6. Governance Axioms
1. The operational leader and the board must work as equal
members of a team rather than one subordinate to the
other.
2. The work of the two does not divide neatly into policy-
making versus execution of policy; each need to be
involved with both functions and must coordinate their
work accordingly. often
3. In a well-functioning nonprofit organization, the
operational leader will take responsibility for assuring
that the governance function is properly organized and
maintained.
- Peter F. Drucker
(Paraphrased from Nonprofit Management & Leadership: Lessons for Successful Nonprofit Governance - 2006)
9. Legality
Corporate Directors are held accountable
under the law for the following:
โข Making sure the organization is
run in such a way that it returns
profit to its shareholders.
โข Ensuring the organization
complies with the law.
โข Safeguarding the financial
health and physical assets of
the organization.
10. Governance
โข The board is comprised of individuals.
โข However, a director โ or even a group of
directors โ can not set policy, give directions
to staff and volunteers, or make
commitments on behalf of the organization.
โข Only the full board, acting as a
unit, can do these things.
11. Fundraising
1. Make a Financial Contribution
2. Recruitment of New Members
3. Solicit Contributions
4. Oversee Fundraising Efforts
12. Board members and the board as a whole,
must exercise due diligence and the kind of
judgment that ordinary, prudent people
would in similar circumstances.
Duty of Care
Discuss ways to fulfillโฆ
13. Board members and the board as a whole,
must put the best interests of the
organization first.
Discuss ways to fulfillโฆ
Duty of Loyalty
14. Each board member and the board as a
whole, must comply with the organizationโs
policies and with all applicable local, state,
and federal laws and regulations.
Duty of Obedience
Discuss ways to fulfillโฆ
15. Creating Progress
โDonโt Push Growth, Remove the
Factors Limiting Growthโ
Peter Senge, The Fifth Discipline -
The Art & Practice of the Learning Organization
16. Board Development
"What are the three most
important things for the board
to accomplish this year, and
what kind of board members
do we need in order to do so?"
17. Executive Transition
1. Develop Strong Board with a Public Role
2. Conduct Organizational Assessment
โข Define Organizational Vision
โข Evaluate Financial Stability
โข Assess Business Model
โข Understand Organizational Challenges
โข Identify Executive Skills
3. Develop Transitional Plan
4. Communicate with Stakeholders
19. Systemic Planning Process
Who
Are We?
Where Are
We?
How Did
We Get
Here?
Where Do
We Go
Next?
How Do
We Get
There?
Adapted from โThe Nonprofit Strategy Revolutionโ
Step One
Step Two
Step Three
22. Lifecycle Analysis
Stage Key Question
Grass Roots - Invention Is the Dream Feasible?
Startup - Incubation How Do we get started?
Adolescent - Growing How can we build this to be viable?
Mature โ Sustainability How can we ensure sustainability?
Stagnation & Renewal How, if any can we renew?
Decline & Shutdown Should we close?
23. Lifecycle Analysis
with respect to functionalityโฆ
โข Administration & Systems
โข Staffing
โข Governance
โข Finances
โข Marketing
โข Programming