The practice of governance is hard to define, but easy to understand when it isn’t working. Simply put, governance is how a nonprofit organization conducts itself – how it provides strategic direction, how it makes policy and strategy decisions, how it monitors performance, and how it ensures accountability.
Good governance requires pragmatic and compliant policies and by-laws. However, if boards don’t understand their roles and responsibilities, the best written policies and by-laws become ineffective.
Roles and Responsibilities of a Nonprofit Governing Board
The roles and responsibilities of each nonprofit board and its members is, in part, defined or informed by its particular mission, its developmental stage (e.g., founding board, governing board or institutional board), its history and unique circumstances. But there are general criteria for effectiveness that apply to all boards, some collective, some individual, and some shared. These criteria include, but are not limited to:
- how well the board understands and supports the organization’s mission and vision
- how well the board understands (and adheres to) its role versus that of the staff
- the relationship of board members to each other and to the CEO
- the board’s financial acumen of the organization and support for its financial success
A well-governed board recognizes that they have been entrusted with the health and future of their organization. The agency’s reputation and well-being is theirs to promote and protect. As a result, they both understand and execute their roles and responsibilities. Further, they are not complacent but instead constantly evaluate the board and organization’s performance to learn and improve.
How ESC Can Help
Strong productive oversight can maximize the performance of your organization and help you achieve your mission — as well as comply with all legal requirements for fiscal accountability. Our skilled consultants can help your board reach its full potential. We can help you improve governance and board development through restructuring, board recruitment, identifying and training on board member roles and areas of accountability, developing strategies for change management, and creating clear divisions of responsibility between your board, staff and committees.
