Center for Association Resources

The Center for Association Resources supports mission-oriented organizations, assisting them in increasing relevance and accomplishing goals.

Importance of committees

Another in a series of articles related to association management selected from our reading list by:
Robert O. Patterson, JD
CEO/ Principal
The Center for Association Resources, Inc.

No matter how large or small a nonprofit organization may be, there are four board committees that are essential to the well-being of the organization and the board itself.  These four committees include the Board Development Committee, the Finance Committee, the Fundraising Committee and the Personnel Committee.

The Board Development Committee is responsible for determining what skills a board member should possess and recruiting and training newly-hired members of the board.  Members of this committee regularly communicate with the board members.  They make sure that the members of the board are making positive contributions and that their board experiences are satisfying to them. The Board Development Committee also creates member evaluations and administers and interprets them.  In short, the job of this committee is to ensure the strength of the board’s future.

The Finance Committee’s job is extremely valuable.  The Finance Committee is responsible for many things, including creating a suitable annual budget, tracking the nonprofits spending versus its budget, monitoring the group’s monthly cash flow and evaluating the overall financial stability of the organization.  This committee not only develops the annual financial plan, but they develop a long-term strategic, financial plan, as well.  Any financial policies regarding the nonprofit must pass approval of the Finance Committee before submitted to the board.  Some nonprofits employ Audit and Investment subcommittees to help “round out” the board’s involvement in financial issues of the organization.

The Fundraising Committee is also a vital part of any nonprofit group.  The Fundraising Committee develops the organization’s annual fundraising plans and then tracks the planned versus the actual results each year.  It is their duty to encourage and train the nonprofit’s members to become involved in any fundraising activities held by the group.  They also look for any new activities that they can implement into their strategic fundraising plans.  Special events subcommittees are often established to assist with these plans.

Even small or young nonprofit groups need a Personnel Committee on their boards.  The main goal of this committee is to make sure that the members of the group follow all state and federal laws and regulations with regard to employment.  They also ensure that the wages paid to members in the nonprofit are comparable to wages in similar organizations.  They see to it that every member has job descriptions, yearly objectives and annual reviews that include training when needed.  Other responsibilities of this committee include creating and issuing employee handbooks, creating human resource policies, hiring, benefits selection, pension considerations and creating holiday schedules.

In conclusion, all nonprofits need these four committees to be successful.  Each committee is equally beneficial to the group and unique in its responsibilities.  A nonprofit that has all four of these committees in place is certain to run smoothly and be highly successful in their cause.