Nonprofit Board Governance

For my last blog on nonprofit board governance for the time being, I want to close out by talking about board governance in general terms. I have talked about the formation of the organization and the creation of bylaws. I have also discussed the importance of diversity, proper team building and committee structures. These are the things that will help attribute to board success. However, it does not matter if your board is high functioning or under-performing, there are certain things that must continue to be reviewed. 

The first thing that must be reviewed  on a regular basis are the laws that pertain to board governance. The area of board governance is often changing, the requirements for compliance are becoming more and more like the reporting requirements of for-profit organizations. If you want to remain legitimate as a nonprofit organization, you must adhere to all required compliance. The most recent wave of nonprofits losing their tax-exempt status for not being in compliance with IRS reporting standards shows us this. It was the fault of each organizations board that they no longer have this status. Do not allow this to happen to your organization because of oversight. 

The second thing that nonprofit boards must do is provide board members with ongoing training. Assuming someone knows their role can lead to negative impacts on an organization. Board members often assume that their colleagues understand their role as a board member because they have had success in their career. Often times the board member will also think that they in fact, do know their role, yet this is not always the case. 

Training will allow individuals to discover where they lack the necessary skills for nonprofit board governance. The volunteers that serve on boards typically come from a field in the business sector, they often feel that they have more knowledge because of their success in their field of work. The chief executive should work with the board chair to ensure that proper training is delivered to ensure this type of thought process will not happen.

The third and final thing that I believe nonprofits should be aware of, especially  when they have been in existence for a long time, is the review of their mission and vision to determine if they are still relevant. With the passage of time, comes a change in the environment around you. The review of your mission and vision will allow you to determine if the mission needs to change, and if it is accomplishing what it says it will accomplish. Reviewing your mission will also allow you to review your program offerings to ensure that you have not allowed mission drift to occur. 

Nonprofit governance does not have some type of one-size fits all mode. The organizations themselves are so diverse, which leads to even more diversity in how boards are governed as well as the their makeup. It is up to the members of your current board to determine what type of governance model you will use or how diverse you want your board to be. However all nonprofit boards have essential roles, and the three things that I have discussed in this blog are items that need to be addressed by every board.