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Navigating the Not-for-profit Board Landscape
Serving on a not-for-profit board or committee is a rewarding experience. It offers a chance to contribute meaningfully to a cause you believe in. It also comes with responsibilities. Understanding board roles and responsibilities is crucial for individual members and the organisation’s success. This guide clarifies expectations and shows how you might enhance effectiveness.
For this guide, we’ll use the term ‘board’ to represent both boards, board directors and committee members.
Fiduciary Roles and Responsibilities: Protecting the Not-for-profit's Interests."
At the heart of a board member’s role are their fiduciary duties.These are legal and ethical obligations to act in the best interests of the organisation. These duties can be broadly described in three ways – care, loyalty and compliance.
- Duty of Care: Acting with reasonable care, diligence, and skill. This involves staying informed about the organisation’s activities, asking probing questions, and making informed decisions.
- Duty of Loyalty: Prioritising the organisation’s interests above personal gain or conflicts of interest. This requires transparency and disclosure of any potential conflicts.
- Duty of Compliance: Adhering to the organisation’s governing documents, laws, and regulations. This includes ensuring compliance with all relevant legal and ethical standards.
Governance Roles and Responsibilities: Ensuring Legal and Ethical Compliance."
All members are responsible for ensuring good governance and compliance. This includes:
- Legal and Ethical Compliance: Adhering to all relevant laws, regulations, and ethical standards. This protects the organisation from legal and reputational risks.
- Risk Management: Identifying and mitigating potential risks to the organisation. This involves developing and implementing risk management strategies.
- Policy Development: Creating and reviewing policies that guide the organisation’s operations. This ensures consistency and accountability.
The President/Chairperson: Leading the Way
The president or chairperson is the board’s leader and in some cases, the organisation’s spokesperson. They work closely with the board and any staff. The president’s responsibilities include:
- Chairing board meetings.
- Developing meeting agendas in conjunction with the secretary.
- Communicating board policies.
- Managing board structure and processes.
- Representing the organisation publicly.
“My own experience on a board showed me how crucial a strong president is. Our president, Sarah, was amazing. She kept us focused and organised. She made sure everyone felt heard.”
The Vice President/Chairperson: A Ready Reserve
The role of vice president generally is to work closely with and support the president. The vice president will undertake the duties and responsibilities of the president if they become unavailable for any reason (in accordance with your constitution and organisational rules).
The role of vice president is the ideal position for those considering becoming presidents in the future, as they work closely with the president to support them to undertake the leadership and governance responsibilities of the organisation.
This role is often under utilised and some vice presidents feel they could contribute more. The president should look at their roles and responsibilities and work with the vice president to work out how they can work together and share the workload. This will also help prepare the vice president if they do need to step in when the president is absent.
The Secretary: Recording and communicating the details
The secretary plays a vital role in the success of an organisation. From record-keeping to communication and governance, the secretary has a multitude of responsibilities that help keep the organisation running smoothly.
At its core, the role of the secretary is to provide administrative support to the organisation. This includes tasks such as taking minutes during meetings, maintaining records, managing correspondence, and handling logistical arrangements. The secretary is also responsible for ensuring that the organisation is operating in compliance with all relevant laws and regulations. Some organisations have minute takers who are not the secretary, however this is still the responsibility of the secretary to make sure they are taken, records kept and endorsed at the next meeting.
The Treasurer: Guarding the Finances
Whilst all board members have a responsibility to be aware of an organisation’s financial position the treasurer is responsible for creating the financial statements and communicating the organisation’s financial position to the board.
The treasurer’s responsibilities can include:
- Chairing the finance committee.
- Reviewing financial reports.
- Preparing financial documents.
- Creating financial policies and procedures.
- Representing the organisation during audits.
- Coordinating strategic planning with financial resources.
“I once served on a board with a treasurer that made financial information easy to understand. This helped the board make informed decisions.”
Summary
Not-for-profit boards are teams with each member playing a vital role. Effective communication and collaboration are essential, with open dialogue and trust enabling boards to make better decisions. Remember, the goal is to serve the organisation’s purpose (see statement of objectives or objects in your constitution).
Understanding the roles and responsibilities of not-for-profit board members is crucial. We have discussed the key roles of the president, vice president, chairperson, secretary, and treasurer, and how clear expectations and effective teamwork are essential for success. By working together, board members can make a significant impact. Remember, it’s all about serving the purpose of your organisation and making a difference.