Issues Boards Face

Every issue pertaining to a nonprofit board of directors relates to the topic of governance, the overall principle and set of practices for ensuring accountability and compliance, transparency, healthy growth and long-term security. Some of the most prominent areas of nonprofit governance today in the post-Sarbanes-Oxley world include:

  • Accountability and transparency issues
  • Financial oversight and internal controls
  • Hiring, evaluating, and if necessary, firing the Executive Director
  • Program performance evaluation and development
  • Organizational and strategic planning and development
  • Personnel and human resource development
  • Policy development

Things to remember:

  • Always work to advance your organization's mission
  • Review, update and follow your organization's governing documents
  • Board members: Stay active and be informed
  • Avoid conflicts of interest
  • Protect board members and officers from legal exposure
  • Understand the legal and tax status of your organization
  • Comply with applicable state laws
  • Properly manage employees and volunteers
  • Be Internet savvy
  • Maintain records and be financially accountable
  • Avoid legal challenges
  • Remember the "Enquirer/Post Test." How would it read on the front page of the newspaper?