Role Of Board Of Directors In Nonprofit Organization
The board of directors plays vital roles in every organization. In fact, its roles of the board of directors in a nonprofit organization are quite similar to those of any other organization. Specifically, the role of a board in a nonprofit organization is to review the mission statement so as to figure out the organization’s goals and strategies. This includes participation in the overall planning process. Additionally, the board’s members agree on the responsibilities of the chief executive, while ensuring that the most qualified person takes the job. Also, the board ensures that the nonprofit organization adheres to all applicable laws and that its activities are ethical. Moreover, the board ensures prudent use of the organizations …show more content…
Actually, this is achieved through strategic and business planning. Strategic planning involves coming up with strategies which can enable a nonprofit achieve its mission. The board members and staff have to keep on reorganizing the company’s strategies to suit the ever changing internal and external environments. Actually, the organization can start by analyzing the strengths, weaknesses, opportunities, and threats (SWOT analysis). On the other hand, business planning involves considering the organization’s mission and vision, external environmental factors, and the role of the board. Such a plan helps in identifying how the organization will achieve the set goals and objectives and the funding required for such an endeavor. In addition, the plan can identify potential future risks, and in turn provide an alternative incase the intended plan …show more content…
Effective communication in a nonprofit can help in increasing the firm’s funding, aid the volunteer recruitment process, and assists in gaining recognition and support. An effective communications strategy can help the organization meet its key objectives.
Computer skills are quite vital in the running of nonprofit organizations, especially after the major advancements made in technology. Allen (2015) suggests that such skills will be vital in the coming years, since load of technology skills will be highly necessary.
Program evaluation involves the collection of information about a certain program so as to make decisions about it. In a nonprofit firm, program evaluation helps in indicating how the organization has achieved its objectives, as well as being utilized as a key indicator of success.
Financial transactions within a nonprofit organization are quite frequent. Therefore, there is always a need to open a bank account to facilitate such an activity. Opening a nonprofit account requires a copy of the nonprofit’s articles of organization or charter, articles of incorporation, and a copy of the Employer Identification Number issued by the Internal Revenue