Boards of directors are an essential resource for nonprofit organizations in a variety index of ways. They fulfill legal responsibilities, but also play an important role in the organization’s strategy, culture and governance as well as financial sustainability. They also serve as advocates and ambassadors.
One of the most important duties is hiring and setting compensation for general managers and CEOs. This is a huge decision that could have an impact on the company’s growth strategy and its growth. It can be difficult to find someone who fits the job.
Another crucial role is overseeing management and monitoring performance and taking a look at risks. This can be accomplished through regularly scheduled meetings and discussions as well as reviewing and setting up policies to manage risk. For example an executive board might create a committee that reviews and evaluates specific projects or areas of the business to ensure that they are in line with the plan and to reduce any risks that could arise.
A board is also accountable for bringing in new talent, and this is accomplished by securing enthusiastic individuals with the appropriate skills and background experience. This also includes the identification and evaluation of potential members for upcoming elections. It’s not an easy process to attract new members, but it’s essential to have a solid board.