|Board members must provide both strategic leadership and steady stewardship, with a focus on financial sustainability. It is the responsibility of each board of directors, individually and collectively, to identify, adopt, and implement policies and practices of good governance.|
What "governance" means
Governance is the process of providing strategic leadership to an organization. It includes the functions of setting direction, making policy and strategy decisions, overseeing and monitoring organizational performance, and ensuring overall accountability.
Nonprofit governance is primarily the province of an organization’s governing board, often known as a board of directors or board of trustees. However, in larger organizations that employ staff, it is not unusual for others to be a part of the governance process, as well. In particular, it is common for the chief executive officer of the organization to play a very active role
However, the governing board is ultimately accountable for all acts undertaken in the name of the organization, whether or not those acts are formally approved or implemented by the board itself. This accountability exists regardless of the size or nature of the organization and regardless of whether the organization employs staff. Therefore, members of nonprofit governing boards must recognize that they have certain legally enforceable duties and obligations by virtue of their membership on the board.
Look for more information and guidance in the Governance menu on this page.