smARTstart

Every corporation – for profit and not-for-profit – needs a strong and effective board of directors. A nonprofit arts organization is no different. Its board of directors or board of trustees is ultimately responsible for the financial and general management of the organization. It is legally responsible for the actions of the corporation and must ensure that the organization adheres to all applicable laws and the parameters defined in its by-laws and articles of incorporation.

Simply put, the board has the responsibility to provide oversight, lead, strengthen, and support the nonprofit arts organization.

For a small or relatively young organization, the board typically serves as what is considered a “working” or “hands-on” board, doing everything the organization needs from putting up the exhibit to distributing flyers to raising money to pay the artists, in addition to its oversight activities. This board often consists of the founder(s) and a small group of his/her friends and colleagues, which begins to expand as it engages others with new areas of expertise and knowledge that help fulfill the organization’s needs.

With the addition of staff, the board frequently evolves into what is often called a “policy” board and begins to focus more heavily on governance. Governance can be defined as 'the exercise of authority to ensure a functioning method or system of overall management.' Good governance lies at the heart of great organizations because it not only protects the corporation from liability but provides an entire framework for growing the organization, dealing with change, and furthering the mission. Governance includes many functions including the hiring and evaluating of the executive director, developing and approving budgets, strategic planning, and ensuring legal and contract compliance. Governance also involves asking the tough questions that will keep the organization true to its mission, effective, successful, and healthy.

In addition to oversight, all nonprofit organizations depend on their board members to provide support through personal financial contributions, raising money, special skills and expertise, and as advocates and ambassadors for the organization in the community. While fiduciary responsibilities never diminish, it is typical for mature boards to spend a significant proportion of their time and energy on advocacy, fundraising and resource development once the core structures and systems of the organization are in place.

To get started, we've selected some resources below that provide general toolkits for boards dealing with a broad range of issues. The sub-sections that follow in this chapter explore specific functions and areas of board activity, from roles and responsibilities, to structures, development and best practices.

General Resources

1. Free Complete Toolkit for Boards from the Free Management Library
2. Board Toolkit from Governance Matters
3. Nonprofit Resource Kit, Norfolk Foundation
4. Midwest Center for Nonprofit Leadership: Board Resources
5. Grant Thornton Guide to Board Membership