Section outline

    • There are two broad categories of non-profit board: operational and governing.  

      Operational boards

      Young organizations without a lot of funding will tend to have operational boards. These will deal with long term strategy as best they can, but directors will also roll up their sleeves and help out with daily business... very often, because there is no paid staff to do it. Naturally, they won't have as much time to spend on planning, but at this stage, the main concern of the board is getting an organization off the ground, or simple survival. 

      Governing boards

      A well-funded, more mature organization is likely to hire staff to conduct all the day-to-day business, and will be more concerned with the long term objectives of the organization, with advocacy, finding funding sources, developing policy and community relations. The board may have specialized members to deal with financial and legal issues and rarely interact directly with staff.

    • As organizations mature they will likely move from an organizational to a governing board. Chances are, you'll find yourself on a board that is some mix of the two, depending on how mature your organization is.

    • Activity - Operation or Governance H5P

      Are these tasks operations or governance? Drag them onto the correct picture.

    • The budget

      While the responsibilities of a board will vary from organization to organization, there is one that is fundamental to all boards. Every year, the board of directors must approve the organization's annual budget. Then, they must review finances periodically to make sure the organization stays within it.

      If a station has a governing board, the budget may first be drafted by staff in collaboration with the board's budget committee or treasurer. An operationa board, with few or no paid staff, may draft the budget themselves.

      Expenses are determined by summing the cost of each project in the organization's strategic plan (see below), along with operating expenses. A revenue projection is calculated based on known upcoming grants, donations and other income.

      The Muttart Foundation recommends sticking closely to past patterns of revenue and expense. 

    • Financial Responsibilities of Not-for-profit Boards

      The Muttart Foundation

      A deep dive into financial management at a non-profit. Covers topics like opening a bank account, writing cheques, and approving loans as well as planning activities like drawing up a yearly budget and making sure the organization stays within the budget.

    • It is very important not to overestimate revenue or to underestimate expenses. Leave a margin above or below your estimates in case expectations are not met. It is very easy for a staff member, passionate about a project, to be overly optimistic about future. Board members, especially those with experience in business or  other non-profits, can inject some realism into the budget discussion.

    • CBAZ 2026-2027 budget

      Revenue Amount Expense  Amount
      Municipal Arts Grant $2,000 Payroll $16,596
      Summer Student Funding $23,123 EI $384
      Advertizing $3,500 CPP $891
      CRFC Grant $2,100 Accounting  $200
      Sponsorships $200 Insurance $3225
      Donations $3,050 IP-16 Mixer $15,500
      Fundraising $3,200 Utilities $1650

    • Look at the CBAZ budget. Is the station under or over budget? What would you change on either the revenue or expense side?

    • Other responsibilities

      Apart from the budget, there are many other areas where the board plays an important role. How active you are in each area will depend on the type of board you have (operational versus governing) and the expertise of your members.

    • Strategy

      Whether the board develops the station's long term strategic plan itself, or delegates it to staff, it is always the board's responsibility to ensure the plan is realistic and that it is being followed.

      Risk Management

      The board should understand the station's tolerance to risk, and ensure staff are aware of potential sources (financial, compliance, ethical etc.) 
       

      Setting the tone

      If a board display passion, ethical standards, and openness staff will follow suit. Directors should establish good relations with staff that foster committment to strategic plan, and to each other.
       

      Integrity

      A board that honours rules and regulations and keeps the books in order will inspire confidence among stakeholders and the public. A good reputation will pay off when it comes time to seek donors and partners.

      Performance evaluation

      A board should conduct regular evaluations of staff, in particular the station manager, the station, and itself. There should be documentation and written in place to ensure evaluations are fair and timely.

      Recruitment

      The board is responsible for hiring the Station Manager. This doesn't just mean reviewing resumes and interviewing. The board should be actively searching the community for candidates. It should also have a solid succession plan so momentum is not lost during transitions.  

      Policy

      Decisions made ad hoc lead to resentment and disfunction. The board should develop policy documents to guide major decisions on ethical conduct, conflict of interest, whistleblowing, employment, and of course the board's own bylaws. 

      Compliance

      It is the board's responsibility to ensure that the station follows all laws, such as those governing employment, taxation, CRTC licensing, fundraising and non-profit governance. 

      Community 

      Directors are ambassadors for the station. They should be promoting it among their network, helping forge partnerships, grant opportunities and audience. And they should feed what the community tells them back to the station. 

    • And while some boards are focused on long term planning and strategy, Joe Delaronde says it was more important for his board to set a tone of stability and collegiality at K1037.

    • Making staff feel comfortable

      Joseph Delaronde

    • Read more

      You can find out more about Board responsibilities through Deloitte's publication the Effective Not-for-Profit Boardc, the NCRA's Board of Directors Handbook, both cited in the previous sections of this course, and this handy document from the non-profit Friends of Kootenay lake. Although the organization's mission is very different from a community radio station, the document is a good demonstration of the skills of a non-profit board member can be applied across many different industries. 

    • Ten Basic Responsibilities of Non-Profit Boards

      Friends of Kootenay Lake

      This document covers many of the responsibilities of a board that we have so far seen in this module, with a focus on the Governing Board. It also covers some that we will see in future modules, including community advocacy, appeals and performance evaluation.

    • Quiz 3
      Students must
      Receive a grade
      Receive a passing grade