Eleven Ways to Measure The Effectiveness Of Your Nonprofit Board

Submitted by Anthony Brunson, P.A.

While every board of directors is different based on the member composition, mission, and strategic initiatives, mid-to-large sized nonprofit organizations commonly use the following methods to measure their effectiveness.

1. The organization has identified what diversity means to its board and documented the ideal mix and skill sets needed for a diverse board, as they define it.
2. Members have received training on the governing documents and reading nonprofit financial statements.
3. Members have been trained on their board roles and responsibilities, including the duty of loyalty, duty of care, and duty of obedience.
4. Members are aware of state and local laws and regulations impacting the organization.
5. Meetings are scheduled for the year and members attend the majority of the meetings prepared and provide value.
6. The CEO/Executive Director has an annual performance and compensation review process.
7. The organization has a conflict-of interest policy and members annually sign and disclose actual and perceived conflicts.
8. The organization has functioning committees that allow the board to stay at a higher oversight level and not get into the details.
9. Meeting notes and decisions are concise, well documented, and contemporaneous.
10. The board completes a board assessment every two to three years.
11. If applicable, all board of directors understand the organization’s fundraising goals and “give and get” policies.

Many small nonprofit organizations have a working board which could make the implementation of some of these methods a challenge. However, they should not be overlooked. Instead, the principles should be adapted to the type, size, and complexity of the organization.

To learn more about board assessments and evaluating board practices, check out resources at BoardSource, National Council on Nonprofits, BoardStrong, and BoardEffect.

Source: aicpa.com