Page 16 - C&A's Nonprofit Board Guide

BOARD & EXECUTIVE DIRECTOR ROLES BOARD & EXECUTIVE DIRECTOR ROLES

is the Board’s responsibility to select the Executive
Director and outline his/her role; the Board
supports the Executive Director and assesses his/
her performance (should be performed in a written
evaluation); the Board determines appropriate
compensation for the Executive Director and other
executive staff members; and the Board has the
power to hire and remove the Executive Director.
Fiscal Oversight ROLES OF THE EXECUTIVE DIRECTOR
The Board provides proper fiscal oversight,
including setting and approving an annual budget.
This does not mean the Board prepares the budget, hile the Board’s role is to oversee, the role Staff Liaison to the Board of Directors
nor does it mean that the Board should micro- W of the Executive Director is to execute
manage the budget process. The Board should the policies, programs, and initiatives The Executive Director must also keep the Board
review and gain an appropriate understanding established by the Board. The Executive Director informed as to what the organization is doing.
of the budget, ensure that the organization is is responsible for running the day-to-day The Executive Director attends Board meetings
establishing appropriate reserves, revenues and operations of the organization. The Executive and maintains open lines of communication with
expenses make sense and are supportable, and Director is an employee of the organization whose the Board of Directors.
monitor the organization’s fiscal health and actual responsibilities are determined, and performance Ensure Effective Operations
operations compared to budget on a regular basis. monitored, by the Board of Directors.
Board members need to have at least a basic The Executive Director is responsible for running
understanding of how the organization generates Staff Management the day-to-day operations of the organization. It
revenue and its cost structure to be able to The Executive Director hires, supervises, and is the Board’s responsibility to provide the overall
understand if the proposed budget is reasonable. motivates the staff of the nonprofit. It is the framework, but it is the Executive Director that
The fiscal aspects of an organization are not always Executive Director’s responsibility to ensure the steers the ship to ensure the organization stays
the easiest for Board members to understand, but organization is properly staffed, all of the staff on course. This framework is often developed
they are the lifeblood of any organization. members have appropriate job descriptions, job jointly by the Board and Executive Director
Part of the role of the Board is to ensure that the performance is evaluated and pay is appropriate through a strategic plan which provides a road
map for management to follow.
organization has the financial resources it needs. within a predetermined scale, staff members are
As a result, Board members should be involved in following organizational policies and protocols, In order for an organization to be effective,
helping in the organization’s fundraising efforts. and that everyone is properly trained and on the the Executive Director and the Board must
Fundraising is often essential to an organization same page in terms of organizational mission embrace their roles, open up lines of strong
to provide discretionary funding. Many Boards and goals. The staff of a nonprofit traditionally interactive communication, and develop a
require a give-or-get commitment from its Board comprise more than 70% of a nonprofit’s annual collaborative relationship focused on ensuring
members. This is something you should understand expenditures, so this can be a significant part of the organization’s mission is carried out in the
before joining a Board. the Executive Director’s responsibilities. most effective and efficient way. If the Board
Program Oversight Development and Management of and management aren’t in-synch, with the Board
providing governance, oversight, and monitoring
Policies and Programs
It is the Board’s responsibility to ensure that organizational effectiveness, and management,
programs are in place to further the mission and While it is the Board’s responsibility to set policies, building off the framework provided by the
goals of the organization. If there are specific it is the Executive Director’s responsibility to ensure Board, guiding the various components of
compliance programs that the organization must that the Board’s policies are properly implemented. the organization so that they are functioning
follow (e.g. Medicaid), the Board should ensure a In many organizations, the Executive Director may in harmony, the organization will not reach
proper compliance program is in place and should suggest policy to the Board, but ultimately the its full potential. Like with any relationship,

be receiving regular updates of the organization’s establishment of such policies rests with the Board. communication and trust are essential.
compliance. It is management’s role to put procedures in place to
ensure that policies are effectively being followed.

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