Last updated October 3, 2014
In carrying out its role, the Non-Profit Board is responsible for a range of tasks. While some of these tasks may be delegated to the CEO, the Board is ultimately responsible should the tasks not be carried out competently.
It is important to recognise that individual Trustees are legally liable for any actions taken by the organisation. Therefore, it is in your best interest to be vigilant in your responsibilities. Collectively, the Board is responsible for the following tasks:
- Set the Vision and Mission Statements
- Develop a Strategic Plan
- Monitor Programmes and Services to ensure they fit with the Organisation’s Vision, Mission and Strategic Plan
- Set and Approve Budgets
- Approve Major Spending or Spending Outside of the Approved Budget
- Monitor the Financial Statements
- Develop a Funding Strategy
- Manage Financial Risk to the Organisation
- Liaise with Major Donors, Sponsors and Funders where necessary
- Set and Approve Policies
- Hire and Fire the CEO
- Manage and Support the CEO
- Carry Out Performance Reviews of the CEO
- Ensure the Organisation meets its Legal Obligations to Clients, Staff and Volunteers
- Approve Major Contracts
- Undertake Necessary Training to ensure a Competent Board
- Regularly Review the Performance of the Board
In managing the responsibilities of the Board, Trustees must be careful not to accidentally take on tasks that are the responsibility of the CEO. While it is important to provide support to the CEO and show an active interest the organisation’s programmes and services, too much involvement makes it difficult for the CEO to properly do their job.
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