Chap 4

4.
Nonprofit governance and leadership

for social impact
Lyn P. Corbett and Colton C. Strawser
INTRODUCTION
Nonprofit organizations that focus on implementing good governance prac-

tices are better prepared to lead their organizations through turbulent times
and periods of organizational growth. Good governance can lead to great
results; however, the role of an effective board is often overlooked in the
literature (Cornforth, 2012). Within nonprofit organizations, the age, size,
and environment influence leadership in governance and impact the role of
the board as a high functioning team. There is an increasing need to develop
the next generation of nonprofit leaders by equipping them with the essential
skills to support and develop strong boards and strong communities. Although
many may perceive nonprofit organizations as being dependent or subservient
to the other sectors, nonprofit organizations fulfill a vital function that the
other sectors may not be able to provide on their own. Nonprofit organizations
have the professional capacity, specialized knowledge, and ability to tailor
programs to specific communities and conditions, demonstrating more of an
interdependent relationship (Smith and Lipsky, 1993). In addition, nonprofit
organizations often maintain a higher level of community trust than both the
government and business sectors (Kingma, 2003), which places a different
level of responsibility on nonprofit organizations and their governing boards.
Although many students volunteer, participate in activities, or are employed
by nonprofit and voluntary organizations, many have limited experience
engaging with the governance functions of the organization. Having an under-
standing of nonprofit governance and ways to engage a board of directors
can be an invaluable skill. There is an entire NACC guideline dedicated to
nonprofit governance and leadership that includes: (5.1) Role of nonprofit
boards and executives in providing leadership at the organizational, commu-
nity and societal levels through various structures and authority models; (5.2)
Theories of nonprofit boards and governance; (5.3) History and function of
nonprofit governing boards and how these roles and functions compare to
56
Lyn P. Corbett and Colton C. Strawser - 9781788118675

Downloaded from https://www.elgaronline.com/ at 04/10/2024 03:26:04PM
via Nanyang Technological University, Singapore
Nonprofit governance and leadership for social impact 57
governing boards in the public and for-profit sectors; (5.4) Distinctive roles
and responsibilities between nonprofit boards and nonprofit executives and the
role of boards and the executive team in stewarding and achieving the mission
and vision of nonprofit organizations; (5.5) Role, function and structure of
boards that serve to advance networks of nonprofits and through multi-sector
partnerships to achieve a mission; (5.6) Process of board development as a tool
not only to create effective governing boards but also to ensure a successful
board–executive relationship, succession planning and board renewal; and
(5.7) Role of structures and policies in effective governance.
Due to the wide-reaching nature of nonprofit governance, many nonprofit
governance principles are distributed throughout other guidelines. This chapter
discusses the topic of nonprofit governance, theories on governance and appli-
cation exercises in a stand-alone course; however, it may be integrated with
strategic planning, fundraising, and nonprofit theory and practice courses in
undergraduate and graduate programs.
THEORETICAL FRAMEWORK
Nonprofit governance has been studied in a myriad of ways within nonprofit

and philanthropic studies (BoardSource, 2016; Ostrower, 2007; Stone and
Ostrower, 2007). Over the years, various models have been created, best
practices touted, and step-by-step guides designed to provide nonprofit boards
with the essential tools needed to lead their organizations. While many of these
studies and resources have merit, there has not been a one-size-fits-all model
identified or implemented due to the unique nature of the nonprofit sector.
The word “governance” is derived from the Greek word, kebernon, which
can mean to steer, to control, and to influence from a position of authority.
A nonprofit board is often seen as the leading authority for nonprofit organ-
izations and is fundamentally responsible for defining and upholding the
organization’s mission, vision, and core values. The relationship between the
board, executive director, and staff can either help or hurt an organization;
therefore, it is imperative that those studying nonprofit governance understand
the unique dynamics at play. This chapter provides an overview of effective
governance principles as well as classroom activities for board structures,
policies, succession planning, strategic board recruitment, and strategies for
running effective board meetings.
The nonprofit governance teaching application requires an understanding
of how each of these theories relates to the role of governance in the nonprofit
sector. There are three theoretical frameworks that are most commonly used
to describe the uniqueness of the sector: Stakeholder Theory, Agency Theory,
and Resource Dependence Theory.

