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Effective Nonprofit Boards of Directors

Membership on this board is not power; it is responsibility.

To be effective, a nonprofit needs a strong board, but a board that does the board’s work. The board not only helps think through the institution’s mission, it is the guardian of that mission and makes sure the organization lives up to its basic mission. The board has the responsibility of making sure the nonprofit has competent management—and the right management. The board’s role is to appraise the performance of the organization. The board is also the premier fund-raising organ of a nonprofit organization.

Over the door to the nonprofit’s boardroom there should be an inscription in big letters that says: MEMBERSHIP ON THIS BOARD IS NOT POWER; IT IS RESPONSIBILITY. Board membership means responsibility not just to the organization but to the board itself, to, the staff, and to the institution’s mission. A common problem is the badly split board. Every time an issue comes up, the board members fight out their basic policy rift. This is much more likely in nonprofit institutions precisely because the mission is, and should be, so important. The role of the board then becomes both more important and more controversial. At that point, teamwork between the chairperson and chief executive officer becomes absolutely vital.

ACTION POINT: Have you served on one or more nonprofit organization boards? Have these boards helped fulfill the nonprofit’s mission or frustrated the mission?

Managing the Non-Profit Organization

* Source: The Daily Drucker by Peter F. Drucker

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