What an organization does for its members, constituents, or clients helps determine its significance.
Accordingly, it’s important that a nonprofit board monitor the organization’s programs and services for impact.
Effectiveness could be determined by number of clients served, or number of attendees at an event.
The board must ensure that programs and services align with the organization’s mission, and should study the cost-benefit ratio of major undertakings.
Every board member should know which activities are essential, which are weak, which produce revenue, and which are critical to serving the organization’s constituents.