From the Board of Directors Orientation Toolkit, many decisions and actions by REALTOR® associations have significant legal and regulatory implications. Therefore, new directors must understand the importance of risk management, and how their actions could unwittingly cause harm to the association.

For real estate associations, budgeting goes hand in hand with strategic planning, just as it does for all types of businesses. Virtually every type of goal established during a strategic planning session will affect the association’s finances, making it essential to establish a realistic budget.

This section of the Board of Directors Orientation Toolkit covers the legal obligation the association has to operate under its governing documents. This section is placed first in the toolkit, because new directors must know their duties and responsibilities to the association under local, state and federal laws, as well as the requirements set by the National Association of REALTORS^®.

Part of the Board of Directors Orientation Toolkit: With the passage of the National Association of REALTORS® Organizational Alignment Core Standards, all associations are required to develop an annual strategic or business plan that meets or exceeds these standards.

The Board Orientation Toolkit shares the key elements of an orientation for new members of your association’s board of directors. With this toolkit, you can customize an orientation program that’s right for your board of directors and your association’s governance model.