Best Practices for Board Management of Nonprofit Organizations

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The success of a nonprofit organization is dependent on the management of its board. The board is responsible for overseeing the mission of the organization and must also abide by ethical and legal standards when they oversee and manage it. To ensure that these obligations are fulfilled the board must adhere to the highest standards in all areas.

One area of particular concern is fundraising and donor management. The board should focus on encouraging creativity and innovative ideas from members to aid these efforts. It should also be the first to encourage and retain new members. Included in this is an explanation of the role, and what they will be doing. This will help to avoid miscommunications and expectations and help with the recruitment process.

Another crucial aspect is to ensure that the management of revenue is well. The board must protect the tax-exempt status of non-profit organizations by ensuring that all expenditures are justifiable. This means that the board should ensure that the CEO is accountable for his spending and that they are not allowing the organization to spend more than what it is.

Board members are often overwhelmed by the privilege of serving the community and forget they are there to run the organization. This is evident in the most important areas, such as the selection of an executive director, to the smallest of details, such as weighing in about the price of a service. To avoid this, the board must regularly assess its performance and make any needed changes.

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