NCVO guidance on the 12 Essential Board Responsibilities
Determine the organisation’s mission and vision
Only the Trustee Board has the power to create and change an organisation’s essential mission and vision. Every policy decision the Board makes is designed to help the organisation realise the aims laid out in the mission.
Engage in strategic planning
Trustee Boards make strategic policy and work with the chief executive officer (CEO) to develop long-term strategic plans. Ideally, they tie their meeting agendas to specific points in the strategic plan to ensure they are dealing with key issues.
Formulate needed policies
The Board creates policies to govern organisational activity, providing guidance for staff, setting up systems for reporting and monitoring, and establishing an ethical framework for all those who work for or on behalf of the organisation. It also creates policy governing the behaviour of trustees and all aspects of Board business.
Approve and monitor the organisation’s programmes and services
The Board ensures that all the organisation’s programmes and services obey the letter of the law and effectively serve the organisation’s mission. The Board’s vision for the organisation determines what direction programming will take.
Ensure adequate financial resources
Trustees make sure that the organisation has the resources to carry out its mission. This may involve creating policies governing financial reserves and fundraising practice. In some organisations, the trustees themselves are active in raising funds.
Provide effective fiscal oversight and ensure sound risk management
The Trustee Board approves the annual financial statement and budget, monitors spending, creates policies to manage and protect organisational assets and property, and ensures that finances are handled according to the letter of the law in the best interests of the organisation. It also protects the organisation against liability by providing adequate insurance and creating policies designed to minimise the amount of risk the organisation is exposed to.
Select and support the chief executive officer (CEO) and review his or her performance
The Board creates policy covering CEO remuneration, hires the CEO and is in charge of conducting his or her annual assessment. The Board is also responsible for developing and supporting the CEO.
Understand and respect the relationship between Board and staff
The Board needs to recognise areas of staff responsibility and avoid interfering in matters that are properly the domain of staff. At the same time, it creates policy to guide staff activities and safeguard the interests of the organisation.
Act as a responsible employer
The Board creates comprehensive, fair personnel policies that meet legal requirements and protect both the organisation and those who work for it. It monitors organisational activity to make sure that practice lives up to policy.
Enhance the organisation’s public image
Through their own behaviour, their governance oversight and their activities on behalf of the organisation, trustees enhance and protect the reputation of their organisation.
Carefully select and induct new Board members
The Board ensures the quality of governance for the organisation by carefully selecting and training new Board members. It recruits and develops individuals who can provide the best leadership for the organisation.
Carry out Board business efficiently
The Board keeps its own house in order by conducting productive meetings where key organisational issues are dealt with in an efficient way. It creates effective committees and provides them with adequate resources and personnel. It hires consultants to bring needed expertise into the organisation. It engages in regular performance appraisals, periodic self-assessment and development activities to strengthen its effectiveness.
