Forming and Using Committees Effectively
A board of directors is an integral part of every nonprofit, and the work of the board can be enhanced by the effective use of board committees. This resource provides effective tips on the role of committees, common types of committees, and how they are formed and supported.
Role of Committees
The role of the board is to govern and set policy for the organization. The role of committees is to assume responsibility for a specific component of the board’s work. Although committees are more “hands on” with the work they accomplish, it is important to clearly differentiate board and committee work from roles that belong to the organization’s staff. In general, board and committees are responsible for organizational oversight while staff is responsible for day-to-day operations and management. The difference between board, staff, and committee work will be covered in more detail at the end of this resource.
Committee Formation
As an organization begins to build out or improve its committees, it is important to follow a few basic guidelines:
- Committees should only be established if they are needed for the long-term development of the organization. Boards govern, and committees work. With that in mind, most nonprofits choose to have finance, fundraising, operations, and board development committees. If an organization has shorter-term goals, such as the planning of a one-time special event or an office move, it is usually better to establish a time-specific task force instead of a committee.
- Committees should have clear goals, and committee members should have job descriptions that outline roles and responsibilities.
- As with board membership, committee members should have term limits.
- Each committee should have two or more board members, and no board member should serve on more than two committees. Each committee should have a chair as well as a secretary who is responsible for taking minutes. In order to insure clear communication between staff and volunteers, a senior staff person should be assigned to each committee that is formed.
- At each board meeting, committee chairs should report on the work that they have accomplished. This builds accountability between the board and committees and insures that the committees are accomplishing the work they have been tasked to accomplish.
Core Committees
Many nonprofits have the following four committees that cover the basic strategic and policy direction of the organization: Finance, Fundraising, Operations, and Board Development.
- Finance. Because the board is legally responsible for the organization, including how finances are handled, the finance committee is the most important committee of the board. The Finance committee is responsible for monitoring the over-all financial health of the organization. This includes overseeing the development of the annual budget, reviewing monthly revenue and expenditures and reviewing and recommending financial policies to the board.
- Fundraising. While everyone on the board should be engaged in fundraising activities, the fundraising committee can play a key role in training and encouraging board members as they work to raise funds on behalf of the organization. The fundraising committee also tracks progress on specific fundraising goals and helps insure that the fundraising goals of the strategic plan are met.
- Operations. An operations committee is charged with making sure that the organization has policies in place to ensure compliance with all state and federal laws with regards to employment and the operations of the organization Selection, oversight and compensation of the CEO is also a task of the operations committee. In addition, this committee reviews and makes recommendations on human resource policies, benefit selection and retirement plans, if applicable.
- Board Development. Every nonprofit organization needs to evaluate the effectiveness of its current board, look for educational opportunities to enhance skills, and screen and nominate potential new board members. The board development committee is critical to the long-term success of the organization because it ensures that qualified individuals with the right skills are being identified and recruited for current and future board and committee positions.
Additional Committees
Larger organizations or those with specific needs may choose to have one of more of the following committees.
Investment
If an organization has an endowment fund or other funds that are or can be invested, an investment committee can establish investment policy as well as screen potential investment advisors.
Executive
Nonprofits with larger boards may find it helpful to have an executive committee that is typically comprised of the board’s officers. This committee can meet between regularly scheduled board meetings and is authorized to act on behalf of the full board on urgent matters.
Audit
Some states, including California, require a nonprofit organization to have an audit committee. While a finance committee oversees the monthly financial reports, an audit committee is responsible for insuring that reports are prepared and disseminated according to the organization’s policies, that adequate controls are in place, and that the policies and procedures are in line with state and federal laws.
Forming Committees
The first step to forming committees is to review the organization’s strategic plan and determine which committees would best support the work that the board needs to accomplish. While the committees outlined above are common, make sure that your organization does not establish committees that will not be needed for the long term. Remember that less is more, and it is better to start with one or two committees and get those running well rather than to poorly launch several committees at one time.
The next step is to develop job descriptions for each committee that outlines the goals and objectives of the committee as well as the desired skill set(s) of committee members. The job description should also include the anticipated time commitment, including attendance at committee meetings. If your board meets quarterly, a good rule of thumb is to schedule committee meetings for the months between the board meetings, so that you would have a total of eight committee meetings per year.
Once the job descriptions are developed, it’s time to recruit committee members, including a committee chair. Begin by looking at the current board members and seek out those who have skills and passion for a particular committee area. Ensure that people selected for the committee can commit to the meeting schedule and work involved. Reviewing a committee member’s job description with a potential committee member can help with this process. It is also important to remember that an organization can increase its capacity by asking volunteers and potential board members to serve on committees. In fact, many organizations use committees as a way to “try out” potential board members before asking them to make a commitment to join the board.
Using Committees
Committees, like boards, need to be evaluated and supported by staff in order to be effective. Many of the best practices of good boards also apply to creating and developing strong committees. These include:
- Setting committee meetings well in advance.
- Encouraging attendance and engagement of committee members.
- Documenting meeting notes and adequately preparing to present reports to the full board.
- Assessing the committee’s effectiveness on an annual basis, including reviewing the role and contributions of each committee member.
Additional Information
- More information on committee structures, including job descriptions and best practices can be found in Boardsource’s committee reference series: http://www.boardsource.org/Bookstore.asp?Item=146
- Ideas and additional information for how to keep committee members active and engaged are highlighted in the Management Help Library: http://managementhelp.org/boards/activating-committees.htm
