You're overseeing a non-profit organization. How do you determine if your board of directors is effective?

1 Board Goals

To gauge the effectiveness of your board of directors, start by reviewing their goals and objectives. These should align with your non-profit's mission and strategic plan. An effective board sets clear, measurable goals that guide the organization towards its long-term vision. They should be actively involved in creating and updating these goals, reflecting the organization's evolving needs. If your board's objectives are consistently met, it suggests they are functioning well. However, if goals remain unachieved without good reason, it could indicate issues with the board's performance or the goal-setting process itself.

2 Role Clarity

For a board of directors to be effective, each member must understand their role within the organization. This includes knowledge of their duties and how they contribute to the board's collective function. An effective board has members who are engaged, participate in meetings, and take their responsibilities seriously. They should be familiar with the non-profit's bylaws, mission, and strategic plan, as well as their legal obligations. If you find that your board members are unsure of their roles or the board's expectations, it may be time to clarify responsibilities and provide additional training or resources.

4 Strategic Planning

Strategic planning is another key area where the effectiveness of your board can be measured. An effective board works closely with the executive director to set the organization's strategic direction and ensure it aligns with its mission and values. They should be proactive in addressing challenges and seizing opportunities. If your board is actively involved in strategic discussions and decision-making, it's a good sign they are performing well. If strategic planning seems to be an afterthought, it may indicate a need for more board involvement in shaping the organization's future.

5 Fundraising Support

Fundraising is often vital for non-profit organizations, and an effective board plays a significant role in these efforts. Board members should leverage their networks to help secure funding and resources for the organization. They may also participate in fundraising events or campaigns. If your board is actively engaged in fundraising, with members contributing ideas and support, this is a positive indicator of their effectiveness. If fundraising activities are ignored or left entirely to staff, it could point to an area where the board needs to step up its game.

6 Compliance & Ethics

Lastly, compliance and ethics are non-negotiable elements of an effective board of directors. They must ensure that the non-profit adheres to all legal requirements and operates with the highest ethical standards. This includes conflict of interest policies and transparency in operations. An effective board will have clear policies in place and will hold themselves and the organization accountable. If your board takes its compliance and ethical responsibilities seriously, it will not only protect the organization but also build trust with stakeholders.