From strategic planning and managing performance to financial oversight and managing compensation, a successful church board of directors has a significant impact on the functioning of a church. Other duties the board typically handles include guaranteeing legal compliance, ensuring no conflicts of interest exist, maintenance of board records and providing board training.
A church board of directors is responsible for defining the organization's core mission and implementing a strategy for how to achieve it. Through a formal process, the board develops the church's mission, vision and values statements and administers oversight to help achieve goals.
A board of directors is responsible for managing leadership and holding the leadership accountable. It develops annual goals and establishes boundaries so that leadership can reach the goals effectively. By approving and overseeing the annual budget, the board is responsible for financial accountability within the church. Part of this includes offering input about the budget and developing priorities for spending, while another facet is to ensure that appropriate financial resources exist to implement the budget. Financial oversight includes the identification of outside auditors to safeguard against non-compliance with state and federal laws.
The board of directors makes recommendations about leadership salaries and housing allowances. It also makes sure that the church adheres to governing laws while acting in accordance with the stated mission and values.