www.twoboardroom.com/the-relationship-between-the-ceo-and-the-board-of-directors/
Nonprofit boards play a crucial part in the performance of a charity. But despite their often volunteer status, board members have significant responsibilities that must be fulfilled. Be sure that your board members are aware of their responsibilities upfront by ensuring they have all of the necessary information about what it takes to be an effective board member. By actively communicating with your board members (in person or through remote board management software) You can ensure that they are executing their duties and are demonstrating effective governance.
Boards of nonprofit organizations bear an important role in overseeing the financial aspects of the organization. This includes the approval of a budget, ensuring that the nonprofit is operating within their means, and also establishing fiscal integrity for the organization. It is also about ensuring that the board is fully aware of and well-versed in the financial regulations that apply to their organization. Additionally, it imposes an obligation of fiduciary responsibility to the organization that requires that the board handle its assets as if they were their own.
The board should work in partnership to develop realistic plans that honor the mission of the organization and take into account the requirements of the communities it serves. They should also be aware any potential risks and challenges such as a deficiency of resources or a poor public image.
Each board member is responsible to remain informed by reading reports and attending meetings. They should not be afraid to ask questions or present their own ideas, however it is essential that they do so in a way that doesn’t jeopardize the relationship with management. They should also make sure they are not in a conflict of interest since this would be a violation of the law and their fiduciary duty to the non-profit.