Respond to the below post using correct APA format and at least 2 peer reviewed references. Responsibilities of the board of directors Board members are charged with the public’s trust in guiding nonprofit organizations in an effective and efficient manner including financial oversight, organizational strategy, and assisting in the development of resources. The effectiveness of an organization’s board is likely to have a direct influence on the organization’s overall performance (Worth, 2014). There are at least seven best practices for the boards of directors including policy information, strategic planning, program monitoring, financial planning, resource procurement, board development, and dispute resolution (Miller-Millesen, 2003). The more involved the board is in developing the organization’s mission and in strategic planning (participating in meetings and committees), the better the influence the board can have on organizational performance ( Nienhüser, 2008) . Theories affecting board behavior There is much insight in regards to what a board of directors should do; what is actually put in to practice can be much more complex. Nonprofit boards of directors are likely to engage in behaviors that embrace the assumptions of three different theoretical perspectives: agency theory, resource dependence theory, and institutional theory. The agency theory stresses separating ownership from control. Under agency theory the board focuses on strategic contribution above all else. Mission development, strategic planning, program evaluation, executive recruitment, and resource allocation are all key elements directed by the board of the directors (Hodge, & Piccolo, 2011). Decisions are made by the board and are to be executed and implemented by the management of the organization. Managers, under agency theory, are expected to act in ways that further the interests of the owners or shareholders (Hodge, & Piccolo, 2011). By keeping the implementation of decisions independent from the management a clear hierarchal structure is constructed that bests aligns with the interests of the shareholders. Furthermore, while it is important for the board to rely on the chief executive for expertise, the board has a responsibility to guard against managerial opportunism and an obligation to ensure that the organization has a positive presence in the community (Miller-Millesen, 2003). Resource dependency theory is responsive to resource-based pressure. The board performs fundamental functions in resource dependence theory that are based around gathering information for the betterment of the organization ( Nienhüser, 2008). The board focuses on developing relationships with outside sources to reduce uncertainty. The board uses the information to remain adaptable for competitive purposes. Also, the board maintains control of the organization’s public image. Institutional theory influences boards to embrace the norms, values, beliefs, and expectations of similar org.

1. Respond to the below post using correct APA format and at
least 2 peer reviewed references.
Responsibilities of the board of directors
Board members are charged with the public’s trust in guiding
nonprofit organizations in an effective and efficient manner
including financial oversight, organizational strategy, and
assisting in the development of resources. The effectiveness of
an organization’s board is likely to have a direct influence on
the organization’s overall performance (Worth, 2014). There are
at least seven best practices for the boards of directors
including policy information, strategic planning, program
monitoring, financial planning, resource procurement, board
development, and dispute resolution (Miller-Millesen, 2003).
The more involved the board is in developing the organization’s
mission and in strategic planning (participating in meetings and
committees), the better the influence the board can have on
organizational performance (
Nienhüser, 2008)
.
Theories affecting board behavior
There is much insight in regards to what a board of directors
should do; what is actually put in to practice can be much more
complex. Nonprofit boards of directors are likely to engage in
behaviors that embrace the assumptions of three different
theoretical perspectives: agency theory, resource dependence
theory, and institutional theory.
The agency theory stresses separating ownership from control.
Under agency theory the board focuses on strategic contribution
above all else. Mission development, strategic planning,
program evaluation, executive recruitment, and resource
allocation are all key elements directed by the board of the
directors (Hodge, & Piccolo, 2011). Decisions are made by the
board and are to be executed and implemented by the
management of the organization. Managers, under agency
theory, are expected to act in ways that further the interests of

2. the owners or shareholders (Hodge, & Piccolo, 2011). By
keeping the implementation of decisions independent from the
management a clear hierarchal structure is constructed that
bests aligns with the interests of the shareholders. Furthermore,
while it is important for the board to rely on the chief executive
for expertise, the board has a responsibility to guard against
managerial opportunism and an obligation to ensure that the
organization has a positive presence in the community (Miller-
Millesen, 2003).
Resource dependency theory is responsive to resource-based
pressure. The board performs fundamental functions in resource
dependence theory that are based around gathering information
for the betterment of the organization (
Nienhüser, 2008).
The board focuses on developing relationships with outside
sources to reduce uncertainty. The board uses the information to
remain adaptable for competitive purposes. Also, the board
maintains control of the organization’s public image.
Institutional theory influences boards to embrace the norms,
values, beliefs, and expectations of similar organizations
because it is deemed acceptable practice to do so. For example,
the board may create subcommittees because it is considered the
appropriate thing to do not necessarily because the
subcommittee is believed to be overwhelmingly productive
towards achieving the mission (Miller-Millesen, 2003). If
funders believe that an advisory committee is needed, than the
organization will draft an advisory committee. In addition, some
organizations will mimic others that they perceive to be more
legitimate (Worth, 2014). Perhaps, if an organization is seeking
to become more professionalized it would adopt the
recruiting/hiring/training process of an organization considered
to be more successful.
Biblical perspective
One of the main components of the agency theory is the
hierarchal structure which protects the organization from

3. opportunism and internal conflict. Well, the church has a
similar structure in which Christ is Chairman of the Board;
“And he put all things under his feet and gave him as head over
all things of the church,” Ephesians 1:22. Then the pastor is the
top executive who takes cues from Christ, but is charged with
managing and delegating the message.
References
Hodge, M. M., & Piccolo, R. F. (2011). Nonprofit board
effectiveness, private philanthropy, and
financial vulnerability.
Public Administration Quarterly,
35
(4), 520+. Retrieved from
http://www.questia.com/read/1G1-303894965/nonprofit-board-
effectiveness-private-philanthropy#/
Miller-Millesen, J. (2003). Understanding the behavior of
nonprofit boards of directors: A
theory-based approach.
Nonprofit and Voluntary Sector Quarterly.
34(4), 521-547.
Retrieved from: DOI:10.1177/0899764003257463
Nienhüser, W. (2008). Resource dependence theory - How well
does it explain behavior of
organizations?**.
Management Revue,
19
(1/2), 9+. Retrieved from
http://www.questia.com/read/1P3-1508330091/resource-
dependence-theory-how-well-does-it-explain#/

4. Worth, M. (2014). Nonprofit management: Principles and
practice, Third Edition. Sage,
Washington D.C.