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The Leadership Role of Nonprofit Boards
Presented to
Association of Fundraising Professionals
Joan A. Hensleit-Minasian, MA
March 29, 2010
Nonprofits in the United States Over 1.5 million U.S. nonprofits.
Play a vital role in society.
Make up 10% of the US gross domestic product (GDP).
As the number of nonprofits have grown, so
too have the incidents of scandal and/or
organizational collapse.
Fact
Fresno Met Museum Fails
The Fresno Bee
“From its birth, observers say, the museum
was hampered by an ill-focused mission,
uneven leadership and the lack of a steady
revenue source.” Russell Clemings & George Hostetter
March 6, 2010
Purpose of the Study
To ascertain the experiences and attitudes
of leaders in the nonprofit community
regarding the role of nonprofit boards.
What Is Good Governance?
The Internal Revenue Service suggests that
“under the rubric of ‘good governance’, is the
development by each organization of a system
of internal controls that is appropriate to the
organization itself.”Sarah Ingram, 2009
Good Governance is Reflected by… A clear understanding and public expression
of an organization’s mission.
A board with real rules and responsibilities. One that is engaged, informed, independent, and transparent.
Reasons For Ineffective Board Governance A controlling chief executive. A board that doesn’t understand the real
work of the institution. Personal board members who lack
accountability. An inability of the board to work as a team.
History
“Tradition has produced boards that spend
more time looking over their shoulder than
over the horizon.”John Carver, 2006
The Reality
With a plethora of information, training
materials and consultants available, nonprofit
organizations are continually looking outward
for solutions—for someone to show them
how to fix the problem.
Question
What is the role of the board in nonprofit
organizations?
Objectives1. To identify current best and effective board
practices.
2. To identify the specific governance issues that prohibit a board from achieving its leadership role.
3. To identify a systematic approach to transition to a new work model of governance.
Qualities of BoardsEffective Boards Ineffective Boards
Clear roles (6) Members not engaged (6)
Orientation and ongoing training (6) Do not understand roles or responsibilities (6)
Diverse (6) Lack of orientation or trainings (4)
Uses effective committee structure (5) Lack of diversity (4)
Good board and CEO relationship (5) Poor board and CEO relationship (3)
Financially supports the organization (5) Bad board meetings (2)
Assurance of fiscal health (4) No financial support of organization (2)
Focus on mission and vision (3) Lack of confidence in roles (2)
Annual review of strategic plan (3) No consistent structure (2)
Strategic (3) Staff dependent (2)
Key Themes that Emerged
1. Roles and responsibilities of the board and staff.
2. Orientation, education and training.
3. Diversity.
1. Roles and Responsibilities for the Board and Staff Good governance provides the systems
and support for both the board and the staff to know and embrace clearly defined and delineated roles and responsibilities.
A positive relationship between the board chair and the CEO.
Participant Comments… “The relationship between the CEO and the
board is pivotal in the board achieving its potential leadership role.” (Participant 8)
“Everybody has a role, knows their role, and does their role.” (Participant 2)
2. Orientation, Training & Education Good governance provides the systems
and support for orientation and ongoing board and staff training and education (resulting in confidence in serving in their roles).
Participant Comments “An effective board practice is the
thoughtful recruitment, orientation, and engagement of people in the work that they are confident about.” (Participant 8)
“An effective board is one that pays attention to all the functions of a board including its own development towards excellence.” (Participant 7)
3. Diversity: A Broader View Good governance embraces diversity
(ideological), not just for the sake of diversity, but rather as a means to see through different lenses resulting in approaches to accomplishing a mission that normally be missed.
Participant Comments “When I talk about diversity, it’s not just
cultural diversity. Ultimately, too, it’s ideological and perspective diversity; because even if you get everyone who is different on the outside, but they all think the same – that’s terrible.” (Participant 3)
Observations Boards can readily identify what they are
doing well. Organizations know what the results of
good governance looks like; They just do not know how to get there.
Looking Forward
“To achieve significant, visionary community
and global improvement, it will require
different approaches to governance, planning,
program development, and program
sustainability”.Hildy Gottlieb, 2009
We have the flexibility to develop a system of
internal controls that is appropriate to our
organizations themselves under the rubric of
good governance – that’s where we need to
put our energy!
Recommendations 21st century thinking. Fluid governance models. Mentorship and coaching.
The Leadership Role of Nonprofit Boards
Joan A. Hensleit-Minasian, MA
559-259-6722