NFP Board GovernanceBack in May we posed the question “Do you have the right board members?”

Many NFP’s or clubs have a Board in place but that does not necessarily mean it is effective. In some cases, having the wrong Board members can mean that the decisions being made are not the right ones for the organisation.

Why does the board exist? What is its role?

Our Community says “There are certain basic tasks most boards need to undertake if they wish to be successful. These can be categorised under the following headings:

  • Legal and Financial Accountability
  • Strategic Vision and Objectives
  • Fundraising
  • Advocacy”

So while the NFP board is responsible for monitoring the operations and finances of the organisation, it is also responsible for monitoring the external environment in which the NFP operates.  Is the organisation meeting the right needs for the right people? Is it still current or should it update its mission and purpose?  Is it still worthwhile?

What are the roles of the committee members?

Members of the board aren’t just members; they are Directors and with the role comes responsibility.

For a NFP board to function properly, a description of the roles and responsibilities of the individual directors, the board, chair and management of the organisation must form part of the organisation’s constitution. That’s the only way each office bearer can be sure that he or she is doing what is expected of the role.

The role should have a written description covering responsibilities, skills required, reporting requirements and any other details specific to each role. You can see an example of a role description for a treasurer at DIY Committee Guide.

If the board is clear on its purpose and each member understands what is expected of them in their roles, the organisation has a good chance of becoming effective in what it does.