Authority and Oversight of Non Profit Boards

Discussion/Initial Posts

M1/D1 First week of the term

Why do non-profit boards and those who relate to them become confused about the authority of the board?  What steps should nonprofit boards take to solidify their oversight?

Worth (2018) makes an observation to the effect that in most cases, the roles, duties, and responsibilities of non-profit boards are not clearly or explicitly defined. More specifically, according to the author, there exists little clarity about the role of the board on this front. Further, there is often little clarity about the liability of board members, from a legal standpoint (and the associated protections). In some other scenarios, the defined roles of the board may overlap with those of the CEO and other managerial officers of the non-profit.

There are various strategies that non-profit boards should embrace in an effort to further enhance their oversight. One such strategy is ensuring that the roles and responsibilities of the board are clearly defined – especially with regard to its oversight duties. Next, Worth (2018) recommends that boards should ensure that communication with the relevant stakeholders is effective and regular. According to the author, effective oversight calls for regular engagements between the board and other officers of the organization. Third, there may also be need to come up with a formal oversight policy that sets the oversight agenda and is benchmarked against the best practices. Lastly, there is also need for periodic audits. These could be taken on a quarterly or annual basis.

M1/D2second week of the term

Identify key roles assumed by board members and how they related to the strategic planning process.

One of the key roles assumed by board members is the design and management of the funding portfolio of a nonprofit (Kearns, Bell, Deem, and McShane, 2014). This, according to the authors, is an especially instrumental role on the strategic front owing to the need to adapt to “changing circumstances and anticipated economic conditions” (122). Board members also have a key role to play in the actual generation of fundraising revenue as well as volunteer mobilization. Owing to funding shortfalls as a consequence of downturn in economic activity, resource mobilization can no longer be a role relegated to specific officers of the organization. To ensure that the nonprofit continues being relevant and successfully executes its mandate going forward, board members, as Elsey (2019) indicates, should go further – i.e. by reaching out to their personal networks as well as contributing personal resources.