Goal Directive
1) When an organization is well managed; it has a clear mission, policy and program goals, under the leadership of an able board of directors.
2) When the Board of Directors has a commitment to it's agency the organization has a positive profile in the community as a result of effective, well-managed programs.
Indicators of Good Governance
- The board of directors is actively engaged in its oversight role and knowledgeable of the organization's key external and internal issues that affect its success. It focuses on policy development and on the strategic direction and evaluation of the organization, respecting the staff's responsibility for implementing policy directives.
- The board's effectiveness is apparent in well-run programs, well-managed operations, a stable funding base, and organizational sustainability/ longevity.
- The board has established clear leadership roles (officers and committee chairs) to drive its activities effectively; it fosters the development of new leaders to fill future roles as needed.
- The board understands its fiduciary and legal responsibilities.
- The board recognizes the critical importance of the grantmaker-grantee relationship.
Sample Q & A Guide
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Funders’ Questions For Nonprofits |
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Best Board Practices |
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| Is the board playing an appropriate role for the current stage of the organization's life cycle?
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Yes. Beyond the start-up phase of the organizational cycle, the board should not be involved in day-to-day operations. There should be clear delineation between governance and operational roles. |
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| How frequently does the board evaluate the performance of the chief executive?
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The board annually evaluates the performance of the chief executive. Organizations that perform executive evaluation sporadically should be encouraged to do it regularly. |
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| Is this evaluation based on organizational performance?
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Yes. The evaluation is based on performance criteria previously agreed to by both the board and the chief executive. |
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| How does the board set the chief executive's compensation?
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The board sets the chief executive's compensation at a |
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| Is the board aware of the need for succession planning?
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Yes. A succession plan is in place or under discussion for both the chief executive and the Board Chair positions. |
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| Has the board approved a risk-management policy that dictates how the organization is protected and should act in order to maintain the public trust?
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Yes. | | 