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Common Board Governance Mistakes

Board governance can directly impact how effective and successful a nonprofit organization can become. Governance relates to fulfilling the nonprofit’s mission as well as ensuring its sustainability. Whether you’re a long-standing member or newly elected, it can be easy to succumb to common mistakes that occur through governing a nonprofit. Below are a few common board governance mistakes and some suggestions to avoid them.

    1. Misunderstanding of roles and responsibilities – Creating job descriptions for each board position can help the overall performance and success of the board.
    2. Outdated governing documentation – Conducting annual reviews of all governing documents and policies can ensure your nonprofit is following their mission and purpose.
    3. Not requiring continuing education – Between law changes and the legal and ethical responsibilities that come along with governing a nonprofit, offering regular and flexible education options can ensure your board is up to date.
    4. Failing to provide effective oversight – It is possible to provide too little or too much oversight. Focusing on communication and transparency can help the board to better understand the amount of oversight that is required and helpful within your nonprofit.
    5. Failing to cultivate board diversity and inclusion – A board that reflects both diversity and inclusion within their members will help bring about new points of view and different ideas. Diversity addresses differences in race, gender, religion, age, or sexual orientation while inclusion allows for all members to feel welcomed, respected and valued.

If you have any questions, or need further information, please contact your trusted TBC advisor.

By: Christina Gerasia, CPA

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