Non-profit organizations (npos) are a significant part of community life and the economy in the United States. The variety of their purposes and sizes presents challenges of analysis, understanding, and efficient and effective operation.
In the State of West Virginia, for example, there are approximately 10,000 active stand alone npos with another 3,000+ faith based organizations. These organizations together employ upwards of 10% of the State's work force with an impact on the wage base and economy in the hundreds of millions of dollars annually. The number and distribution of npos in West Virginia appears to be representative of the country at large, with the number of people per npo in WV in the general range across all the states.
Governance of these npos would not be possible without the volunteers who serve on their boards in a constant give-and-take of egos, ideas, and responsibilities. Good people with good intentions, who too often do not know enough to know they don't know enough, these board members are under increasing pressure as scrutiny of organization governance practices trickles down from the Federal level to our states and communities, regulation inevitably grows, and the need to know more for effective and efficient governance increases.
This book is designed to act as a practical introduction to what board members do and what they have to know. Working tools and examples of best practices are presented for use as appropriate. By clarifying the practical and legal expectations of board members, and encouraging pertinent education, the intent is to help volunteer board members move from wondering what they are supposed to know and do to how to apply that knowledge to any particular organization.
Here is a thought-provoking synopsis of board member responsibilities and tools to carry out those responsibilities. Just as one size doesn't fit all, no one tool or practice will be best for all npos. Combining the best practice ideas presented in this synopsis with the particular policies and practices of an npo will enable that npo to build a living reference guide and governance manual that should answer the questions “What do I need to do?” and “What do I need to know?” for any board member on an ongoing basis.....
.. BOARDSMANSHIP is the term we use to talk about the practical art of serving as an executive board member. Both for-profit organizations and non-profit organizations use boards comprised of individuals who have the legal and moral responsibility to lead the organizations. These groups of individuals, whether in the for-profit world or in the non-profit world, have core responsibilities which can be grouped and analyzed in a number of ways. No matter how they are grouped, however, these responsibilities are basically the same in both the for-profit and non-profit worlds. This resource follows the precedent of dividing the responsibilities into six categories. These categories do not vary between for-profit and non-profit although the emphases will vary. The emphases also will vary from organization to organization in both worlds.
Responsibility for the CEO, for strategic planning for the organization, for obtaining resources for the organization, for monitoring the organization's operations, for the way the organization behaves, and for its own governance are the main categories of obligation for the executive board. All other responsibilities can be listed under one or another of these headings. This discussion reviews each of these areas with an eye to the general circumstances found under each area. Best practices of how different organizations approach different responsibilities are presented. Ideas and opportunities arise out of differences."