Boards of directors play an important role in nonprofit organizations. They are legally responsible, but they also play a major role in organizational strategy, culture and governance as well as financial sustainability. They also act as advocates and ambassadors.
Hiring and setting compensation for general managers and CEOs is among the most important tasks. This is a major decision that can have a significant impact on the company’s growth strategy and its growth. It isn’t easy to find someone who fits this job.
Monitoring management’s performance, and evaluating risk are also essential functions. This can be done by regularly scheduled meetings and discussions, as well as reviewing and establishing policies to manage risk. For instance the board can set up a committee that reviews and evaluates particular projects or areas of the business to make sure they are running as planned and to limit any potential risks.
A board’s responsibility also includes the need to attract new talent. This can be done through the recruitment of individuals who are committed and possess the necessary skills and experience. This involves the selection and evaluation of potential candidates for future elections. It can be a long process, however it is essential to have a strong board and the success of the organization.
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