GovernanceGovernance refers to the processes and structures to direct and manage an organization’s operations and activities. It defines the division of power and establishes the mechanisms to achieve accountability among the stakeholders, the Board and management. The Board of a non-profit has a responsibility to protect the public interest regarding the work of the organization. Whether you are working on a simple “kitchen table” Board or a sophisticated high-profile organization, if you are a Board member, you need to ensure that the organization is serving its purpose. For instance, you need to follow your bylaws (incorporating documents) and ensure that the organization has enough money and is paying its bills. You are responsible for the leadership and strategic direction of the organization. You “serve” and are accountable to the membership of the organization. You will consider stakeholders such as clients, customers, funders, staff and governments. The Board is the long-term representation of the organization, even though the faces on the Board change from time to time. Some of your responsibilities can be delegated to your Executive Director (ED) or Chief Executive Officer (CEO). As a Board, your job is to hire the ED and to provide ongoing strategic leadership to the ED and organization. Roughly speaking, Board governance falls into five areas: Strategic Planning, Bylaws and Policies, Financial Management and Oversight, Risk Management and the CEO. Each organization has its unique situation, policies and processes.
Governance as LeadershipRecently, Boards have been expressing interest in Board-thinking styles to achieve top-notch Governance. Called “Governance as Leadership” and based on work by Chait, Ryan & Taylor, the theory looks at Board work under a framework of three components: Fiduciary, Strategic and Generative. By employing these, Boards can achieve results with a fresh, meaningful approach.
Article on Governance as Leadership
Board PoliciesWhether you are working with a start-up Board or a long standing Board, your organization will require polices to guide the Board, employees and volunteers in meeting expectations at your organization. CentrePoint offers an overview of the type of policies that a typical non-profit Board might like to consider. Article: Overview of Board Policies |
