Board Division Structure and Systems
Meeting 5 – Board Division Structure and Systems
The Board Division Structure and Systems training focuses on key areas related to board division, committee structures, and transparency. This section is divided into four sections:
- Committees: This area emphasizes the importance of a lean and strategic standing committee structure that complements ongoing board activities. It recommends utilizing time-limited task forces to address specific activities efficiently and make the best use of board members’ time, interests, and expertise.
- Executive Committee: If the board has an executive committee, this area highlights the need to define its purpose and authority level in the bylaws. Before forming an executive committee, the board should assess the overall structure to determine its value. If the executive committee is granted decision-making authority on behalf of the board, the bylaws must clearly outline the limits of this authority. Decisions made by the executive committee should be confirmed by the full board at subsequent meetings to maintain overall board control and transparency.
- Governance Committee: This area stresses the importance of either establishing a governance committee or ensuring that the necessary functions are carried out within the board. The governance committee takes the lead in recruitment, ongoing board development, leadership development, board and member assessment, board education, and ensuring that the board is equipped with the proper guidelines and structure to perform effectively.
- Form 990 Posting: This area recommends that nonprofits post their Form 990 on their own website. Form 990 is a public document that provides insight into the organization’s finances, activities, and governance practices. By making Form 990 easily accessible on the organization’s website, the board supports transparency and promotes systematic disclosure of information.
Through these four areas, the Board Division Structure and Systems section of the training program equips boards with the knowledge and strategies to establish effective committee structures, clarify executive committee authority, prioritize governance functions, and promote transparency through Form 990 posting. By focusing on these areas, boards can streamline their operations, enhance board effectiveness, and strengthen their commitment to transparency and accountability.