Responsibilities of Not for Profit Boards

By Ginette Johnstone

Learn about the roles and responsibilities of not-for-profit boards of directors. Easy and quick to read, this book will clarify the who what where and how of directorship for charity, commnunity, sports and other organizations.

• Language: English
• Publisher: Lulu.com
• Release date: Nov 4, 2014
• ISBN: 9781312286870

Book preview

Responsibilities of Not for Profit Boards

Responsibilities of Not-for-Profit Boards

2nd Edition

© 2014 Ginette Johnstone, M.Ed.

All rights reserved

ISBN:  978-1-312-28687-0

Previous edition published by JTC Inc., 2000

"Roles and Responsibilities

ISBN: 1-895271-28-2

Ginette Johnstone

Edmonton, Alberta, Canada

[e-mail]

Introduction

As the voluntary sector grows and not-for-profit agencies take on more of the challenges in providing programmes and services, the role of voluntary boards of directors takes on new dimensions.  Gone are the days when directors brought little more than their name, status and wealth to agencies.  With growing need for greater public accountability, being a director holds far more challenges and liabilities.  Though boards in the past provided valued experience and guidance, boards today are becoming increasingly representative of their membership, increasingly aware of governance issues and increasingly prepared to take on both responsibility and accountability for the work of their organizations.

Without willing and committed individuals who are prepared to sit on voluntary boards of directors, many of our organizations could not exist.  Despite some of the recent criticism of boards and the call for more accountability, the not-for-profit board structure has great value.  No other body can represent and speak for the membership as clearly and objectively as the board.

To be effective however, directors must, more than ever before, be knowledgeable about their responsibilities.  This is what this manual hopes to clarify.

Why

How often do we stop to think about why there is such a thing as a board of directors?  As mentioned above, the board of directors is critical to the accountable, effective functioning of any organization which is dependent on public and donated funds.  Directors are at once involved and committed enough, yet removed enough, to ensure that membership and service priorities are adhered to.

Boards of directors are accountable to their membership.  They

take direction from the membership,

represent the membership,

provide direction to the organization,

ensure the democratic process; and

safeguard the rights of members.

To these tasks they bring commitment, dedication and a wealth of knowledge and experience.

What

The not-for-profit governance or policy board is the body which holds legal responsibility for the organization.[1] Their job is to govern the organization.

Governance happens when the board of directors addresses four main areas of responsibility:

planning;

human resources; 

financial; and

legal.

Policy becomes the mechanism by which directors ensure that their governance decisions are implemented at all levels of the organization.

They are also responsible for their own internal functioning.  This means that as a team, the board will put in place processes that will ensure that each director contributes to the best of his or her abilities and that the team performs efficiently.

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