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Core Responsibilities of Nonprofit Arts Boards

The functions of governing boards and trusteeship are receiving attention as never before. There is a growing acceptance of the notion that effective governance determines organizational effectiveness. Leadership must come from both strong executives and strong boards.

All organizations undergo a metamorphosis over time that calls for periodic review, fine-tuning, renewal and sometimes major overhaul of their governance structures. This summary will help to clarify and distinguish the responsibilities of the board as a collective entity and those of individual board members.

Ensure the organization's mission and purposes

Ensure mission statement exists, articulates goals, directions, constituents, distinctiveness. The mission statement should be compelling. The board assesses program activities against the mission and it should serve as a guide to organizational planning, board and staff decision-making, volunteer initiatives, marketing strategies and priority setting.

The central artistic mission of the organization is the driving and defining element in all its relationships. This artistic center is a unique combination of the philosophy, aesthetic/programmatic framework, the person(s) at the center, and the unique culture of an organization.

Supervise and evaluate the organization's performance

Hire, monitor and periodically review the performance of the Executive Director (who manages the organization's day-to-day business operations) and the Artistic Director (who is responsible for artistic decisions). Note that the duties of the E.D. and the Artistic Director may be vested in one person. Ensure that personnel policies are in place and executive's personnel roles are clear; establish objectives and expectations, provide compensation; define board's roles vs. directors' roles; provide feedback and support.

Ensure adequate resources

Ensure that a game plan for fundraising exists. Monitor, support and guide fundraising. Open doors to increase resources. Increase earned income streams. Provide access to ongoing in-kind donations such as professional services and expertise, office equipment, etc. Give individually to demonstrate board giving commitment and expand individual giving.

Ensure effective financial and legal management

Help develop and approve annual budget. Ensure timely, intelligible, accurate financial reports, and regular monitoring of performance against budget. Ensure wise investment strategies and annual audit. Ensure compliance with local, state and federal laws, regulations, and tax reporting requirements that apply to nonprofit organizations.

Ensure strong board leadership

Ensure ongoing board development linked to mission and vision of the organization. Strategically recruit new members, develop leadership, provide oversight, become actively engaged on committees, support staff and ensure alignment of programs with mission and with needs of constituents. Ensure that resources are focused on appropriate priorities.

Avoid conflicts

Serve the arts organization as a whole rather than any special interest group or constituency. Avoid even the appearance of a conflict of interest that might embarrass the board or the organization. Disclose any possible conflicts to the board in a timely fashion. Do not accept any gift that would require or create the appearance of obligating the organization in any way.

Enhance the public image and advocate on behalf of the organization

Ensure that there is an effective public relations program in place. Ensure that regular communications promote the organization's image effectively. Ensure clarity about who speaks for the organization. Expand their sphere of influence and advocate as a representative of the organization to its broader constituents. Promote attendance and build enthusiasm for performances, exhibitions, programs, events, etc. sponsored by the organization.

Assess its own performance

Periodically review board's effectiveness in meeting its responsibilities, including membership composition, board structure, committees, roles, and performance of individual board members.

Sources:
Ingram, Richard T. (1996). Ten Basic Responsibilities of Nonprofit Boards. National Center for Nonprofit Boards, Washington, D.C.
McDaniel, Nello and Thorn, George (1994). Arts Boards: Creating a New Community Equation. ARTS Action Issues, New York.

Governance
» Trustee Responsibility
» Core Responsibilities of Boards
» Board Strengths and Weaknesses
» Board Recruitment and Orientation
» Conducting a Board Meeting
» Issues Boards Face
» Board Self-Evaluation
» Involve your Board in Fundraising (Fundraising section)
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