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Governance Lessons Of The Second Mile


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Discussion of best practice nonprofit governance using The Second Mile, founded by Jerry Sandusky, as an example of several pitfalls in leadership, management, and governance

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Governance Lessons Of The Second Mile

  1. 1. Governance Lessons of The Second Mile
  2. 2. The Second Mile• Founded in 1977 in State College, PA• Mission to serve underprivileged youth and their families• 2009 budget – about $3 million• Served up to 100,000 children & families annually statewide• Operations suspended in late 2011 For more:
  3. 3. Praise for The Second Mile• U.S. President George H. W. Bush praised the group as a "shining example" of charity work in a 1990 letter, one of that presidents much-promoted "Thousand points of light―
  4. 4. Praise for The Second Mile• Citing Sanduskys work with The Second Mile charity to provide care for foster children, then U.S. Senator Rick Santorum honored Sandusky with a Angels in Adoption award in 2002.
  5. 5. Praise for The Second Mile• Ex-Eagles head coach Dick Vermeil, current Eagles head coach Andy Reid, R.R.M. Carpenter, III, former Eagles owner, actor Mark Wahlberg, golfer Arnold Palmer, and football players Ham and Franco Harris, among others, served on the Honorary Board of Second Mile. NOTE: it’s unclear whether all honorary board members consented to have their names used by The Second Mile
  6. 6. History of The Second Mile
  7. 7. And then, suddenly…
  8. 8. Expert questions makeup of Penn State case charity
  9. 9. Public Records - Sources• IRS Form 990 Filings• PA State Charitable Organization Registration Statement• Second Mile web site• Other public web sites
  10. 10. Issues • Founder’s Syndrome • Founder as Titled Corporate Officer • Board Conflicts of Interest—General • Conflict of Interest—CEO and Spouse Both Employed by Nonprofit • CEO with Multiple Professional Relationships • Board Members Sharing Employment Relationship • Lack of Board Term Limits • Complex Governance Structure • Board(s) Too Large • Donors and Celebrities as "Leaders" • Access to Legal CounselSource: The Second Mile - Lessons in Nonprofit Governance, Sumption & Wyland
  11. 11. To quote an old, old joke…Patient: ―Doctor, it hurts when I do this!‖Doctor: ―Well, stop doing that!‖
  12. 12. Leadership Lessons• Founder• Board of Directors• CEO and leadership staff• Donors & supporters• Legal & organizational
  13. 13. Founder’s Syndrome Strengths Weaknesses• Visionary • Individualistic• Energetic • Single-minded• Magnetic • Rigid• Focused • Loved• Determined • Feared • Professional development?
  14. 14. Board of Directors• Members recruited and acting for organization’s mission• Sensitive to conflicts of interest• Eager to clarify roles – both own and others’• Governance committee (governance function)• Proper policies & procedures in place and working
  15. 15. CEO and Leadership Staff• Attuned to conflicts of interest• Policies and procedures in place and working – Moonlighting/consultation work – Volunteer management
  16. 16. Donors & Supporters• Define roles & relationships• Always secure permission – preferably written permission – to cite celebrities• Limit appearance of governance responsibility for non-board members
  17. 17. Legal & Governance• By-laws – Simple to understand – Limited to essentials• Governance committee• Well-defined governance structure• Easy-to-find, easy-to-read documents – By-laws – Annual reports – Form 990
  18. 18. The best time to get ready for adversity
  19. 19. Thank You! 818 S. Hawthorne Avenue Sioux Falls, South Dakota 57104-4537 (605) 336-0244 or (888) 4-SUMPTION www.sumptionandwyland.com