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 Topic of the Month 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 paper.
Committee Formation
As an organization begins to build out or improve its committees, it is important to follow a few
basic guidelines:
1. 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.
2. Committees should have clear goals, and committee members should have job descriptions
that outline roles and responsibilities.
3. As with board membership, committee members should have term limits.
4. 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.
5. 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.
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1. 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.
2. 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.
3. 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.
4. 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
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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:
1. Setting committee meetings well in advance.
2. Encouraging attendance and engagement of committee members.
3. Documenting meeting notes and adequately preparing to present reports to the full board.
4. Assessing the committee’s effectiveness on an annual basis, including reviewing the role
and contributions of each committee member.
Additional Information
1. 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
2. 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
Kimberly Reeve is a Managing Director in the New York Office of Cathedral Consulting Group,
LLC. Peter Giersch is COO of Cathedral Consulting Group, LLC and a Managing Director in the
Midwest Office. Michelle Fitzgerald is a former Senior Associate in the New York Office of
Cathedral Consulting Group, LLC.
For more information, please visit Cathedral Consulting Group LLC online at
www.cathedralconsulting.com or contact us at info@cathedralconsulting.com.
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