Governance

The responsibility for governing a nonprofit lies with its board – a decision making body that provides overall leadership and policy direction. The board ensures sound stewardship of nonprofit assets and resources. Board members are held to the high legal and ethical standards to ensure that their loyalties lie entirely with the nonprofit, that they are diligent in carrying out their duties, and that they act in good faith to advance the nonprofit’s mission.

Online Resources

IdeaEncore Governance Library – Board Development tools and templates
Alliance for Nonprofit Management – governance and management resources for nonprofits
Blue Avocado – articles of interest to nonprofits
Board Source – resources, including sample policies, workbooks
Board Life Matters – blogs and resources to inspire and engage the next generation in nonprofit board service
Compass Point – consulting, resources, training
NonProfit Times – e-zine and resource directory
Policy Governance – John Carver model
Stanford Graduate School of Business – Workshop video (see also additional links to the side)
Free Management Library – variety of information and articles presented on board governance

BEST PRACTICES

1. The board functions at a level of policy and strategy to establish direction consistent with the vision, values and mission of the nonprofit.

2. The organization complies with governing documents, including by-laws and articles of incorporation. The board reviews these documents regularly and updates them as needed.

3. The board ensures that the nonprofit follows its policies and strategies through evaluation of the chief executive, the board itself and the nonprofit as a whole. That evaluation includes ongoing review of financial programmatic performance and leads to changes in policy or strategy as needed to advance its mission.

4. In carrying out its duties, the board functions corporately, as a body. The whole board – and not individual members – establishes policy, determines strategies and gives direction to the nonprofit. The board through designated spokespersons speaks with a single voice on matters affective the nonprofit.

5. Board members diligently carry out their duties by:
a. regularly attending board and committee meetings,
b. reviewing, understanding and independently evaluating materials presented to the board, and
c. asking for the information needed to carry out their job.

6. The board has in place and enforces policies and processes to ensure the highest ethical standards.

7. Board members, staff and volunteers act in the best interest of the nonprofit. They do not further their own personal interests. Board members question wrongdoing.

8. Board members are recruited, oriented and trained through a deliberate process that ensures that members have the skills and knowledge to carry out their duties and a clear understanding of:
a. the nonprofit’s vision, values and mission.
b. board member’s roles, both collectively and individually, in carrying out that mission,
c. the board’s responsibilities and duties, and
d. best practices in governing and leading nonprofits.
9. The board includes a diversity of cultures, experiences, skills and perspectives that reflect the community that the nonprofit serves.

10. The board adopts and uses processes for decision making that encourage full and vigorous discussion from diverse viewpoints and problem solving.

11. The responsibilities and authority of the board and any staff are clearly outlined, consistent with the board’s legal duties and the vision, values and mission of the nonprofit.
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12. The loyalty of board members to the mission of the organization is greater than their loyalty to the chief executive.

13. The board hires the chief executive, sets and reviews compensation, and holds him or her accountable for the organization’s performance.

14. Board members serve as ambassadors, representing and advocating for the nonprofit, as well as hearing and seeing the needs for and effect of the nonprofit in the community it serves.

15. Board members make personal financial contributions, commensurate with their ability, and help raise funds for the nonprofit.