5 Responsibilities of the Board of Directors

The roles of the board of directors:

In the not-for-profit industry there are many misconceptions about the board of director’s role. First of all, all members of the board of directors have to be volunteers. Those volunteers have agreed to carry out the mission of that particular organization. It is the responsibility of the executive director to keep the relationship between the board and the organization healthy.

The five main responsibilities of the Board of Directors include:
Maintaining the mission
Developing long term plans
Financial stability of the organization
Developing policies and procedures
Building a supportive network and atmosphere

Maintaining the mission
It is the responsibility of the Board to ensure the direction of the organization. With that in mind the mission is the symbol of what the organization stands for with out a mission there is no organization. But over time organization can lose focus, direction, or support. A strong Board can make the difference between a growing organization and a shrinking organization. Over time the mission of the organization may be met (ex: curing cancer) what happens when the cure for cancer is found? It is up to the board to help redirect the new mission of the organization. Most missions theoretically could be met but will never be accomplished, over time the board may narrow down the mission or change the direction of the organization to provide focus.

Developing long term plans
Now that the mission has been established by the Board where to they go from here? Long term plans and goals. Goals are formed in the progress can be measured. Goals are to an organization what a map is to a vacation. In the same way a map tells you when you’re on the right track so do the goals the board set. Lastly, the board evaluates their long term plans to determine where they are at on the map, and to see if the organization needs to take a different path to end up at the mission.

Financial responsibility
It is the responsibility of the board to maintain good financial standings, and many times that means digging deep into their own pocket first. In an organization where a board provides direction how can anyone honestly believe that a board member is serious and committed to organizations success if they can’t put some money into help. If they don’t donate they should not be on the board. Donations are not the only thing financial responsibility means, when organizations have large sums of capital it is important to manage that responsibility, the board should approve budgets and keep an eye out for fraud and embezzlement. The Organization should be able to meet financial goals the board determines in their five year cash flow projections.

Developing policies and procedures
Policies and procedures reduce risk, and improve productivity. Getting the board involved in setting policy is one of the most important keys to meeting goals. Policies and procedures reduce the amount of discrepancies with in a company. The policies the board usually set revolve around legal and personnel issues.

Building a supportive network and atmosphere
It is not usually thought much about but the working atmosphere is important to the long term success of an organization. With out the correct atmosphere turnover rates skyrocket and the company spends countless hours and dollars training new employees. Not only is the atmosphere important to the success of the board and the organization, the network of who the board knows becomes important. Many times building a strong organization starts with a strong network of people. When the board members are firmly grounded in the community, the community allows the organization to influence to the people.