The Role and Responsibilities of a Director: Not-for-Profit Governance Best Practices

By Al Weber, President, Tweed-Weber, Inc.

Given the number of not-for-profit organizations we work with, it is not uncommon for the leaders, both professional and volunteer, to ask us for some guidance as they develop their boards of directors. They typically want to get a better idea of what their (the board's) responsibilities are and exactly what they need to do to fulfill their fiduciary and governance responsibilities. Additionally, they want some idea of how they can function more effectively. Below is a checklist addressing the common role and responsibilities of a board member and the best practices that should be adopted by a board to help ensure those responsibilities are fulfilled.

 

Over the coming months, we will address these areas in greater depth through our blog. In the meantime, feel free to download your own copy* and incorporate them into the governance dialog within your organization.

*If a preview does not appear on your screen, click "File," then "Download." You will need Adobe PDF.
 

 

Role of a Director

 

The role of a director is to serve as a steward of a community asset. Effective stewardship requires the commitment of time, talent, and treasure. 

 

Responsibilities of a Director

• Hire and manage the President/Executive Director.
• Approve the mission and strategic direction of the organization.
• Approve the budget/financial plans of the organization (to include borrowing, capital expenditures, investments, etc.).
• Oversee the performance of the organization (relative to established plans, defined standards, and required regulations).
• Promote/represent the organization in the community.
• Provide advice and assistance as requested.
• Participate in the assessment and perpetuation of the board.
• Support the organization financially.

 

Governance Best Practices

• Develop a board matrix and recruit directors based on it.
• Establish and enforce term limits.
• Define, in writing, expectations of board membership.
• Conduct new board member orientation.
• Conduct “industry” training for all board members.
• Provide board members with ongoing industry and good-governance information.
• Conduct a board self-assessment on a predefined basis.
• Evaluate each director prior to re-nominating him/her.
• Evaluate the Executive Director annually.
• Establish standing committees with written charters and annual goals.
• Develop board and committee meeting formats.
• Produce and distribute (widely) board and committee meeting minutes/reports.
• Evaluate committee performance annually.
• Develop board and committee leadership succession plans.
• Engage board members in strategic and annual planning activities.
• Provide board members with opportunities to socialize.

 

If you would like information on how to conduct a board self-assessment or a CEO/Executive Director performance evaluation, feel free to contact Tweed-Weber through any of the following methods: via telephone at 1-800-999-6615, by email at mail@tweedweber.com, on LinkedIn (Tweed-Weber, Inc.), or on Twitter (@TweedWeber).