Nonprofit boards face common challenges everywhere: accountability, recruitment, participation, and fundraising. Sound familiar? If you're nodding along, you're not alone. These issues come up in nearly every organization we work with.
Recently, Park Bank hosted Jeff Burkhart from Mission Forward for a webinar on building better boards. Jeff shared practical tools and strategies that can transform how your board operates. Here's what we learned.
Start with the Legal Foundation
Before diving into improvements, board members need to understand their legal duties. Every nonprofit board member has three key responsibilities:
Duty of Care means using your organization's assets wisely - not just money, but staff, facilities, and reputation. Make thoughtful decisions with the organization's best interests in mind.
Duty of Loyalty requires avoiding conflicts of interest and putting the organization first. This includes signing annual conflict statements and not using insider information for personal gain.
Duty of Obedience means following all laws, policies, and staying true to your mission.
These aren't just suggestions. They're legal requirements that protect both your organization and board members.
Four Areas That Make Boards Work
Jeff outlined four core competencies that separate high-functioning boards from struggling ones:
1. Strategy That Actually Drives Action
Your mission, vision, and values shouldn't collect dust on a shelf. Review them every few years and make sure they still fit your work. Then create specific strategic initiatives that guide everything your board and staff do.
The key? Your strategic plan should be a living document. Reference it in every board meeting. Update it quarterly. Make sure your executive director's reports follow the plan's structure.
If something new comes up that doesn't fit your current strategy, either update the plan or question whether it's worth pursuing.
2. Resources and Accountability
One of the most practical tools Jeff shared is a Board Roles and Responsibilities Agreement. This document spells out exactly what's expected of each board member - from meeting attendance to committee participation to financial giving.
When everyone signs this agreement, they know what they're committing to. Board leaders can have honest conversations with members who aren't meeting expectations. Sometimes this leads to renewed engagement. Other times, it creates space for new, active members to join.
A board matrix is another helpful tool. List the skills and experience of current members, then identify gaps. This makes recruiting new board members much more strategic.
3. Real Oversight
Effective oversight happens in three areas: financial, human resources, and programs.
Financial oversight means working with an external auditor annually, even for smaller organizations. Auditors don't just check your books - they suggest internal controls that protect against fraud and improve processes.
Human resources oversight includes hiring, supporting, and evaluating your key staff. Put these reviews on your annual calendar and stick to them.
Program oversight involves gathering feedback from the people you serve and tracking outcomes. Your board should understand how programs are performing, but trust staff expertise in program delivery.
4. Operations That Support Success
Operations covers everything from CEO hiring to board recruitment to meeting agendas. One key insight: make sure your board meetings focus on future actions, not just past reports.
Create committees that align with your strategic initiatives. If community outreach is a priority, form a marketing and outreach committee. Most boards have finance and development committees, but many miss opportunities for better community engagement.
Making Changes Happen
All this might seem overwhelming, but you don't need to implement everything at once. Start with your biggest challenge.
If accountability is your issue, begin with the Board Roles and Responsibilities Agreement. Bring it to your board leadership, modify it for your organization, and get everyone to sign on.
If recruitment is your struggle, create a board matrix to identify skill gaps, then recruit strategically.
Remember, you don't have to be the board president to start these conversations. Any board member can bring these tools to leadership and ask, "What do you think about trying this?"
The Bottom Line
High-functioning boards don't happen by accident. They require intentional structure, clear expectations, and ongoing attention to improvement.
The good news? You're not starting from scratch. Every board has strengths to build on. The goal isn't perfection - it's progress toward becoming more strategic, accountable, and effective.
When boards work well, organizations thrive. Staff feel supported, volunteers stay engaged, and most importantly, the community benefits from your mission-driven work.
That's the kind of impact we're here to support. Whether you're serving on a board or supporting one, remember that your next step forward doesn't have to be perfect - it just has to be intentional.
For more resources on nonprofit board development, including the tools mentioned in this post, visit Jeff Burkhart's website at missionfwd.org. Park Bank is proud to support nonprofit organizations throughout our community with educational resources and financial services designed for mission-driven work.
Park Bank