The Nonprofit FAQ

How Do We Evaluate the Board of Directors?
The effectiveness of the nonprofit Board of Directors can be
enhanced by
regular assessment of its activities and performance. An assessment
process can help board members to understand their role, and
encourage
fulfillment of board responsibilities. The process need not be
complicated; it can placed on the agenda of a board meeting, or
occur
regularly within board meeting discussions through questions that
serve
to refocus the board on larger issues. For example, a useful
strategy is
to conclude board meetings by asking board members to rate the
meeting
on an index card: Were the issues covered today significant? Did the
materials you received prior to the meeting adequately prepare you
to
participate in the discussion? Did the board conduct matters of
managem
ent or policy? Overall, was the meeting worth your time? A steady
stream
of feedback created by these responses and used by the board chair
and
executive director can greatly improve the value of board meetings.

An annual board assessment gives each board member the opportunity
to
evaluate the board's overall effectiveness at accomplishing its
goals in
a variety of activity areas. It can be scheduled to occur during a
board
meeting, or completed by board members on their own time and
returned to
the agency. Results of the evaluation can be shared at the next
board
meeting, and appropriate follow-up then determined. A ranking system
reflecting the level of accomplishment within each task may be
useful
(1= effective performance, 2=adequate performance, 3=inadequate
performance, U= uncertain), and activities can be grouped into the
following categories:


  • Knowledge of board financial, legal and public responsibilities
  • Representation to the public by the board
  • Understanding and communication of the organization's mission
  • Organization's compliance with legal regulations, licensing and
    other
    standards
  • Effectiveness of board practice: Bylaws, committees, procedures
  • Approval of outside counsel (legal, accounting, managerial)
  • Relationship with the Executive Director
  • Hiring, evaluating, managing, and compensating the Executive
    Director
  • Strategic planning
  • Policy development and approval
  • Oversight of organizational financial structure and activity,
    including
    income, expenses, borrowing, insurance coverage, audits, bank
    relations,
    fund-raising, and other financial procedures
  • Board performance: meeting attendance, discussion participation
  • Board succession and nomination process
  • New board member orientation


For further information, see, among others, Doing Good
Better!, by Edgar
Stoesz and Chester Raber, published in 1994 by Good Books,
Intercourse,
PA., and other listings in the Board Member Resource Catalog
available
from the National Center for Nonprofit Boards (800/883-6262).
(Order from Amazon.Com: http://www.amazon.com/Doing-Good-Better-Edgar-Stoesz/dp/1561482242 )

May 22, 1996



For more information contact:

Minnesota Council of Nonprofits

2700 University Ave. W. #250

St. Paul, MN 55114

Phone: (612) 642-1904

Fax: (612) 642-1517

http://www.mncn.org

email: mcn@mncn.org


The Free Management Library provides two alternative approaches to (including directions and forms) to evaluating the executive director. See http://www.mapnp.org/library/boards/brd_eval.htm and http://www.mapnp.org/library/org_eval/uw_brd.htm .


Reposted with minor corrections 1/15/99 -- PB; revised 8/11/99 -- CM; keyword revision 8/19/99 -- CM