The board of directors of a nonprofit can either be the making or breaking of an organization. The board of directors establishes the tone for the organization’s governance, management of resources, and ensuring that the mission is on track. But the reality is that many boards of directors operate without a clear understanding of the skills needed by their members. Here’s what every successful nonprofit board member needs to bring to the table.
1. Strategic Planning
Successful board members think beyond the present circumstances. Strategic planning is the process of establishing a long-term vision, organizational priorities, and ensuring that all major decisions are in line with the mission. Successful board members in this aspect help the leadership of the organization avoid being short-sighted, keeping the organization committed to the mission despite the circumstances.
2. Financial Literacy
Financial literacy is the process of understanding budgets, financial statements, and fiduciary responsibilities. This is not negotiable. Members of the board of directors do not have to be accountants, but they have to ask the right questions. Can the organization finance six months of operating costs? Are program expenditures in line with strategic priorities? Financial literacy enables board members to fulfill their fiduciary duty of protecting the organization’s resources and long-term sustainability.
3. Governance and Leadership
Healthy organizations have healthy boards. Governance acumen is the process of understanding the distinction between the roles of the board and the roles of the staff, managing conflict of interest, and building a culture of accountability. Successful board members in this aspect set the tone for the behaviors they want to see in the organization – transparency, integrity, and a real passion for the mission. This aspect is the foundation of all other aspects.
4. Fundraising and Resource Development
Fundraising is not the development team’s job alone. The board of directors is an essential part of building a steady stream of income, whether that comes from personal donations, networking, or fundraising efforts. The most effective board members recognize that resource development is a relationship-building process, not a one-time event. Staying in touch with donors and funders is an effective way to build the trust that keeps the money flowing.
5. Legal and Compliance Issues
Nonprofits are governed by a complex set of regulations, from tax laws to employment law to grant regulations and beyond. Board members do not have to be lawyers, but they should have a basic understanding of the regulations that apply to nonprofit organizations. This is a protection against risk and also helps to build integrity with funders and the public.
6. Advocacy and Ambassadorship
The board of directors is the face of the organization in the community. Effective advocacy requires communicating the nonprofit’s mission, building public trust, and influencing policy when necessary. As ambassadors, board members provide access to partnerships, media, and community resources that staff members alone cannot provide.
Continuous Learning Is the Foundation
No board member is born with all the skills. The difference between a strong board and a weak board is the commitment to learning and development. Board development training for nonprofits, self-evaluation, and openness to new ideas and perspectives will strengthen the board.
Boards invest in development because it is a high priority, not a luxury. The stronger the board, the stronger the mission
