March 18th, 2007There has been increased attention in the for-profit and not-for-profit world in the past few years on transparency and accountability. With the enactment of the Sarbanes-Oxley Act in 2002 affecting publicly traded corporations and the increased scrutiny of the non-for-profit community by Congress and other regulatory bodies, it is absolutely essential that every corporation regardless of its profit or nonprofit orientation, has a fully engaged board of trustees/directors. This means that board members show up for meetings, read their materials in advance, seek clarification and understanding of the financial condition of the organization, expect goals and objectives, conduct performance reviews on the President/Executive Director and much more.
To keep an organization vibrant and effective, a vibrant and effective governance structure is essential. Board members are not there as placeholders in the nonprofit organization; they are there to serve the community by acting as good stewards of the resources of the not-for-profit. Expecting excellence in all aspects of the organization is critical.