Varied Positions and Courses of Action
To start, there are varied positions on the main functions a board is meant to perform. A more outdated concept classifies boards as merely an oversight entity. However, as policy and law-makers and regulators demand higher board involvement and accountability, boards are pushed into performing more active roles, including, “policy setting and review, employee supervision, and overall management of the organization” (Hopkins et al., 2015, p. 58). To meet these rising expectations in governance, nonprofit boards are forced to change and implement new processes that promote good governance practices.
The composition of a nonprofit’s board of directors or board of trustees provides the opportunity
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Such policies include: “conflicts-of-interest policy, whistleblower policy, document retention and destruction policy, code of ethics, investment policy, travel and reimbursement policy, and fundraising policy” (Hopkins et al., 2015, p. 60). Although these policies are typically not legally required, in the event of an audit or investigation, they illustrate an effective and prepared governance infrastructure.
Recommendations for the Future
Internal Governance Standards. Going beyond what is legally required of a nonprofit’s governing board, nonprofits should set their own governance policies in order to identify standards that will help them be the best version of themself. Nonprofits can include corporate policies such as the conflicts-of-interest policy. As previously stated, such corporate policies are not required by law, but they do aid in maintaining the “duty of loyalty.” Additionally, boards can use their own internal governing standards to set mechanisms in place to prevent any of the legal requirements of the nonprofit sector from going overlooked. For example, boards can schedule routine times in which they review their joint ventures and subsidiaries, as well as the requirements of their tax-exempt status to ensure that these demands are met; thus, simultaneously maintaining a board’s “duty of obedience.”
Careful Board Selection. Good governance starts with a good governing board. Because few legal requirements exist surrounding
The existing literature on nonprofit governance suggests board roles are widespread and varied (Brown & Guo, 2010). For example, in BoardSource (2004b) as cited by Zimmermann
The elements of a board as a defining factor in the self-governance character of a nonprofit is affirmed by Worth (2014). For example, the “control of the nonprofit lies with a board of directors…who have overall responsibility to [care for and oversee] the organization” (Worth, 2014, p. 57). Big Brothers Big Sisters exemplifies volunteerism in both its history and present service practices. For example, the organization currently utilizes “400,000 volunteer mentors and families” (Big Brothers Big Sisters of America, 2016a, para. 3) to work with youth and facilitate the organizations critical programs and relationships (Big Brothers Big Sisters of America, 2016a). Big Brothers Big Sisters history is also reflective of volunteerism is critical role. To illustrate, in 1904 Ernest Coulter founded the Big Brothers movement with 39 volunteers, who each agree to befriend and mentor an individual youth (Big Brothers Big Sisters of America, 2016a). The statistical data from Big Brothers Big Sisters reveals that the organization have a tremendous impact on community individuals and therefore provides a public benefit through
ReferencesRobert D. H. & Associates (2005). THE JOSSEY-BASS HANDBOOK OF NONPROFIT LEADERSHIP & MANAGEMENT (2nd ed.). San Francisco, CA: John Wiley & Sons, Inc.
The diversity of nonprofit organizations, services provided and the problems faced shows that nonprofits require leadership with an in-depth understanding of the multifaceted nonprofit landscape. Understanding the culture of nonprofit work is also crucial and much easier to understand once you have been through a nonprofit management program. My career interests lead me towards an avocation of a deeper knowledge of strategic management/planning, legal structure and standards, increase my skills in quantitative analysis of policy, financial governance and developing fundraising strategies. These areas allow for macro management within the nonprofit
Corporate governance is a set of actions used to handle the relationship between stakeholders by determining and controlling the strategic direction and performance of the organization. Corporate governance major concern is making sure that the strategic decisions are effective and that it paves the way towards strategic competitiveness. (Hitt, Ireland, Hoskisson, 2017, p. 310). In today’s corporation, the primary objective of corporate governance is to align top-level manager’s and stakeholders interest. That is why corporate governance is involved when there is a conflict of interest between with the owners, managers, and members of the board of directors (Hitt, Ireland, Hoskisson, 2017, p. 310-311).
