An organization’s board committees are in charge of everything from finances to public relations to the chief executive’s performance. The number of committees necessary depends on the size of the organization, its bylaws, its services, and the size of its board of directors.
The Function of Board Committees
Most boards have members who specialize in areas such as finance, legal issues, or public relations. These professionals contribute their professional expertise to the organization in order to help it achieve its goal and vision.
It would be impracticable for the full board of directors to meet and debate every problem concerning the organization in detail. Board committees are responsible for streamlining operations by managing specific areas such as finance, governance, and public relations, among others. Instead of attending every committee meeting, board members only attend those that are relevant to their area of expertise.
The Different Types of Board Committees
The size and structure of a charity determine the sorts of board committees that can be formed. To keep things simple, several NGOs use a three-committee structure. These organizations’ committees are as follows:
Internal Affairs: This committee is in charge of the organization’s internal operations, such as money, facilities, and human resources.
External Affairs: This committee is in charge of the organization’s outside operations, such as public relations, marketing, and fundraising.
The Governance Committee is in charge of overseeing the board’s performance, as well as hiring and training new members and developing board materials.
When an organization has a big board of directors and these three committee meetings do not effectively handle the company’s operational requirements, get clogged with lengthy agendas, or include too many individuals, more committees may be required. The committee organization changes, and the internal affairs, external affairs, and governance committees’ responsibilities are largely shared amongst four new committees. A broader committee structure can be productive, but it can also present more potential for communication snafus and make operations appear clumsy.
The Executive Committee (EC)
The executive committee is usually made up of the executive director, the board chair, the vice chair, the secretary, and the heads of each committee. Between board meetings, the executive director contacts the executive committee to resolve matters that cannot wait until the next meeting, as well as to set agendas for board meetings.
Organizational concerns are usually brought to the attention of this committee before the rest of the board. To prevent building a “we and them” attitude, care must be made to maintain open communication with the rest of the board.
Concerning the Finance Committee
The finance committee is in charge of the nonprofit organization’s budget and financial activities, including taxes. This committee includes the chair, vice chair, executive director, and secretary, as well as the most competent board members.
Many boards purposefully include members with accounting or legal experience on this committee. They provide their knowledge to assure the nonprofit’s financial stability and ability to fulfill its goal and vision.
The Fundraising Committee’s Background
Nonprofit organizations rely on donations and financial assistance to provide the valuable services they provide to the community. After removing factors like board donations and grants, a portion of the nonprofit’s budget shows how much money must be earned each year.
The goal of this group is to broaden the organization’s reach, coordinate fundraising initiatives, and help board members as they seek donor support.