The perfect board governance is a challenging concept to achieve. It is a goal boards must strive for. They can achieve it when boards are aware of what good board governance should look like.
To do so boards need to be arranged correctly, well-chosen and directed towards the future. They must be able to manage the needs of the organization with the needs of its stakeholders and shareholders. They must also be capable of dealing with new regulatory demands as they develop.
In the end, the success of a non-profit organization is contingent on its board’s ability overcome these challenges and ensure that it is well-positioned for a sustainable future. A well-run board can help its trustees fulfill their roles and help the community by ensuring the programs of the organization are healthy or are on track to achieve accreditation.
Setting up a board agenda and schedule is a crucial element of the structure. It must be clear enough for directors to discern the issues that need their attention, and which ones can be delegated to committees or management. It should also state the times when the board needs to be informed or consulted on issues that do not require a decision from the entire board.
Finally, boards must be able recognize their own shortcomings and areas to improve. An annual review is beneficial because it allows the board to assess its performance to that of its peers.