Best Practices for Board Management of Nonprofit Organizations

The success of a non-profit organization is determined by the governance of its board. The board is responsible for overseeing the mission of the organization and must also abide by legal and ethical standards when it oversees and manages the organization. To meet these obligations the board must be able to follow the best practices in all areas.

The management of donor funds and fundraising are two areas of particular concern. The board should concentrate on fostering creativity and unique ideas from members to support these efforts. It should also be the one to find and keep new members. This includes giving a clear description of the job and describing what exactly they’re getting themselves into. This will help to avoid confusion and miscommunication and will help in the process of securing a job.

Another important area is ensuring the revenue is properly managed. Nonprofits are given tax-exempt status to fulfill a public need and the board should be vigilant in protecting this by making sure that every expenditure is justified. The board must be sure that the CEO’s spending is accountable and the organization does not spend more than they have.

Board members can be overwhelmed by the privilege of serving the community and forget that they are responsible for running the organization. This is evident in the most important aspects like the hiring of an executive director to the smallest things such as weighing in on pricing of a particular service. To avoid this, the board must regularly evaluate its performance and make any necessary adjustments.