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Boards And Governance Presentation


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Boards And Governance Presentation

  1. 1. A Presentation on Boards and Governance Cindy Stubblefield Allen Mosteller ================== February 3, 2007
  2. 2. What is Governance?   "Governance is the strategic leadership of nonprofit organizations" (Ott, p. 9) The governance function of a nonprofit is responsible for providing overall strategic direction, guidance and control. Often the term "governance" refers to board matters. However, many people are coming to consider governance as a function carried out by the board and top management. Effective governance depends to a great extent on the working relationship between board and top management.
  3. 3. Programs - Nonprofits work from their overall mission, or purpose, to identify a few basic service goals that must be reached to accomplish their mission. Resources are organized into programs to reach each goal. Think of programs in terms of inputs, process, outputs and outcomes. Inputs are the various resources needed to run the program. Outputs are the units of service. Outcomes are the impacts on the clients receiving services. Central administration - Central administration is the staff and facilities that are common to running all programs. This usually includes at least the executive director and office personnel. Nonprofits usually strive to keep costs of central administration low in proportion to costs to run programs.
  4. 4. Major Areas of Board Responsibility by setting up a corporation or legal existence, and to represent the organization's point of view through interpretation of its products and services, and advocacy for them.
  5. 5. <ul><li>Provide continuity for the organization </li></ul><ul><li>Select and appoint a chief executive </li></ul><ul><li>Govern the organization by broad policies and objectives </li></ul><ul><li>Acquire sufficient resources for the organization's operation s </li></ul><ul><li>Account to the public for the products and services of the organization and expenditures </li></ul>
  6. 6. Major Responsibilities of Board of Directors <ul><li>Determine the Organization's Mission </li></ul><ul><li>and Purpose </li></ul><ul><li>2. Select the Executive </li></ul><ul><li>3. Support the Executive and Review His or Her Performance </li></ul><ul><li>4. Ensure Effective Organizational Planning </li></ul><ul><li>5. Ensure Adequate Resources </li></ul><ul><li>6. Manage Resources Effectively </li></ul><ul><li>7. Determine and Monitor the Organization's Programs and Services </li></ul><ul><li>8. Enhance the Organization's Public Image </li></ul><ul><li>9. Serve as a Court of Appeal </li></ul><ul><li>10. Assess Its Own Performance </li></ul>
  7. 7. Board Chair <ul><li>A board chair's role is central to coordinating the work of the board, executive director and committees. </li></ul><ul><li>The chair's role may have appointive power for committees, depending on what is specified about this role in the bylaws. </li></ul><ul><li>The power of the board chair is usually through persuasion and general leadership. </li></ul>
  8. 8. Committees <ul><li>Typically, the board chooses to carry out its operations using a variety of board committees. </li></ul>
  9. 9. Executive Director <ul><li>The board typically chooses to have this one person who is ultimately responsible for carrying out the wishes of the board. The executive director is directly accountable for the work of the staff and supports the work of the board committees. </li></ul><ul><li>The definition of &quot;chief executive officer&quot; (almost always) depends on whether a business is a corporation or not, that is, whether it (usually) has a board of directors or not. </li></ul><ul><li>In an organization that has a board of directors, the &quot;chief executive officer&quot; is (usually) the singular organizational position that is primarily responsible for carrying out the strategic plans and policies as established by the board of directors. In this case, the chief executive reports to the board of directors. </li></ul>
  10. 10. Staff <ul><li>Staff report to the executive director and may support the work of the committees . </li></ul>
  11. 11. Volunteers <ul><li>Volunteers are unpaid personnel who assist staff, serve on committees and generally work under the direction of the executive director.  </li></ul>
  12. 12. Executive Director as Board Member 1. Is a member of the Board. 2. Serves as the Chief Volunteer of the organization (nonprofit only). 3. Is a partner with the Chief Executive in achieving the organization's mission. 4. Provides leadership to the Board of Directors, who sets policy and to whom the Chief Executive is accountable. 5. Chairs meetings of the Board after developing the agenda with the Chief Executive. 6. Encourages Board's role in strategic planning. 7. Appoints the chairpersons of committees, in consultation with other Board members. 8. Serves ex officio as a member of committees and attends their meetings when invited. 9. Discusses issues confronting the organization with the Chief Executive. 10. Helps guide and mediate Board actions with respect to organizational priorities and governance concerns. 11. Reviews with the Chief Executive any issues of concern to the Board. 12. Monitors financial planning and financial reports. 13. Plays a leading role in fundraising activities (nonprofit only). 14. Formally evaluates the performance of the Chief Executive and informally evaluates the effectiveness of the Board members. 15. Evaluates annually the performance of the organization in achieving its mission. 16. Performs other responsibilities assigned by the Board.
  13. 13. Mission Statement <ul><li>Serves As a Boundary to Board Function and Activities </li></ul>
  14. 14. Conflicts of Interest
  15. 15. Planning for the Future? Three Aspects of Organizational Planning
  16. 16. Strategic Planning <ul><li>Determines where an organization is going over the next year or more, how it is going to get there and how it will know if it got there or not. </li></ul><ul><li>The focus of a strategic plan is usually on the entire organization. </li></ul><ul><li>A variety of perspectives, models and approaches are used in strategic planning. </li></ul>
  17. 17. Program Planning <ul><li>Wide variety of uses of the term &quot;program&quot; in organizations. </li></ul><ul><li>A program is a collection of organizational resources that is geared to accomplish a certain major goal or set of goals. </li></ul><ul><li>A program is an organization and a system. Nonprofits usually refer to programs as ongoing, major services to clients. </li></ul>
  18. 18. Business Planning <ul><li>Business Plans should be conducted when: </li></ul><ul><li>Starting a new venture (organization, product or service). </li></ul><ul><li>Expanding a current organization, product or service. </li></ul><ul><li>Buying a current organization, product or service. </li></ul><ul><li>Working to improve the management of a current organization, product or service. </li></ul>
  19. 19. The contents of a business plan typically aim to : 1. Describe the venture including its primary features, advantages and benefits. 2. What the organization wants to do with it. 3. Justification that the plans are credible. 4. Marketing plans, including research results about how the venture will be marketed. 5. Staffing plans, including what expertise will be needed to build and provide the venture on an ongoing basis. 6. Management plans, including how the expertise will be organized, coordinated and led. 7. Financial plans, including costs to build the venture, costs to operate the venture, expected revenue, budgets for each of the first several years into the future, and when the venture might break-even. 8. Appendices that include a wide variety of materials such as a description of the overall organization, its other products and/or services, or its current staff.
  20. 20. A nonprofit business plan is very similar to a well designed grant proposal. --------------------------------------------------------In addition to the items included in a standard business plan, a grant proposal might include itemization of any deficits (when expected expenses exceed expected revenues), which indicates the need for funding from the entity to which the grant proposal is being submitted. --------------------------------------------------------A break-even analysis usually is not included in a grant proposal.
  21. 21. Good Information Resources for Nonprofit Organization Management, Governance, and Procedures <ul><li>Internet Public Library : </li></ul><ul><li>Business Resources : </li></ul><ul><li>Nonprofit Organizations : </li></ul>
  22. 22. Free Management Library Website: Free Complete Toolkit for Boards Excellent information can be obtained by doing a &quot;Grok It&quot; search on Nonprofit Management on the IPL site that can be accessed at :