The Nonprofit CEO and Chair Partnership: Developing a Cohesive Board
Introduction
All nonprofit organizations (NPO) are required, by law, to have a board of directors who act as the governing body of the nonprofit. Board governance is the overall responsibility for the performance of the organization. Boards exist to ensure that a NPO runs properly, has integrity, protects its stakeholders, and assures competent management with evaluations that provide accountability for their actions and performance. The basic structure of a nonprofit is divided into governance and administration. A nonprofit board chair serves as the executive leader of the organization’s board, while the Chief Executive Officer (CEO) is the top staff administrator
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The organization who will be discussed in this paper is currently evolving from a grassroots phase to a growth phase. As this nonprofit prepares to embark on another strategic planning phase, the CEO and chair are aware that the role of the board is moving through its own phases of growth as well. The organization is no longer in its early stages of development, as such, leadership has self-reflected and is committed to amending the organization’s vision to take it to the next level. The CEO and chair are focused on providing the board the tools needed for appropriate management and effective governance as it moves through this stage in its lifecycle to the next. The leadership of this nonprofit is committed to maintaining a strong and constructive partnership which will assist in keeping everyone focused on the mission, foster the further definition of board members roles and responsibilities, introduce a performance evaluation of the board, honor legacy/founding members by instituting a legacy board, and provide additional resources and documents which strengthen the communication of the board’s fiduciary role.
Method
This research was conducted in March and April 2016, by one-to-one qualitative interviews with the CEO and board chair of a NPO that provides support to homeless women who are pregnant and in crisis. Since 2005, over 150 women have been provided with residential accommodations, life skill classes,
The nonprofit board and its governance are critical to an organization’s success. Brown (2007) stresses the need for governing boards to be informed, effective, and engaged, especially because the current environment (i.e. increasing competition for resources, etc.) demands high-quality board performance. The purpose of this paper is to examine existing literature as it relates to nonprofit board governance and performance. This analysis includes an examination of nonprofit boards’ roles, responsibilities, and functions along with a review of best practices. In addition, board roles and best practices, and their correlation to board performance is emphasized. Finally, a discussion of the practical implications of the literature as it relates to DavidsonWorks’ board ties the literature to real-world application.
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
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
The common profile of a homeless family is headed by a single mother, in her 20’s with an average of two children, of which one or both are under the age of six. Homeless mothers tend to be poorly educated, unemployed, and lacking the skills necessary to become employed. There is an equal representation of Caucasian (47%) and African American (47%) homeless mothers. These women commonly described their lives as ““… a remarkably constant stream of distressing and spirit-breaking encounters, beginning in early childhood …” including experiencing physical and/or sexual abuse, constant crisis, stress from persistent poverty, violence in the family and community, and isolation. Most of these women grew up homeless and spent their childhood in foster care making them distrustful of the system.
“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
The condition of homelessness for a pregnant woman creates all kinds of complexities to their care. The Nurse-Family Partnership and Invest in Kids program in Denver is a provider dedicated to forming relationships with patients and sending skilled nurses to help at risk mothers and their children. The health assessment needs of homeless pregnant women revolve greatly around prenatal health, nutrition, mental health, substance abuse and physical abuse screenings.
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
The board at Girls Inc. of Monroe County is composed of lawyers, consultants, financial advisors, marketing directors, and lawyers. The skillsets are directly linked with operating an efficient and effective organization. No longer is Girls Inc. of Monroe County’s board just composed of passionate volunteers or donors. Today’s board is filled with individuals who not only share that passion, but have the appropriate skillsets needed to achieve/create an effective strategy. As discussed in class, the roles of the board and staff at most non-profit organizations are intertwined (Coble, 2017), however at Girls Inc. of Monroe County, the board is tasked with strategic and mission development, not day-to-day tasks (“Governance,” 2017). Therefore, I see less of an overlap, which suggests that they are moving towards a more contemporary
1. Connors, T. D. (2001). The Nonprofit Handbook. New York: John Wiley & Sons, Inc. [US].
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
37). While the board oversees the financial position of the NPO, the CEO is more concerned with the ongoing activities that focus on the financial profits and losses. This interaction results in a certain degree of internal accountability due to the interdependence of the board and the CEO. The interaction also demands financial leadership on the part of both parties as is pointed out in APUS lesson 6 (2016), The board depends on the CEO to provide accurate and timely financial reports so they can provide him/her with reliable asset management. Peregrine (2012) mentions the current uptick in fraudulent activities relating to NPOs and how this has driven a deeper interest in the regulations provided by the Sarbanes-Oxley Act (para. 11). While SOX regulations are aimed more at board accountability, this washes over onto executive management as well. This demand for accountability becomes the foundation for better leadership in that it requires executive directors to better manage their teams so the information he/she is required to present to the board is consistently accurate. Also, there is a growing pressure for CEO’s of nonprofits to exercise better leadership skills because of a point mentioned earlier regarding the regulations from SOX that do apply to nonprofit organizations, namely whistleblower
In a nonprofit organization, managers are concerned with “generating some social impact” (Daft, 2013). Stakeholders for nonprofit organizations include the community, taxpayers, the government, private donors, employees, and volunteers. Each one of these stakeholders poses a challenge for managers. For instance, in a nonprofit organization, there is a “continual struggle to pursue vital social missions in the face of
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:
Not only does homelessness occur after contraception but it starts affecting these children from before birth age. Due to many mothers in recent years being teenagers who ages are decreasing year by year, these pregnant mothers go through their nine month pregnancy without proper treatment or care (4). “Fifty percent of homeless women versus fifteen percent of the general population have not had a prenatal visit in the first trimester of pregnancy” (4). Also the “service reports a forty percent substance use rate among women
A non-profit organization cannot be effectively managed if it is not effectively planned. One of the challenges facing non-profit organizations has been long range, strategic planning. Long range, strategic planning in the non-profit sector is essential to the success of an organization. Long range, strategic planning encompasses broad policy and direction setting, internal and external assessments, attention to key stakeholders, the identification of key issues, development of strategies to deal with each issue, decision making, action and the continuous monitoring of results. (Herman, The Jossey-Bass Handbook of Nonprofit Leadership and Management, 154) While it is important to deal with the short term planning and activities of non-profits, managers or directors must consider the future of their organizations. Successful planning should be comprehensive, integrating all areas of responsibility of an organization.