Boards of directors play a vital role in nonprofit organizations. They fulfill legal responsibilities, but also play a significant role in the organization’s culture, strategic focus and governance as well as financial sustainability. They also serve as advocates and ambassadors.

One of the most important duties is hiring and setting compensation for general managers and CEOs. This is a major decision that could have a lasting impact on company growth and strategy, especially in times of crisis and it can be challenging to identify the appropriate person.

Monitoring of management’s performance, and evaluating risk are all important tasks. This can be accomplished through regular meetings and discussions and reviewing policies to manage risks. A board could establish an advisory committee to review and evaluate specific projects or areas to ensure that they are going according to plan, and to mitigate potential risks.

The board’s responsibility also involves the recruitment of new talent. This can be accomplished by attracting people who are committed and possess the necessary skills and experience. This includes identifying and evaluating prospective members for the next elections. It’s a lengthy process to identify new members, yet it’s necessary for a well-functioning board.

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