PRINCIPLE RESPONSIBILITIES OF AN NGO BOARD AND ITS MEMBERS
By Joanna Moshman
T
he board of directors is crucial to an NGO and is responsible for many specific
tasks. The boards main task is to govern and oversee the operations of the
organization through acting as fiduciaries. In other words, the board is legally,
financially, and morally responsible for the organization.
1
Each individual member
of a board is significant and holds many responsibilities that help contribute to his/
her work on the board as a whole. The five main tasks listed below outline crucial
responsibilities of the board as a whole, focusing on how each individual member can
effectively contribute to these tasks.
1. Mission and Purpose
A board of directors as a whole is responsible for creating
and defining the mission of an organization. This is usually
done so in the form of a mission statement. The statement
must include:
The purpose of the NGO
The core values of the NGO
What the NGO seeks to accomplish.
2
The mission statement is not set in stone. The board of
directors is responsible for reviewing it regularly in order
to assess whether any revisions are necessary. One way in
assessing whether this is necessary is to look at the programs,
activities, and/or fundraisers of the NGO to make sure the
organization has not drifted from its purpose.
3
As a board member, you are individually responsible for:
Knowing and understanding an
organizations purpose and mission statement
Being able to explain what the NGO does and
what population it targets
Being able to provide people with
general information about the NGOs programs
and activities
Explaining your personal reasons for being a part
of the board and what your individual goals are.
4
2. Hire and Work With the Chief Executive
The responsibility that the board has of choosing and hiring
a chief executive director is significant because he/she is
essentially handling and managing the entire organization.
Before selecting an executive director, the board of directors
must wholly review the mission and purpose of the
organization and then agree on what their expectations are.
They must agree on what kind of person they are looking
for and what kind of person would positively contribute to
the NGO.
5
In talking to and interviewing candidates, the
board must:
Be clear about the job description and what the
job essentails
List both general and specific responsibilities
Look for desirable personal attributes,
strong communication skills, and
efficient management and organizational
characteristics
Be honest about any problems the NGO is
currently experiencing.
6
Lastly, the board is responsible for understanding
what their tasks are and how they are different from those
of the executive director. For example, they must be aware
of the fact that their primary responsibility is governance
of the NGO, while the chief executive is responsible for
management and hiring all other staff. However, just as the
chief executive is expected to support the board, the board
must work well with and support the chief executive in
his/her decisions.
7
As a board member, you are individually responsible for:
Counseling (when necessary) and supporting
the chief executive
Consulting the executive director and keeping
him/her updated on your tasks and activities
Working collectively with the board to
appropriately evaluate the work of the
executive director
8
Advising the chief executive about the advantages
of partnerships if you are knowledgeable about
and/or part of another organization.
9
3. Financial Oversight
The board is unanimously responsible for the careful and
prudent use of money within the organization. In order to
meet this responsibly, the board should determine what
the financial policies are.
10
Most importantly, the board
should help develop and approve the annual budget.
This is a significant responsibility because approving the
budget has a domino effect on all other priorities within the
organization. It is important that the approval is done by no
one elsenot even the executive or finance committees.
11
In overseeing the budget, board members should
receive financial and accounting balance sheets and reports.
This ensures that everybody is up to date on the financial
situation and changes can be made if necessary.
12
Lastly,
board members as a whole should be insistent upon an
annual audit. However, the board members should not
BeyondBoundaries *SUMMER 2008
perform the audit, but should regularly meet with an
independent auditor who should be assessing the financial
situation.
13
As a board member, you are individually responsible for:
Maintaining confidentiality of the boards
meetings and financial related issues
Never accepting/offering bribes or favors
with anyone who is associated business-wise with
the organization
Being cautious and careful with any controlling
and transferring of funds
Making sure you understand and are up to date
with the NGOs financial statements and situation
14
Fulfilling your role of a fiduciary.
15
4. Provide Adequate Resources
Providing resources for an NGO relies very much on
individual board members and their ability to attract
and influence large donors. However, there are some
responsibilities of the board as a whole that need to occur
first. The board of directors is responsible for:
Ensuring that the NGO has enough human
and financial resources to serve its mission
and purpose
Working with the chief executive, who is often
times the chief fundraiser, in setting
fundraising goals
Formulating a fundraising strategy and
approving a case statement that explains why
the NGO needs money and what it will be used for
16
Working together as a group to monitor, oversee,
and guide fundraising activities.
17
As a board member, you are individually responsible for:
Giving an annual contribution based on
personal means
Participating actively in fundraising (i.e.
writing letters, soliciting, planning events)
18
Sharing with the community successful
fundraising strategies and fundraising needs
Sharing enthusiasm and commitment to/about
the organizations fundraising activities
19
Using businesspeople and other prominent
contacts in the community to provide financial
resources to the NGO
Planning lunches/events to provide financial
contacts for the NGO
20
5. Communicate with the Community
The board of directors is responsible for acting as the
voice of the NGO. They are responsible for articulating the
goals, mission, and purpose of the organization in order
to promote it and help the community understand what
it is they do. They must ensure that they collectively listen
to the needs of the community and make any necessary
changes that will enable them to serve the community to
the highest potential. Board members are also responsible
for making sure the NGO can support outreach to the
community through a significant and successful public
relations strategy. Along with this, they should help in
developing strategies for community outreach.
21
As a board member, you are individually responsible for:
Suggesting nominees to the board who are
achieved men/women you may know from
the community
Conveying to the community enthusiasm about
the NGO
22
Speaking to the community, friends, and other
personal contacts about the NGO
Providing publicity for the NGO at events/galas.
23
Much of the literature surrounding the role of the board of
directors of an NGO focuses on the board responsibilities
as a whole. The previous five points attempt to shed some
light on the role of the individual and how important he/
she is in contributing to the overall make-up of the board.
Most importantly, individual members must perform their
jobs competently and efficiently while being able to work
well with other board members and establishing a healthy
and responsible working relationship with them.
FOOTNOTES
1
Hummel, Joan M. (1996). Starting and Running a Nonprofit Organization
Minneapolis: University of Minnesota Press.
2
Ingram, Richard T. (2003). Ten Basic Responsibilities of Nonprofit Boards.
Washington DC: BroadSource.
3
U.S. Department of Labor. Meeting the Challenge: An Orientation to
Nonprofit Board Service. Retrieved June 16, 2008 from http://
[Link]/cfbci/tlc/docs/SustainabilityLibrary_SectionD_
3/Board_ Service_Orientation.pdf.
4
Patterson, Sally J. (2006). Generating Buzz: Strategic Communications for
Nonprofit Boards. Washington DC: BoardSource.
5
Wolf, Thomas. (1999). Managing a Nonprofit Organization in the Twenty-
First Century. New York: Simon & Schuster.
6
Wolf, Thomas. (1999).
7
Ingram, Richard T. (2003).
8
Ingram, Richard T. (2003).
9
Patterson, Sally J. (2006).
10
Hummel, Joan M. (1996).
11
Ingram, Richard T. (2003).
12
Wolf, Thomas. (1999).
13
Ingram, Richard T. (2003).
14
Ingram, Richard T. (2003).
15
Hummel, Joan M. (1996).
16
U.S. Department of Labor.
17
Ingram, Richard T. (2003).
18
U.S. Department of Labor.
19
Patterson, Sally J. (2006).
BeyondBoundaries *SUMMER 2008