Nonprofits
Everything you need to know about board management.
Nonprofit board governance
Governance is the process of providing oversight and accountability to ensure organizations fulfill their mission and cultivate long-term sustainability. For nonprofits, ensuring good governance usually falls to the board.
Good nonprofit board governance practices should cover the functions of both your organization and the board itself. To make sure your board is practicing good governance, there are a few main practices to follow:
Make sure that all programs and initiatives are focused on your organization’s mission
Follow the latest nonprofit regulations and legislation
Participate in annual strategic planning
Provide transparent information about your budget, finances, and donations
Keep sensitive data confidential and secure
Review and approve your IRS Form 990
Create an executive compensation policy and complete an annual review of your organization’s leadership
Provide high-level oversight, guidance, and support to your staff (without overstepping boundaries or micromanaging)
Outline roles and responsibilities for each board member
Foster a culture that encourages open conversation and welcomes diverse points of view
Conduct annual board assessments
While your board is obligated to fulfill these responsibilities, not all boards practice equally good governance. The key is building a board made up of people who are as focused and passionate about your organization’s success as you are.
Nonprofit board governance
Governance is the process of providing oversight and accountability to ensure organizations fulfill their mission and cultivate long-term sustainability. For nonprofits, ensuring good governance usually falls to the board.
Good nonprofit board governance practices should cover the functions of both your organization and the board itself. To make sure your board is practicing good governance, there are a few main practices to follow:
Make sure that all programs and initiatives are focused on your organization’s mission
Follow the latest nonprofit regulations and legislation
Participate in annual strategic planning
Provide transparent information about your budget, finances, and donations
Keep sensitive data confidential and secure
Review and approve your IRS Form 990
Create an executive compensation policy and complete an annual review of your organization’s leadership
Provide high-level oversight, guidance, and support to your staff (without overstepping boundaries or micromanaging)
Outline roles and responsibilities for each board member
Foster a culture that encourages open conversation and welcomes diverse points of view
Conduct annual board assessments
While your board is obligated to fulfill these responsibilities, not all boards practice equally good governance. The key is building a board made up of people who are as focused and passionate about your organization’s success as you are.