Responsibilities of the Board
The first section or article in the by-laws is usually about the board of directors. This is a symbolic way of recognizing the importance of the board to the ongoing viability of a nonprofit organization.
The board must agree to carry out two primary tasks, each of which includes long lists of responsibilities.
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To manage and oversee the board of directors, which includes its own meetings, meetings of any committees, elections, selection of officers, and other responsibilities.
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To maintain management or oversight of the organization, which includes fundraising or financial management, staffing, legal issues, real estate, and programming.
The board is responsible for calling and then running its own meetings, which should be scheduled at regular intervals. All decisions that affect the organization are made at these meetings, and an accurate record (the minutes) should always be retained. The board is responsible for creating its committees and soliciting any outside advice it feels it needs to manage the organization.
In practice, as your board begins to work together, the clear line between their two distinct responsibilities of (1) managing the organization's affairs and (2) managing it's own internal business will fade. However, they will remain separate areas of focus and the best boards remember this fact and plan their agendas and overall activities accordingly.
Some boards find it advantageous to utilize an administrator to help manage the board's internal business. This selection is not a priority for the first stages of a start-up nonprofit; you can make the decision at a later time.
Managing the OrganizationThe board is also responsible for the group's financial management, and it is ultimately responsible for staffing issues, long-range planning, general policy decisions, and public perception.
The board's fiduciary responsibilities will affect everything the board does both within the organization and in the community. From both a legal and moral standpoint, how the board handles that responsibility will make or break your organization.
