Exceptional Boards and Their Impact on Nonprofit Performance

[MSONGA The Consultant]

Regardless of its size and funding level, every nonprofit organization has a governing board composed of people who believe in and support the mission. Board members have the pleasure and the responsibility of monitoring, overseeing, and providing direction for the organization ’ s pursuit of that mission.

A Nonprofit organization Board may meet every legal requirement, adhere to proper procedures, and still be ineffective if it is not engaged in setting strategic direction and supporting the organization. If a board neglects the full range of its responsibilities, it may preclude the organization from reaching its potential.

• Responsible Board: A responsible board is capable and dutiful in carrying out its responsibilities. This is not always an easy feat, nor should it be taken for granted by board or staff members. A responsible board understands its fiduciary obligations, and it adds value to the organization by approving strategic plans and budgets, regularly reviewing financial statements, evaluating the chief executive annually, and participating in fundraising.
• Exceptional Board: This kind of board operates on a higher level. Its members give more of their time, talent, and treasure. But they also give differently. Their time may be spent more wisely, their skills and social networks better leveraged, and their treasure more strategically deployed. Exceptional boards measure organizational impact and evaluate their own performance, discuss and debate issues, and open doors and make connections.

In 2005, BoardSource published The Source to inspire nonprofit boards to operate at the highest level and make the best use of their collective capacity. It outlined 12 principles of good governance exhibited by exceptional boards. The principles are as follow;

1. Constructive partnership. Exceptional boards govern in constructive partnership with the chief executive, recognizing that the effectiveness of the board and chief executive are interdependent.
2. Mission driven. Exceptional boards shape and uphold the mission, articulate a compelling vision, and ensure the congruence between decisions and core values.
3. Strategic thinking. Exceptional boards allocate time to what matters most and continually engage in strategic thinking to hone the organization ’ s direction.
4. Culture of inquiry. Exceptional boards institutionalize a culture of inquiry, mutual respect, and constructive debate that leads to sound and shared decision making.
5. Independent mindedness. Exceptional boards are independent minded. They apply rigorous conflict - of - interest procedures, and their board members put the interests of the organization above all else when making decisions.
6. Ethos of transparency. Exceptional boards promote an ethos of transparency by ensuring that donors, stakeholders, and interested members of the public have access to appropriate and accurate information regarding finances, operations, and results.
7. Compliance with integrity. Exceptional boards promote strong ethical values and disciplined compliance by establishing appropriate mechanisms for active oversight.
8. Sustaining resources. Exceptional boards link bold visions and ambitious plans to financial support, expertise, and networks of influence.
9. Results oriented. Exceptional boards are results oriented. They measure the organization’s progress toward mission goals and evaluate the performance of major programs and services.
10. Intentional board practices. Exceptional boards purposefully structure themselves to fulfill essential governance duties and to support organizational priorities.
11. Continuous learning. Exceptional boards embrace the qualities of a continuous learning organization, evaluating their own performance and assessing the value they add to the organization.
12. Revitalization. Exceptional boards energize themselves through planned turnover, thoughtful recruitment, and inclusiveness.

Nonprofit organizations now operate in uncertain environments, their survival depends on the type of board they have. An exceptional board is an ideal board for nonprofits, these boards operate at the highest level and make the best use of their collective capacity.

By
Omar MSONGA
Strategic Management & Fundraising Consultant
Business Strategy | Resource Mobilization | Capacity Building
📞 +255 719 518 367
📧: msongatheconsultant@gmail.com
📍 Tanzania | Working Across Africa & Internationally
"Smart strategy. Sustainable growth. Lasting impact"