BOARD COMMITTEES - HUMAN RESOURCE COMMITTEE In non-profit organizations, human resource plays a key and pivotal role. Human resource is also an important asset of the organization. Therefore, it is important to develop, nurture, preserve and protect the very human resource of an organization.  The Board is responsible for proper governance and management of the organization. This would also include management of human resource of the organization. In case of medium or large organizations, the Board generally sets up a human resource (HR) Committee to support itself in discharging the HR Functions.  To know further on "Human Resource Committee", read the complete article on "Board Committees - Human Resource Committee"

"The HR Committee is said to be a sub-committee of the Board." Please share your justifications and comments.

BOARD COMMITTEES - FINANCE COMMITTEE

It is the fiduciary responsibility of the Board of an organization to be accountable for the finances. In other words, the Board is expected to oversee the financial affairs of the organization and is accountable to the donors, government, community and society at large. Therefore, the Board has the ultimate responsibility for the financial affairs of the organization. 

However, not all Board members would have the financial management acumen. Secondly, since the Board members provide voluntary service to the organization, they may not have adequate time to devote to detailed financial oversight. Therefore, the Board sometimes appoints a Finance Standing Committee consisting of some Board members and specialists.

To know further on "Finance Committee", read the complete article on “Board Committees- Finance Committee”.

BOARD COMMITTEES - AUDIT COMMITTEE

Audit is an independent assessment of the true and fairness of the financial statements prepared by the organization. It is important to recognize that even though the management of an organization is given the task of preparing financial statements, it is eventually the responsibility of the Board to ensure that the financial statements are properly prepared. In order to efficiently exercise its oversight function, the Board works through setting up various Committees. One very important Committee which a Board can set up is “Audit Committee”.

To know more about "Audit Committees", read the complete article on “Board Committees- Audit Committee”. 

BOARD COMMITTEES - EXECUTIVE COMMITTEE

In any organization the Board is the highest and ultimate decision-making body. However, as the organization grows in size, it may not be possible for the Board to make all the decisions directly. This is more so since the Board consists of volunteers who sacrificially give their time in governing the organization. Therefore, the Board decides to delegate certain responsibilities to the management team and provides oversight. Basically, the Board makes a distinction between governance and management function. While the governance functions are retained at the Board level, the management functions are delegated to the management.

  

To know more about "Executive Committees", read the complete article on “Board Committees- Executive Committee”. 

"Can the Executive Committee replace the Board?" Please share your views with us.

BOARD EVALUATIONS - CEO EVALUATION

The Board members of an organization collectively referred to as Board set the vision, mission, strategy 

and structure of the organization. However, the Board vests the responsibility of management and day-today operations of the organization to the Chief Executive Officer (CEO) (here CEO refers to the Chief 

Functionary). 

The chief executive officer is the key link between the organization and the Board. The primarily 

responsible is to carry out the strategic plans and policies as established by the Board.

Since the CEO is the head of management there is generally a relationship of trust between the Board and the CEO. On one hand the Board holds the CEO accountable for running the organization and on the other hand the Board also sets the mandate of the CEO by providing set of guidelines and roles/responsibilities. The Board should also provide a clear reporting framework to the CEO to be accountable. Generally, on behalf of the Board the Chairperson acts as the reporting officer for the CEO.

To know more on CEO Evaluation types and processes , read the complete article on “CEO Evaluation”  Click here.

"What is the difference between 'the Board's CEO' and 'the CEO's Board'?" Please share your views.

BOARD EVALUATIONS - BOARD EVALUATION

The Board is the final and highest decision-making body within an organization. Mandatorily, it is required that every organization have a duly constituted Board. However, in actual practice it has been seen that while some Boards work in a very effective manner, there are others who exist for the sake of records. These are the two extreme scenarios in Non-Profit Organizations. A regular, well-structured Board evaluation process helps in enhancing efficiency and effectiveness. However, it is important to have a clear political will at the highest leadership level to implement a Board evaluation process.

There are no legal or statutory compulsions on the part of the Board to undertake its own evaluation. However, for a learning and pro-active Board, it always adds value to its functioning and effectiveness if regular Board evaluations take place.

To know about the various Board Evaluation types and processes , read the complete article on “Board Evaluation” Click here.

"Board evaluation form is a diagnostics tool for examining the performance of the Organization." Please share your views.

JOB DESCRIPTION ( Including do’s and don’ts)

BOARD MEMBERS-ROLES & RESPONSIBILITIES

A Board works on the principle of collective wisdom. The underlying principle for setting up of a board is that the collective decision making process minimizes risks and maximizes effectiveness.  In that context, the individual members play a very important part in enhancing the overall effectiveness of the board. Therefore, the board must be a fine blend of individuals drawn from different walks of life & diverse sections of community.

Board members set the strategic direction of the organization. Along with providing oversight and supervision to ensure that management and operations are legally compliant, effective and appropriate, the Board is supposed to make effective decisions.

To know about the reasons and responsibilities, read the complete article on “Board Members-Roles and Responsibilities”Click here.

In view of the above, the question that arises is “Why anyone should become a Board member of a NPO?”, “What are the roles and responsibilities ?”