NONPROFIT BOARD GOVERNANCE
Nonprofit Board Governance and Organizational Success
Board governance in nonprofit settings could be conceptualized in terms of the provision of strategic direction as well as leadership to a nonprofit entity. More specifically, Laughlin and Andringa (2007) are categorical that board governance in this case has got to do with the combination of systems, guidelines, and processes used to make decisions, hold decision makers accountable, and take action (74). From the onset, it would be prudent to note that the relevance of effective board governance cannot be overstated when it comes to organizational success in the nonprofit realm. This is more so the case when it comes to meeting the mission of the organization, sufficiently addressing the specific client needs, and sharing outcomes with funders.
Meeting the mission of the organization
According to Cornforth and Brown (2013), ensuring that a nonprofit entity pursues and meets its mission goals happens to be one of the boards most crucial objectives in as far as governance is concerned. As the authors further point out, the board could partake in a number of undertakings in this regard. These are inclusive of, but they are not limited to, engaging the relevant stakeholders (i.e. government agencies and regulatory/legislative bodies) on issues of relevance to the organizational mission and objectives. Further, as the authors observe, a board develops specific plans for pursuing the organizations goals (Cornforth and Brown, 2013, p. 177). However, the authors are in this case categorical that for the board to play this particular role in an effective manner, there is need for the formulation of procedures and systems for the appointment of competent board members, or training of those appointed to the board.
A review of available literature also indicates that nonprofit board members have a number of primary duties. Those that are instrumental in as far as organization success in meeting its mission is concerned are the duty of care and the duty of loyalty. To begin with, with regard to the duty of care, this has got to do with the member competence levels. From a broad perspective, members are expected to ensure that the organizations ability to meet its mission is enhanced via, amongst other things, the prudent utilization of resources it has at its disposal with examples in this case being inclusive of people and funds. According to Laughlin and Andringa (2007), from a more formal perspective, this particular duty has got to do with the boards exercise of care that could be deemed reasonable as organizational stewards. Thus, in effect, one of the actions that members of the board could engage in, in their exercise of the duty of care so as to enhance organizational success in meeting its mission, is be informed on various aspects of the initiatives and programs of the organization, champion prudent deployment of funds, and scrutinize the relevant reports and records to ensure that organizational agenda is being advanced at an acceptable or intended/agreed-upon pace.
Next, we have the duty of loyalty. According to Laughlin and Andringa (2007), this particular duty dictates that the board members ensure that all the undertakings of the organization are designed to advance its objectives and mission. In so doing, they ought to see to it that the decisions they make and the strategies they advance are in the organizations best interests. Allegiance to the organizations mission must, therefore, be undivided. A member ought not to actively pursue personal gain in the execution of his roles as a board member. For instance, for the good of the organization, a member would ordinarily be expected to set aside certain interests (be they...
…also of the opinion that whole board assessments could be instituted on a periodic basis, i.e. prior to the annual retreat. Further, according to the authors, such assessments could be undertaken by a hired external party or the board itself.Next, yet another best practice that could boost the efficacy of a nonprofit organization is having in place a succession plan. This is especially important given that there is need to ensure the continuity of the various best governance customs and norms. Indeed, in the words of Cornforth and Brown (2013), it is crucial for continuity of all your hard governance work to have a robust succession plan, ensuring that good practices (and good board members) persist (301). Some of the aspects of a succession plan are inclusive of, but they are not limited to, board member terms as well responsibilities, and mechanisms to allow for sufficient time to ensure a position is filled by the most qualified and experienced candidate. Cornforth and Brown (2013) are categorical that board position-filling ought to be more of a proactive undertaking, as opposed to a reactive undertaking.
Yet another best practice that ought to be taken into consideration is ensuring that the board composition is in line with the present realities of the organization and the environment in which it operates. This is especially important given that as Cornforth and Brown (2013) indicate, most organizations do not adapt their board member composition to reflect prevailing circumstances, i.e. with regard to changes in nonprofit policies and conventions or in relation to shifting governance models. In the words of Cornforth and Brown (2013), as organizations evolve, the most desirable traits of a board member evolve as well (55). In that regard, therefore, the relevance of ensuring that the board composition is in line with the present realities of…
References
Cornforth, C. & Brown, W.A. (2013). Nonprofit Governance: Innovative Perspectives and Approaches. Routledge.
Hopkins, B.R. & Gross, V.C. (2009). Nonprofit Governance: Law, Practices, and Trends. John Wiley & Sons.
Ingram, R.T. (2009). Ten Basic Responsibilities of Nonprofit Boards. BoardSource.
Laughlin, F.L. & Andringa, R.C. (2007). Good Governance for Nonprofits: Developing Principles and Policies for an Effective Board. AMACOM.
Pointer, D.D. & Orlikoff, J.E. (2015). The High-Performance Board: Principles of Nonprofit Organization Governance. John Wiley & Sons.
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