Boards of directors are a critical resource for nonprofit organizations in numerous ways. They perform legal duties as well as play key roles in organizational culture and strategic focus governance, as well as financial sustainability. They also serve as advocates and ambassadors.
Setting the salary and hiring process for CEOs and general managers is one of the most important tasks. This is a significant decision that could affect the company’s growth and strategy. It isn’t easy to find someone who fits the requirements for this position.
Monitoring management’s performance, and evaluating risk are other essential functions. This can be achieved through regular meetings and discussions and reviewing policies to manage risks. A board could establish an oversight committee to review specific areas or projects to ensure they are running according to plan and to limit risks.
A board is also accountable for bringing in fresh talent and this is accomplished by attracting enthusiastic individuals with the relevant skills and experience. This includes the selection and evaluation of potential members for future elections. It can be a long procedure, but it’s crucial to a healthy board and the overall success of the organization.