Governance & Leadership: Roles and Responsibilities

1. Board members should be provided with a job description with clearly stated expectations, orientation to the history and current programs of the organizations, and should fully understand their roles and responsibilities to the organization and to the public.
   
   
2. The board should establish a process for selecting new board members that will ensure adequate infusion of new ideas and community perspectives, while preserving institutional memory. Term limits for board members and officers should be considered, and are highly recommended, although they are not required by law. Related Case Study
   
   
3. To demonstrate personal stake in the organization, board members are expected to commit to meeting the needs of the nonprofit. This may mean raising funds from external sources, volunteering time and/or making financial contributions to the nonprofit.
   
   
4. The board should annually, or at a minimum of every two years, review the organization’s bylaws and mission, vision and values statements and amend as needed to reflect organizational growth and development. *ME/US
   
   
5. The board should annually review and approve an annual budget for the organization. While each board must determine the appropriate budget needed to achieve its mission, various industry benchmarks provide target ranges of 65-80% of expenditures for programs, and 20-35% for administration, fundraising and evaluation.
   
   
6. The board should annually conduct a performance review of the chief executive. The chief executive’s performance should be assessed in light of organizational accomplishments, and the total compensation package (salary, raises, bonuses and other benefits) should reflect his/her performance as well as industry standards. The board should also review and approve the overall salary structure for the organization.
   
   
7. The board should establish an organizational transition or succession plan to maintain daily operations in the event of a change in executive or board leadership. Related Case Study
   
   
8. The board should regularly conduct an environmental scan of similar-service organizations to assess relationships and discuss possible strategic alliances.