Summary

Nonprofit boards go through three phases. In the first phase, there is an organizing board that is small, homogeneous, and not very involved in governance. In the second phase, there is a governing board that is larger, more diverse, and accepts responsibility for running the organization. In the third phase, there is an institutional board that delegates governance to committees, and spends most of its time providing access to funders and other influential members of the community.

The Background

Let`s see how the governing board might work in practice. In February 2005, the board of Tomorrow`s Adolescent Fund (a nonprofit organization dedicated to helping children with unusual bone disorders) noticed that the organization appeared to have stalled under the leadership of executive director, David Waitt. No new grants were coming in, staff seemed uncertain about their responsibilities, and the board had started to receive complaints from clients.

The Solution

To remedy this problem, the board embarked on an organizational review designed to uncover the underlying causes of the problem. The board discovered that a central cause of the problem was a lack of accountability at all levels of the organizational hierarchy. It was more important than ever that the board now adopt policies and procedures for organizational planning and staff reporting on goals and objectives.

Lessons Learned

This example illustrates that the transition to a governing board is usually precipitated by some form of crisis. This could be a crisis over money, or a power struggle between the executive director and the board. Whatever the cause, the crisis causes the boad to shift its focus from operational tasks to more governance responsibilities such as setting direction, performing oversight, and ensuring adequate resources. This phase marks a more balanced relationship between the board and executive director, and a sharing of power and authority. This stage also requires a substantial amount of time from the board chair as he/she takes real responsibility for developing clear expectations for the board and the executive director.