How to Improve Board Performance for Your Nonprofit?

Board performance of your nonprofit is the main link in the company’s corporate governance system. The main functions of the board of directors are traditionally considered to be strategic management and management control.

The Role of the Board Performance in the Corporate Governance System for Nonprofits

Over the past decade and a half, regulatory authorities, investors, and financial infrastructure institutions have sharply increased their attention to corporate governance issues in companies issuing securities, primarily shares. This attention is expressed in the fact that an ever wider range of elements of corporate governance practices of companies is becoming the object of close analysis and evaluation.

The best board performance for your nonprofit is a key link in an effective corporate governance system. The effectiveness of the company depends on what tasks the Board sets for the management, what questions it asks during meetings, how carefully it checks and analyzes the information received from the management.

The board performance is a concept that covers the system of relationships between the executive bodies of the JSC, its board of directors, shareholders, and other interested parties. Corporate governance is the basis for determining the goals of the company, determining the means to achieve these goals, and mechanisms for controlling its activities by shareholders and other interested parties.

The formation of the board performance for nonprofits is influenced by economic, political, legal, cultural, historical factors:

    • shareholding structure in a corporation;
    • features of the financial system;
    • state of financial markets;
    • types of financial institutions;
    • the ratio of sources of financing of the corporation;
    • history of development and modern features of the legal system and culture;
    • macroeconomic situation and economic policy in the country;
    • political system;
    • traditions and degree of state intervention in the economy and its role in regulating the legal system;
    • established practice of business relations, etc.

Effective Board of Directors as the Best Way to Improve Your Nonprofit

Imagine that you have found a magic pill that could bring donations to your organization. You would swallow it in an instant, right? I have good and bad news for you. The bad news is that there is no magic pill. If you want to generate consistent, sustainable income for your non-profit organization, you must set up a fundraising system. The good news is that there are quick ways to set up fundraising mechanisms, saving you valuable time and money.

The Board of Directors on a regular basis analyzes the compliance of the corporate governance system and corporate values in the Company with the goals and objectives of the Company, as well as the scale of its activities and the risks it takes. The Board of Directors evaluates the activities of the executive bodies of the Company and the work of management.

Unlike the competence of the general meeting of shareholders, the meeting of shareholders in general, the competence of the council is not limited by law, i.e. shareholders, at their own discretion, may supplement the competence of the council in the articles of association with certain issues that are not within the exclusive competence of the general meeting of shareholders. If the articles of association contain additional powers of the board, then they must be defined in such a way as to eliminate ambiguity in the delimitation of the competence of the board and other bodies of the company. The Code of Corporate Conduct can serve as a source of such additional competence issues.