Boards of Directors Responsibilities
Boards of directors play a vital function in nonprofit organizations. They are legally responsible, but they also play an important part in the organization’s culture, strategic focus and governance as well as financial sustainability. And they serve as ambassadors and advocates.
Hiring and setting compensation for CEOs and general managers is one of the most important duties. This is a major decision that can affect the company’s growth strategy and its growth. It can be difficult to find someone who is suitable for the job.
Controlling management, monitoring performance and evaluating risk are also crucial tasks. This is accomplished by regular meetings and discussions, as well as reviewing and setting up policies to manage risk. A board could set up an advisory committee to review and evaluate specific projects or areas to ensure they’re following the plan and to minimize risks.
A board is also responsible to attract new talent and this is accomplished by recruiting passionate individuals with the necessary skill and experience. This includes identifying and evaluating possible candidates for upcoming elections. It’s often a lengthy process to find new members, but it’s essential to have a strong board.
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