The document discusses the challenges faced by nonprofit boards and proposes solutions. It analyzes research conducted on 31 nonprofit organizations in Spain, including interviews with board members. The key challenges identified are: lack of organizational commitment by boards; unclear functional strategies; weak relationships with management; lack of diversity among board members; failure to renew boards; poor information management; and weak cultures of transparency, accountability, and evaluation. The document proposes solutions in each area, such as clarifying board roles and responsibilities, diversifying board membership, establishing term limits, and developing evaluation tools and transparency practices.

1. The Challenges of the Nonprofit
Boards
www.tercersector.org.es
Pau Vidal
9th July 2010
ISTR – 9th International Conference

2. 2
Index of contents
1. About the research
Origin
Aim and Methodology
Universe and sample
2. The challenges of the nonprofit boards in NPOs
The organizational commitment.
The functional strategy.
The relationship with the directive team.
The diversity of the profiles.
The renewal of the board.
The management of information.
The culture of transparency and accountability.
The culture of evaluation.

3. 3
Observatorio del Tercer Sector
Observatorio del Tercer Sector is an independent and
nonprofit research center specialized in the third sector.
Its aim is to deepen and increase the knowledge on the
sector and to work for the improvement of the nonprofit
organizations’ management.
Web: http://www.observatoritercersector.org
E-mail: observatori@observatoriotercersector.org

4. 4
Observatorio del Tercer Sector (II)
The Values of the organization
Social Transformation. We work for the strengthen of the sector, as we believe it is
an active agent for social change.
Engagement. We work together with the third sector, within the sector, with the
participation and conformity of its organizations.
Independence. Independent in order to guarantee quality and opinion.
Quality. We work hard to achieve the maximum professional competence, offering
useful results with quality.
Learning. We are an organization that learns from its own experience.
Trust. We assume a commitment with collaboration and knowledge sharing.
Transparency. We are open with regard to information and communication about the
organization.

5. 1. About the research
5
Origin
Research
Aim and
Methodology
Universe and
sample

6. 6
Origin of the research
The proper operation of the boards is a key aspect for
the development of the NPOs’ missions and values, the
proper functioning and the accountability
Still, in many organizations, the management of the
board has not been prioritized due to the pressure of
the management of activities
It is not sufficient only to show that things are
progressing accurately and at a high quality level, but
rather it is necessary that the activities are carried out
in accordance with the values and mission of the entity

7. 7
Aim and Methodology
The main objective of the investigation is to understand the
situation of the boards and promote solutions to improve their
operation.
Analysis of
the universe
with the purpose of identifying the different typologies of NPOs
and the key informants to interview, the research used
secondary data sources and direct information from entities
Research of
international
referents
an international search was performed of current publications
related to experiences of the operation of the boards in different
countries
Interviews
18 key informants who are part of a total of 31 NPOs were
interviewed. The interviewees are people who participate in the
board of NPOs with different roles. Some of the interviewees are
directors and leaders in different institutions simultaneously
Analysis and
elaboration of
improvement
proposals
from the interviews and a group of people related to the world
of the non-profit organizations, solutions for improving the
management of the boards have been created

8. 8
Universe and Sample
Characteristics
of the NPOs of
the analysis
Excluded NPOsTypology of NPOs
-Passive patrimonial
organizations
(donors)
-Active patrimonial
organizations
(mixed)
-Operative
-NPOs that have their
origin as an association
-Entrepreneurial NPOs
-NPOs that are welfare
projects by savings
banks
-Diversity in the
dimension of NPOs
-Origin of the funds
-Composition of the
boards
-Territorial area
-Sectorial area
-Religious
-Patrimonial familial
-Singular entities
-Instrumental juridical
formula
-State NPOs

9. 2. The challenges of the boards in NPOs
9
Reflection
Challenges
Identification of
Interviews
1. The organizational commitment.
2. The functional strategy.
3. The relationship with the directive
team.
4. The diversity of the profiles.
5. The renewal of the board.
6. The management of information.
7. The culture of transparency and
accountability.
8. The culture of evaluation.
Promotion of
Proposals of
improvement

10. 10
The organizational commitment
-Clarify and specify the responsibilities of the boards, such as governance
-Distinguish the roles of the governance board and the advising board
-Make decisions based on a broad organizational knowledge
-Extend the linking of the boards beyond the attendance to one or two
meetings a year
-Find spaces for the members of the boards for knowing the task of the entity
and the social base as well as to participate within the organization
Proposals
-Creating a document clarifying the expectations and responsibilities of the
role of the members of the board.
-Making personalised meetings to clarify the expectations of each member.
-Identifying the agenda of the organisation so to know when it is necessary to
invite the board.
-Facilitating the knowledge amongst the board, the remunerated staff, the
voluntary workers and the beneficiary persons.
-Creating the figure of a person in the board dedicated to the other members
and to manage the dynamic within them.
-Creating commissions for subjects: economic, strategic, financial...