58 Teaching nonprofit management
Stakeholder Theory posits that a major role of the board is to ensure that
“maximum possible value is generated ... for the benefit of all stakeholders”
(Freeman, 1984, p. 208). In this approach, nonprofit organizations appear
to favor the needs and expectations of their stakeholders. Whereas Agency
Theory focuses on ensuring that agents act in the best interests of principle
organization and highlights the monitoring role of the board (Jensen and
Meckling, 1976), Resource Dependency Theory is often used to examine the
structure of governance in the nonprofit sector, highlighting the interdepend-
ency between nonprofits, funders, and the community (Pfeffer and Salancik,
2003).
Resource Dependency Theory rests on three main tenets: an organization
needs resources to survive and meet its goals; organizations strive to acquire
and sustain resources from the external environment or from other organi-
zations; and, power and dependence play significant roles in understanding
inter-organizational relationships (Malatesta and Smith, 2014; Pfeffer and
Salancik, 2003). Organizations are expected to respond to their environment
strategically; they seek to manage their environment and/or their dependence
on external resources (Moulton and Eckerd, 2012). Inter-organizational rela-
tionships help to stabilize organizations, provide direction and stability, and
minimize uncertainty (Pfeffer and Salancik, 2003). This theory has strong
implications for nonprofit governance as nonprofit boards are the decision
makers when it comes to the solicitation, negotiation, and allocation of agency
resources.
While theories are helpful in explaining the need for nonprofit boards, there
is limited literature from an academic perspective on implementation since the
nature, demographics, and function of nonprofit boards can be very different,
based on a multitude of factors. While some organizations have extensive
processes in place, others may not. Nonprofit boards whose members are dis-
connected, disengaged, or disregarded, are much more likely to misunderstand
or be unfamiliar with the roles, rights and responsibilities associated with
board participation.
When teaching nonprofit governance, a case study approach is often best
to assist students in understanding real-world examples and challenges that
nonprofit governing boards may face. Case studies will provide students with
the opportunity to apply what they have learned to real issues. Because each
student brings unique perspectives and experiences to the class, engaging stu-
dents to participate in class discussions on different approaches to the cases is
essential to their learning as well as that of other students. Case study resources
are included in various forms throughout this chapter; however, if you wish to
provide your students with highly engaging case studies in all types of courses,
we highly recommend utilizing Cases in Nonprofit Management: A Hands-On
Approach to Problem Solving (Libby and Deitrick, 2016), which provides

cases that can be used to further student learning across this and other NACC
guidelines. The following sections provide perspective on the principles and
duties of nonprofit governance along with recommended readings, activities,
and reflection questions.
NONPROFIT GOVERNANCE IN PRACTICE
As identified previously, theoretical frameworks can provide the foundation

for understanding nonprofit organizations and the roles and responsibilities of
board members. However, it is the practice, consistency, and implementation
of the duties of a nonprofit board that often consume much of the energy and
resources of nonprofit boards.
The Duties of Nonprofit Governance
Board members are entrusted with the responsibility of ensuring that sound
management practices are implemented to govern a nonprofit organization
properly. Standards of conduct that all board members must adhere to are
usually described as the duty of care, duty of loyalty, and duty of obedience
(BoardSource, 2016). It is important that students understand these three
standards of conduct as much of the scrutiny placed on nonprofit boards can be
traced to the lack of adherence to the duty of care, duty of loyalty, and duty of
obedience standards identified below.
Duty of care
As a financial steward of the organization it is imperative that board members
take the time to ensure that the organization is operating well and that the
board member is informed of the various laws and regulations affecting the
organization and its work in the community. In addition, the board member
must be willing to ask questions, seek truth, and operate within the roles and
responsibilities assigned to them by the board of directors.
Duty of loyalty
This duty requires board members to act in the best interest of the organization
by acting with honesty, integrity, and in good faith for what is best for the
organization. It is important for board members to share their views and opin-
ions but be content if the group does not approve their suggestions or reach
a consensus on every topic.
Duty of obedience
Board members are responsible for being informed of the organization’s
bylaws and articles of incorporation to ensure the organization is being gov-

erned as approved by the state and federal government, as well as any other
applicable governing bodies. In addition, board members are responsible for
staying engaged with the organization and ensuring they are up-to-date on the
organization’s activities by being present at board meetings, serving on com-
mittees, and any other type of reasonable support to ensure the organization is
following any laws and regulations.
Models and Principles of Governance
In their seminal work Governance as Leadership: Reframing the Work of

Nonprofit Boards, Chait et al. (2011) identify the three modes of governance as
Fiduciary, Strategic, and Generative. Their model is illustrated in Governance
as Leadership: The Governance Triangle. It is important to note that boards
must understand and be able to differentiate each mode as together they form
what is defined as “governance as leadership” (Chait et al., 2011).
Through the Fiduciary Mode, boards are focused on financial matters
and appropriate use of resources. In the Strategic Mode, nonprofit boards
develop strategy alongside management, and deploy resources accordingly.
In the Generative Mode, nonprofit boards engage in deeper inquiry, and seek
alternative courses of action. Through the lens of Governance as Leadership
nonprofit boards focus on new practices of governance and seek different ways
of approaching their work.
Exceptional Boards can provide significant utility to nonprofit organi-
zations as they advance their mission, implement their vision, and live out
their core values. However, making the leap to being an exceptional board
can be elusive. BoardSource has introduced a set of principles that provides
a framework to capture components of exceptional boards, called the Twelve
Principles of Governance that Power Exceptional Boards (Table 4.1). Utilizing
these principles allows for boards to focus on their specific role, staying the
course of the organization’s mission, and creating a collegial environment in
and out of the boardroom.
Organizational Lifecycles
Due to numerous internal and external environmental factors, nonprofit

organizations find themselves at different stages of the organizational lifecy-
cle (Figure 4.1). A recession, shifts in funding, or changes in leadership can
cause the most mature of organizations to migrate back to the start-up phase.
In addition, those who do not aim to establish ways to renew themselves can
become stagnant, which may lead to a decline in organizational structure and
put organizations at risk of dissolution.

