You’ve begun serving on a nonprofit board, now what? What are some annual actions board members need to be aware of to fulfill their roles & responsibilities?
In case you missed it, Part 1 of Beginner’s Guide to Nonprofit Board Service includes a broad overview of a board member’s basic roles and responsibilities and the importance of board structure.
In this blog, we will dive deeper into topics like board members’ individual roles, serving on committees, board actions, and strategy setting. Read on to learn how to take your board service knowledge to the next level.
Individual Board Member Roles
Individual board members are encouraged to actively engage with meeting materials, participate in robust deliberations, serve on committees, and use their voice. While every voice on the board matters, individual board members only have authority, not power. The board speaks collectively in one voice, via its actions and through its minutes. The full board makes decisions collectively. Those decisions require a quorum of the full board.
Serving on a Committee
In addition to the work done at the board meeting, board work is also carried out via a robust committee structure. The most common committees are:
- Governance committee – Builds and sustains an effective board through recruitment, onboarding, ongoing education, and assessing the board’s performance.
- Finance committee – Supports the board’s fiscal oversight by recommending policies, ensuring accuracy of financial records, and overseeing the budget and independent audit.
- Resource development committee – Guides fundraising strategy and engages other board members to raise contributed income, in organizations that do so.
Oftentimes new board members are asked to serve on committees that align with their skill sets, but board service is also an opportunity to enhance your skills. If there is something you're interested in, you are encouraged to ask to join that committee.
Setting Strategy
It is possible your first year will include the opportunity to participate in strategic planning. If a plan has already been created, you’ll have a chance to review it and advance its goals. Some questions to consider while getting familiar with the strategic plan are:
- Are there any organizational goals that you’re excited about and would like to get work on?
- Is the board receiving regular updates on the progress towards these goals?
- How do these goals help the organization achieve its vision and collective purpose?
Key Annual Actions
Even though strategic planning may not be on the calendar every year, many other things will be. Understanding the board’s role in annual filing requirements and activities is critical to keeping the organization compliant with leading practices in the sector, to the IRS, and to state and local laws.
Examples of annual actions and activities include:
- Evaluating the chief executive’s performance based on previously set goals
- Completing the conflict-of-interest forms and disclosing any conflicts you may have
- Approving the annual budget
- Conducting an independent audit
- Filing the IRS Form 990
- Reviewing and updating key policies, including investment and governance policies
Knowledge Check: When was the last time your board completed an internal assessment? BoardSource’s Board Support Program membership includes a complimentary assessment every year to help your board prioritize what is critical for success.
For organizations that rely on contributed income, board members may also be involved in the annual fundraising campaign and related events. By actively participating in these activities, board members help keep the organization focused, accountable, and mission-aligned. If you’re unsure about what’s expected, ask a fellow board member when these actions take place and how you can contribute.
Ongoing Activities for Nonprofit Boards
In addition to annual activities and responsibilities, boards also have ongoing expectations that happen throughout the year. Some examples include:
- Holding regular board meetings, as aligned with your bylaws
- Engaging in fundraising and resource development
- Holding regular committee meetings
- Engaging in educational opportunities on the organization, the role of the board and board process, or the mission of the organization
It’s important to have a solid foundation and understanding of what is expected of you as a board member. If you’re looking for nonprofit board education, BoardSource offers an on-demand training that covers advanced topics like partnership between the board and the chief executive, purpose-driven board leadership, and creating a board culture that prioritizes equity.
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