For nonprofits with no employees, the board of directors typically plays two key roles: management and oversight. This is commonly referred to as a “working board” scenario. It isn’t usually a problem, although each board member should be aware that the roles are separate. It’s easy to get lost in the more instantly-gratifying, impact-rich and time-consuming world of managing programs, applying for grants and tending to the general operations of the organization. However, a working board should allocate some time for the higher-level strategic thinking they must do as the governing body for the organization. This article from Nonprofit Quarterly discusses some ways to make sure the separation happens.
If the organization later hires an executive director, the board should be willing to let go of some management duties. The transition from a volunteer-based organization to a staffed organization is a great time to reassess your ideal board composition. Is everyone on your board capable and willing to play the fiduciary role necessary to guide the organization? Can they resist the urge to focus on operational tasks? Part of the strategic role of the board is to make sure each board member is fulfilling their fiduciary duty to the organization. It’s not always easy, but the long-term success of the organization’s mission is the reward.
