Board Roles and Responsibilities

By Anne Hays Egan

Experts who work with boards have very similar views on the roles and responsibilities of nonprofit and appointed boards.  There are a few basic responsibilities which, when met, create successful long-term leadership.   These basic responsibilities are outlined below.

1. Set the vision and mission for the organization.

The board’s primary task is to develop the broad vision, determine the values, and set and review the mission.  Mission and vision are reviewed regularly in planning sessions.  Strong leaders also have the ability to test new project ideas or business initiatives by asking the ‘mission’ question.  “How does this project further our mission?”  This leadership skill ensures that the agency focused and on-track.

2.Ensure effective organizational planning.

The board ensures effective organizational planning through its own work in strategic planning, and overseeing the organization’s implementation of the strategic plan.  This is reviewed through contact with the ED and the board’s review of reports at its monthly meetings.  Strong board leadership in this area ensures that goals, strategies and an implementation timeline are specific, and the ED is held accountable for implementing the plan.    When the organization faces any major change, whether growth or change in direction, it is the role of the board to see how these changes affect the current plan and how they impact the future of the organization.  It is the board that is responsible for ensuring the programmatic and fiscal solvency of the agency

3.  Hire the executive, provide ongoing support, and review performance.

One of the most important roles of the board is to hire the ED, set standards for performance, and review performance on a regular basis.  Careful tending of this responsibility ensures that the board can remain focused on policy because it is sure that the manager is meeting goals in day-to-day operations.  The board should have a structured process for reviewing the manager’s performance, including a formal annual evaluation.  The President of the Board should meet regularly with the manager to review priorities and operational issues.  The board provides support to the ED by its own commitment to the agency, committee work, and encouragement.  Part of the role of the board is to provide the ED with introductions to other members of the community, including introductions to important social functions.

4.Determine and evaluate programs and services.

Small boards are often involved in shaping and helping manage programs.  However, once organizations grow and become successful, the ED and staff manage the programs while board members focus on the broader issues which ensure long-term success.  These include setting the program goals and priorities, developing stronger community relations activities, and ensuring the long-term success of the agency through a careful balance of revenue-generating venues to offset programs which are cost centers.

5.Ensure adequate resources

Boards are stewards of the public trust.  When an agency is well managed and governed, it meets community needs and is a credit to the region and the state.  When agencies and boards encounter difficulties that could have perhaps been averted, they pose potential political difficulties for individual board members and the agency. Boards are responsible for interpreting the programs of the organization to the community, for ensuring adequate financial resources, and guaranteeing the appropriate use of those resources.  This means that, as organizations grow and develop, the board plays an increasingly strong role in public relations, fund raising, and ensuring that funds raised are put to good use. Board members become more active as ambassadors for the organization with other community leaders, and doing fund raising work in the community. The PR and fund raising work are often handled through the development committee.

6.Monitor the organization’s finances

As stewards of the public trust, boards are required by law to ensure that the organization’s finances are in order.  This requires careful financial planning, budgeting, and review of financial statements.  The ED should be expected to provide timely financial reports with interpretation.  Whenever the organization is having a financial difficulty, such as a shortfall of operating funds, the financial reports should contain accompanying plans for adjustment through a combination of more fund raising and fewer expenditures. Financial planning and fiscal oversight are handled by the finance committee.

7.Review the board’s own performance.

Boards that govern growing organizations find that goal setting, effective committee work to achieve goals, and ongoing evaluation enables the board to make transitions with greater ease.  Self-evaluation is a good practice, and allows board members to see how the board’s performance has affected the performance of the organization as a whole.  Self-evaluation is guided normally by the chair of the board.

8.Serve as a last court of appeal.

As the steward of the public trust, the board is responsible to ensure that the organization is operating in a legally defensible and fiscally responsible manner at all times.  Occasionally, organizations experience personnel or other problems that should be brought to the board.  In all cases, the problem should go through the normal “chain of command.”  In those rare cases where the ED is unable to remedy the problem, it is brought (by the ED or someone else) to the board for final action.  This responsibility should be exercised seldom, and with great care.  Normally, the chair of the board is the contact.