Nonprofit Board Development Flashcards

What is the most effective way for a board to evaluate the performance of the executive director?

Answer: Through a structured annual review with clear, pre-established performance criteria

A formal, criteria-based annual review tied to organizational goals and previously agreed metrics ensures fairness and accountability.

Which of the following represents an inappropriate board-staff relationship?

Answer: Individual board members directing staff without going through the executive director

Board members should work through the executive director rather than directly supervising or directing staff to maintain clear authority boundaries.

What is the purpose of a board 'consent agenda'?

Answer: To bundle routine, non-controversial items for approval in a single vote, freeing time for strategic discussion

Consent agendas improve meeting efficiency by grouping pre-reviewed routine items so the board can spend most of its time on substantive governance.

A board is considering adding a compensated staff member as a voting board member. What is the primary concern with this arrangement?

Answer: It creates a conflict of interest as the employee would participate in decisions about their own compensation and oversight

Staff serving as voting board members can compromise independence and create inherent conflicts, particularly around compensation and performance reviews.

What is 'nose in, fingers out' as a governance principle?

Answer: The board should stay informed and ask questions (nose in) but not meddle in operations (fingers out)

This principle captures the governance-management boundary: boards oversee and hold accountable without crossing into day-to-day operational management.

When building a more diverse and inclusive board, which approach is considered best practice?

Answer: Establishing diversity goals in the board matrix and proactively seeking candidates from underrepresented communities

Intentional recruitment using a skills/diversity matrix and expanded outreach beyond existing networks is the most effective path to a more representative board.

What is the key difference between a board policy and a board resolution?

Answer: A policy is an ongoing governance guideline; a resolution is a formal one-time action or decision

Board policies establish standing rules for governance and organizational behavior, while resolutions record specific formal decisions made at a point in time.