Selecting and maintaining an effective Board of Directors is vital to the long term success of a Non Profit organization. Because of the wide variety of challenges that non profit board members face, every Non Profit Organization (NPO) should have a comprehensive Board Training Program.
While every board member brings their own unique talents and perspective, it is important that all members are the same page. This can be accomplished by a comprehensive board training program.
A board training program should include many topics including:
- The Board’s role in management decision making and personnel decisions. This is often a source of conflict between Management and the Board of Directors. Clarifying this issue up front eliminates many problems and frustrations.
- The difference between the mission of a non profit organization and a for profit organization. While there are many similarities, there are also critical differences. An effective Board Member knows the difference in purpose and will adjust her policy decisions accordingly.
- A board member MUST Understand the financial statements of the NPO. While you definitely don’t need to be an accountant to effectively serve as a board member, you must understand YOUR organizations financial statements. You cannot effectively make an informed decision on adding expenses, accepting new grants or projects, or new proposed hirings if you do not understand where you are at and where you are headed financially.
- A board member should understand the policies and procedures that are in place. If your organization does not currently have a policies and procedures manual, one should be put in place immediately.
- Board members should be assured and comfortable with the level of internal controls to help prevent fraud and mistakes.
- Board members should be assured that proper tax and grant compliance are taking place.
- Board members should know the strategic plan for the NPO and make sure the operating budget is compatible with it.
David Cooper Accounting can help by:
- Taking our video course on Board Training with the accompanying example policy manual, internal control policies, and accounting system setup suggestions.
- Customized training for your specific organization. This can include onsite training for your board members and management staff.
- An internal control, systems review and disaster recovery evaluation. We can review your current situation and help you setup a system that will meet your needs.
For more information contact: