The role of the not-for-profit board
The role of not-for-profit (NFP) boards includes:
- Driving the strategic direction of the organisation.
- Working with the CEO to enable the organisation to obtain the resources, funds and personnel necessary to implement the organisation's strategic objectives.
- Implementing, maintaining and (as necessary) refining a system of good governance that is appropriate for the organisation.
- Reviewing reports and monitoring the performance of the organisation.
- Regularly reviewing the board's structure and composition, so that these are appropriate for the organisation.
- Appointing – and managing the performance of – a suitable CEO.
- Succession planning for the CEO.
While the above points are also applicable to for-profit boards, NFP boards also face a unique range of issues, such as:
- Difficulties in defining and measuring organisational effectiveness.
- Transgression of role boundaries.
- The negative impact of the structural compositions of some NFP boards, including those arising from representative models.
- Funding dependencies and constraints.