The Key to an Excellent Nonprofit Board is Care
Make no mistake, a nonprofit board can make or break an organization. But being on a nonprofit board that cares becomes an exercise in mutual growth between the organization and its board members, and that is arguably why it is so rewarding. Care is a superpower on nonprofit boards. Perform your board duties with collective care and you may well see the organization thrive and its mission make impactful gains. Ignore the basics and you risk organizational stagnation, if not decline.
What I mean when I say care is not just the “duty of care” (although that is a critical duty of nonprofit board members). It is the individual desire to see organization to thrive, and the follow-through both in fulfilling formal duties and bringing your own knowledge and experience to the discussions and decision making as a collective invested in the mission. True care does not take significant time; it takes targeted collective understanding and action.
There are formal requirement, and important good governance practices that board members should know and practice. First, all board members are legally required to perform three duties.
The Duty of Care: know and participate in the nonprofit as a board member with the same care you exercise in your professional and personal life.
Ensure that your nonprofit is operating in compliance with the law.
Actively participate in meetings and decision-making (and if you have to miss any meetings, get the minutes and provide input/ask questions as needed).
Stay familiar with the organization’s activities and publications.
Ensure good internal controls and policies are in effect in the organization.
Review the executive team.
The Duty of Loyalty: act in the interest of the nonprofit.
Ensure there are no conflicts of interest in your participation; have and sign the nonprofit’s Conflict of Interest policy.
The Duty of Obedience: make sure that the nonprofit is in compliance.
Ensure that your nonprofit is following its mission and that funds are dedicated to the execution of that mission.
Comply with all state and federal laws and regulations.
Provide copies of filed 990s to the public (as required).
Resources for Further Reading:
https://ag.ny.gov/sites/default/files/regulatory-documents/Right-From-the-Start.pdf
https://boardsource.org/resources/legal-duties-nonprofit-board-members/
In addition to those three duties, nonprofit boards should ensure that their structure ensures paths for good governance to take place. A well-functioning board has, at a minimum, assigned key positions that ensure it can function efficiently and effectively. These roles include a board president, board secretary, and board treasurer. Committees play a crucial role in targeting and enacting key board business efficiently. Having an executive committee and finance and fundraising committee can ensure board business gets the care and attention it needs, while utilizing the expertise of board members in each area without taking up the entire board’s attention.
Finally, boards should maintain key governance documents. Namely the bylaws that guide an organization’s governance structure and functions, a conflict of interest policy that is signed annually by all board members and staff, and a board orientation book that includes information on the organization and the board for both new and existing members. As a nonprofit develops, boards should ensure that organizations create and maintain strong policies and procedures, including financial policies and procedures, fundraising policies, operational policies, and HR handbooks.
These formal duties and good governance practices form the bones of a good board, but the “meat” of care is making sure that you and your fellow board members are bringing your collective strengths and resources to the table to oversee your nonprofit. Board members bring different backgrounds and expertise to the board, and it is incumbent upon caring boards to fill in any areas where expertise is needed. Maintaining a board matrix helps the board identify where board weaknesses can be plugged by new members with key expertise and experience.
As your nonprofit evolves, a caring board with shepherd it along through sustainable and future-ready governance. The answer to effective governance? Have a board that cares.