“The governing board of a non-profit organization holds ultimate responsibility for ensuring that the organization serves its mission and for the overall welfare of the organization itself.” (Worth, 2017) This week’s reading was about how boards of non-profit organizations or better known as “governing boards”, operate and the types of responsibilities they have. Before taking this class, I thought that boards held the same responsibilities and held the same amount of power. Elected boards, self-perpetuating boards, appointed and hybrid, and advisory boards were discussed in this chapter. I was able to learn about the advantages and disadvantages of each board. For example, an advantage of a self-perpetuating board would be the board is able
Most nonprofit agencies follow the same management structure. The structure normally consists of a vertical hierarchal structure with the chief executive manager at the helm, and divisional leaders rounding out the strategic leadership team. Since 9/11, then government shutdowns, multiple wars, natural disasters, and the government sequester, the challenge to most nonprofits is to compete for every available charitable dollar. Chief Executive Officers (CEO) of nonprofits must not only be skillful in maximizing the outcomes with fewer dollars, but also politically savvy in vying for monies for federal, state, local, foundation, and private funding sources.
Nonprofits are made up of key team players that contribute to all of the work that goes into making the organization a success. Without members who don’t align with the core values, mission, and ethical practices of a nonprofit it cannot produce the outcomes it desires. A governing board is the group of people entrusted with and accountable for the leadership and governance of a nonprofit corporation (Renz, p. 127). This board holds the accountability and trust for the community and clients it serves. The importance of these members and their actions for the organizations they work for contribute to the success and good work it produces for the community they serve. Stated on p. 136 by David O. Renz “Nonprofits exist to meet community needs, and it is important for the board to be well connected to both sets of clients so it can make legitimate and useful judgments about whether the organization’s programs and activities are valued by those they are designed to serve,” exemplifies how nonprofits practice ethics through their
Nonprofit organizations are committed to accomplishing charitable objectives. They make available necessary assistance to persons who require direct support or are considered in danger, in a weakened position or otherwise considered underprivileged. The boards of nonprofit organizations exist to safeguard that management stays focused on the charitable mission and manages resources efficiently. Therefore, when considering potential appointees for board service, the organization must deliberate upon individual credentials, the culture of the group and inclusive composition of the board.
Nonprofit entity may assume a critical part in income broadening from an administration point of
This research guide of American Nonprofit Law addresses several issues, and includes references to materials covering: 1) the history, philosophy, and development of nonprofit law; 2) the role and function of non-profit law in the United States; 3) the governance of the non-Profit Organizations (NPOs); 6) taxation and tax-exempt status for Non-Profit Organizations; 7) the rights, duties, and powers
One of the things that I have seen happen repeatedly is that some Executive Directors truly “fall in love” with their agency and fail to adjust to the needs of the stakeholders. One of the things that nonprofits need to do is to learn from the
Introduction…………………………………………………………………….Page 3 Why is a Code of Ethics Important?..................................................................Page 4 Important Ingredients in the Code of Ethics………………………………….Page 4 Administration of the Code of Ethics………………………………………….Page 6 Cases of Nonprofit Ethics Issues………………………………………………..Page 6 Minimizing Unethical Behavior…………………………………………………Page 7 Conclusion………………………………………………………………………...Page 9 References…………………………………………………………………………Page 11 & 12
Nonprofits are still mainly volunteer based but they are now more organized and articulate than ever. Most nonprofits are comprised of a group of people to oversee the volunteers and they are commonly known as the Board of Directors. Sometimes referred to as the board of trustees or the governing board, these people are entrusted with the major decisions of the organization and are responsible for providing leadership and directions for the nonprofit (Arshad). The Board of Directors are usually members of the community that have been elected to act as management and they make major decisions for the organization. These members are the governing body of the nonprofit and they are responsible for overseeing the organization’s activities (Grobman).
The non-profit [Spell as one word without hyphen] governance plan a function that provides standards and guidelines for a structured board of directors (McCambridge, 2004; Renz, 2013) and controls the organization to meet stakeholders and business goal (Goergen, 2012). To further explain governance, it is the manner in which decision-making is processed based [Passive voice ] on the approved and established mission, values, and vision. Bienvenidos mission, values, and vision are as follows: