GOVERNANCE RESPONSIBILITIES

The Board is ultimately responsible for setting the organization's strategic direction. To ensure this, the best Boards schedule a strategic planning session annually, developing a Plan of Work  for the year that addresses strategic priorities to serve the mission.

The Board is ultimately responsible for ensuring the organization serves its mission and purpose. An easy way to keep the mission top of mind in Board discussions and deliberations is to print the mission at the top of every Board meeting agenda. Encourage a culture that encourages Board members to challenge ideas that do not directly serve the mission.

The Board is ultimately responsible for the financial health of the organization. This means that Board members commit to an annual financial contribution and actively support resource development efforts.

FIDUCIARY DUTIES

Duty of Care: Board members must act as a reasonably prudent person would act under similar circumstances. Board members come to meetings informed and prepared to act. They commit to being active and informed.

Duty of Loyalty: Board members put the interests of the organization above their own. They understand and sign an annual Conflict of Interest Statement. A good rule of thumb is to include the current IRS Form 990 definition of conflict on the statement.

Duty of Honesty: Board members ensure the organization follows and conforms to regulatory bodies and it follows its own Bylaws in its Board management. Consider reviewing and updating bylaws every 3-5 years.

These duties are likely spelled out in your organization's Director and Officer Liability Policy...which, of course, you have in place!

  
Plan now to attend the Governance webinar on March 14 to learn more. Sign up now ... pay one registration fee ... get passwords for up to 5 Board members.