The ability of a nonprofit organization to accomplish substantial impact is widely attributed to board performance. The roles and responsibilities of the board of directors are demanding. While serving as fiduciary leaders, they must also demonstrate leadership in attaining an organization's goals and objectives. At the same time, they must fight for a continually diminishing pool of funding. Effective leadership is the most critical ingredient in the success of a nonprofit entity. However, what effective board performance means, what constitutes it, and how to achieve a useful board are still concerning issues. Achieving an effective board involves addressing the performance gap and choosing the right representatives.
A useful board is one that accomplishes the mission of a nonprofit organization. A not-for-profit organization is a legal entity established and operating for a social, environmental, public, or collective benefit (Renz, 2017). Thus, the roles and responsibilities of a nonprofit organization's board differ from those of profit entities. What constitutes a good board is one that operates along with three foundational principles—duty of care, a duty of loyalty, and duty of obedience (Renz, 2017). With these principles, accomplishing the mission and driving an organization towards its vision becomes easier. Although it may seem simple, developing an effective boar on paper, in practice, is a complicated task because of the many factors involved.
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The first step towards achieving and maintaining a successful board is addressing the gap between where the board is and where it is expected. The approach involves weighing the board's performance against expected results at a given time (Van Puyvelde et al., 2018). The discrepancy between the two is an indication that the board is underperforming. An evaluation can be achieved through a set of interviews, checklists, or performance metrics. Out of the three techniques, performance metrics produces the most reliable results. It measures it is restricted to organizational performance and measures behaviours and activities in an organization (Van Puyvelde et al., 2018). Incorporating performance metrics will help identify areas of weaknesses and suggest improvement solutions.
Another step towards a useful board is ensuring it has the right representatives. Members of the board must be knowledgeable, reliable, trustworthy, and passionate about the organization's cause (Rassart & Miller, 2013). A competent board that is true to a nonprofit organization's mission is vital in securing funding, providing ideas, initiating and completing projects, and bring an organization to the next level. Often, organizations select board members based on managerial experience, income levels, educational qualification, or gift-giving level. Some of these managers have worked for organizations in the profit sector and have little understanding of the fundamentals of running a nonprofit entity (Rassart & Miller, 2013). Therefore, a nonprofit organization looking to improve its board should hire members who are versed in the nonprofit sector and exhibit an immense passion for the organization's interests.
Learning how to build a stronger board and traverse a typical nonprofit organization's common challenges is essential. How a nonprofit operates is different from a for-profit entity. Therefore, the board should display elements of the management of a nonprofit organization. The discussion offers insight into what makes a useful board and how to achieve successful leadership in organizations like NGOs, social welfares, associations, and unions, among others. A board of influential directors is critical in directing an organization towards a justifiable future by accepting sound moral and legal governance to advance its mission.
References
Rassart, C., & Miller, H. (2013). The effective not-for-profit board: a value-driving force. Ottawa: Deloitte Centre for Corporate Governance .
Renz, D. O. (2017). Nonprofit Governance and the Work of the Board. Midwest Center for Nonprofit Leadership. University of Missouri, Kansas City. The USA .
Van Puyvelde, S., Brown, W. A., Walker, V., & Tenuta, R. (2018). Board effectiveness in nonprofit organizations: Do interactions in the boardroom matter?. Nonprofit and Voluntary Sector Quarterly , 47 (6), 1296-1310.
