In order to obtain board diversity, the board of an organization should include members with diverse backgrounds (including, but not limited to, ethnic, racial and gender perspectives), experience, and organizational and financial skills necessary to advance the organization’s mission.
- A board should have a variety of skills, expertise, backgrounds, and perspectives in order to make informed decisions.
- Boards of charitable organizations generally focus on including members with expertise in budget and financial management, investments, personnel, fundraising, public relations, and marketing.
- Every board should have expertise in budgeting and financial management.
- The board must ensure that all financial matters of the organization are conducted legally, ethically and in accordance with proper
accounting rules, therefore making an effort to ensure that at least one member has financial literacy. - Some organizations seek to maintain a board that respects the culture of and reflects the community served by the organization.
LEGAL AND COMPLIANCE ISSUES
- There are no laws that directly states and defines how the board should look like. However, there are state laws that have provisions defining the minimum level of independent members on the board.
- In membership organizations, the articles of incorporation must define the roles of members when electing board members.