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https://www.boardroomusa.org/nonprofit-board-governance-models
The success of a nonprofit organization is determined by the governance of its board. The board is responsible for overseeing the mission of the organization and must also adhere to ethical and legal standards when it governs and manages it. To meet these obligations the board must follow the best practices across all areas.
Donor management and fundraising are two areas of particular concern. To aid in these efforts the board should promote creativity and innovative ideas among its members. It should also be the first to attract and keep new members. This includes providing a clear definition of the job and explaining what it is that they’re getting themselves into. This will avoid confusion expectations, as well as aid the process of recruitment.
Another crucial area is making sure that the proper management of funds. Nonprofits are given tax-exempt status to meet a public need and the board should be on guard by making sure that every expenditure is justifiable. The board should also ensure that the CEO’s spending is accountable and the organization is not spending more than they have.
It’s easy for board members to become focused on the privilege of serving their community and forget that they’re there to govern the organization rather than just be a part of the work. This is evident in the most important areas, such as the selection of an executive director, to the smallest things such as weighing in about the price of a service. To avoid this, the board must regularly assess its performance and make any needed changes.