11. 11
The functional strategy
-Differentiate between the functional strategy and the functional operation
-Define the issues in which the board has to intervene
-Make sure the board is in the most strategic subjects of the entity to draw up
the general policies
-Develop mechanisms to evaluate and monitor most of the operating tasks
-Focus on both the everyday life and the future of the organization through
processes of reflection and strategic planning
Proposals
-Making the strategic planning of the entity and its periodic revision.
-Establishing strategic indicators.
-Clarifying which subjects ought to be discussed amongst the board and which
ones are competence of the directive team.

12. 12
The relationship with the directive team
-Establish good relationships between the board and the directive team
-Constitute relationships between the board and the directive team based on
trust
-Exert a certain degree of taxation of the work of the directive team
-Clarify who exerts the leadership of the organization to head together to the
entity’s goals
-Institute a strong linkage between the president and the director
-Understand the expectations that rely on the president and the director
-Use tools of transparency and efficiency toguarantee the continuity of the
bond of trust between the two
Proposals
-Establishing an open, fluent and transparent relationship.
-Making possible the participation in the board of members of the directive
team depending on the subjects.
-Making evaluations of the directive team, the board alone.
-Making joint evaluations of the board and the relationship with the directive
team.

13. 13
The diversity of profiles
-Increase the diversity of profiles within the boards
-Increase the presence of women, immigrants, youngsters, etc. within the
boards
-Facilitate the representation of the diversity of the social base, specially the
beneficiary people
-Enrich the visions of the board and the governance by diversifying the
profiles
-Be aware of the moment of the organization and the type of profiles that the
situation requires
-Understand and reflect the plurality of society
Proposals
-Thinking of the beneficiary collectives of the organisation to incorporate
related persons.
-Making a conscious effort to balance the issue of gender.
-Thinking to incorporate different profiles regarding age, vital trajectories,
origin... that can be complementary of the current composition of the board.
-Analysing the knowledge and skills of the current members to see which
profiles are needed to incorporate.

14. 14
The renewal of the board
-Establish mechanisms to guarantee non-traumatic relays
-Understand the necessity of generational renewals
-Create criteria of renewal besides the low degree of attendance to the
meetings
-Avoid perpetuation in the boards, specially in leadership positions, where it
becomes more difficult to find relay
Proposals
-Creating a commission of the board to think strategies and to attract new
members.
-Establishing closed periods of participation in the board.
-Thinking which profiles are needed for a renewal of the board.

15. 15
The management of information
-Achieve the equilibrium between briefing and quality
-Avoid confusion with far too much information
-Select the information that ought to be generated and distributed within
specific members of the board
-Use of new technologies for information and communication
-Understand that the right information is crucial to make right decisions
Proposals
-Making more than 2 meetings per year.
-Creating commissions for concrete subjects.
-Sharing information before to the meetings.
-Using the new technologies.
-Thinking specific products of communication for the board.

16. 16
The culture of transparency & accountability
-Generate public trust through explaining the activities realized
-Be transparent in front of society
-Render accounts in front of society
-Make an organizational value out of the culture of transparency
-Understand the added value that constitute transparency and accountability
-Include the culture of transparency and accountability in all the processes
Proposals
-Identifying the different collectives involved in the organization for rendering
accounts.
-Involving the board and the team in everything regarding the matter of
transparency.
-Describing the different channels in order to create public awareness of the
organization and how to improve the information and its transparency.

17. 17
The culture of evaluation
-Include the culture of evaluation within all the processes, specially within
those related to the operation of the boards
-Develop tools to evaluate the boards
-Take into account the evaluation of all of the social base involved in the
functioning of the entity, including technical teams, members of the directive
team, etc.
-Introduce the idea of self-evaluation within the boards
Proposals
-Making meetings of evaluation of the board on a periodical basis.
-Establishing functional indicators of the board.
-Picking up the vision of the ones involved on the organization in relation with
the board.

18. www.tercersector.org.es
Pau Vidal
9th July 2010
ISTR – 9th International Conference
The Challenges of the Nonprofit
Boards