected in a policy manual, or should be accessible on-line, for easy review by Board members. Board members should familiarize themselves with their organization's policies with an eye toward improving them if and as necessary.
Strategic planning; budgeting; and other planning functions. Board members should familiarize themselves with the organization's current budget, current strategic plan, and other current planning documents. When a particular planning process takes place (for example, budgeting should take place annually), the full Board should be involved. Some organizations are "Board driven," where the planning originates with Board members, is introduced to the Executive Director and other staff, and proceeds from there. Other organizations are staff driven, where the Executive Director and other staff originate a plan and then introduce it to the Board for participation and consideration. In either case, it is important that Board members participate fully in the process.
Oversight. Oversight means making sure the organization stays "on task," spends money correctly, has money to operate on, and is well run. Exercising oversight involves more than simple attendance at Board meetings, however. It should also involve financial and operational audit components; questioning of information presented to the Board, questioning the organization's relationship with its banks, clients/customers, partners, and other stakeholders, and being aware of the organization's reputation in the community. (This also includes being an ambassador for the organization in the community.) It is true that accountants will bankrupt an organization by cutting spending vital to the organization; it is just as true that staff will bankrupt an organization by adding program upon program. The Board acts as a sort of referee between the organization's finances and programs, to be certain the organization continues to exist to provide the best services it can given the resources it has.
While this post is not exhaustive, it does describe some of the function of the Board of a not-for-profit organization. If your organization needs assistance with its Board, contact Landy NPO Services, LLC.
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