Table 4.1 BoardSource twelve principles of governance that power

exceptional boards
1. Constructive Partnership: Exceptional boards govern in constructive partnership with the chief
executive, recognizing that the effectiveness of the board and chief executive is interdependent.
They build this partnership through trust, candor, respect, and honest communication.
2. Mission Driven: Exceptional boards shape and uphold the mission, articulate a compelling vision,
and ensure the congruence between decisions and organizational values. They treat questions
of mission, vision, and core values not as exercises to be done once, but as statements of crucial
importance to be drilled down and folded into deliberations.
3. Strategic Thinking: Exceptional boards allocate time to what matters most and ensure the
congruence between decisions and core values.
4. Culture of Inquiry: Exceptional boards institutionalize a culture of inquiry, constructive debate, and
engaged teamwork that leads to sound and shared decision making.
5. Independent-Mindedness: Exceptional boards are independent-minded. When making decisions on
behalf of the organization, board members put the interests of the organization above those of the
chief executive, themselves, or other interested parties.
6. Ethos of Transparency: Exceptional boards promote an ethos of transparency and ethical behavior
by ensuring that donors, stakeholders, and interested members of the public have access to
appropriate and accurate information regarding finances and operations.
7. Compliance with Integrity: Exceptional boards govern with full recognition of the importance of
their fiduciary responsibilities, developing a culture of compliance through appropriate mechanisms
for active oversight.
8. Sustaining Resources: Exceptional boards ensure that the organization’s resources are balanced
with its strategic priorities and capacities. Individual board members extend the reach of the
organization by actively using their reputations and networks to secure funds, expertise, and access.
9. Results Oriented: Exceptional boards track the organization’s advancement towards mission and
evaluate the performance of major programs and services.
10. Intentional Board Practices: Exceptional boards make form follow function when it comes to their
operations. To provide stable leadership to the organization, they invest in structures and practices
that transcend individuals and thoughtfully adjust them to suit changing circumstances.
11. Continuous Learning: Exceptional boards embrace the qualities of a continuous learning
organization, evaluating their performance and assessing the value that they add to the organization.
12. Revitalization: Exceptional boards revitalize themselves through planned turnover, thoughtful
recruitment, and intentional cultivation of future officers.
Note: Used with permission of BoardSource. For more information on BoardSource visit www
.boardsource.org. Content may not be reproduced or used for any purpose other than what is
specifically requested without written permission from BoardSource: https://boardsource.org/
product/source-twelve-principles-governance-power-exceptional-boards/.

Source: Used with permission. Adapted from Nonprofit Lifecycles: Stage-Based Wisdom for
Nonprofit Capacity (Stevens, 2001).
Figure 4.1 Organizational lifecycles
An organization’s placement on the organizational lifecycle does not necessar-

ily depend on the age of the organization. BoardSource, a global network for
boards, has created a variety of resources to inspire and support excellence in
nonprofit governance. In their Nonprofit Organizational Lifecycle Assessment
Grid, Connelly (2006) published an assessment grid to demonstrate the differ-
ent aspects of organizational lifecycle stages (see Table 4.3 below).
Progression through the stages is not based on how long a nonprofit organ-
ization has been in existence, but more of an organic and nonlinear process
based on functioning. All organizations may not go through all stages. The
old adage, “what got you here, won’t get you there” rings true in this model.
Effective nonprofit boards continually assess their organization to identify
their current stage as a means of gaining an understanding of their current
needs with a focus on what is needed for the future.
The practice of good governance is not the responsibility of a single individ-
ual or particular group of the board, but rather a collective effort on the part of
the board and staff to make positive decisions on behalf of the organization. By
ensuring the implementation of best practices for nonprofit boards, an organ-
ization can work to ensure that the mission is being implemented and that the
talent of the board is fully optimized.
TEACHING EXERCISES
Each of the teaching exercises provided allows students the opportunity to

identify various approaches to understanding the practices of nonprofit boards.
They include Cataltic Questions, Organizational Lifecycles, Exceptional

Governance, and Strategic Board Recruitment. The end of each exercise pro-
vides questions, instructions for additional activities and discussions.
Exercise 1: Strategic Catalytic Questions
Catalytic questions about nonprofit boards are questions that stimulate think-
ing, challenge assumptions, and lead to good problem solving and strategy
development.
Exercise description
Students are introduced to the Governance Triangle and then discuss possible
answers to Sample Catalytic Questions (Table 4.2).
Table 4.2 Sample catalytic questions
Key questions nonprofit board members could ask in the Fiduciary Mode:
1. How would we respond if we lost our main source of funding?
2. What can we learn from our last two audits? Are there any patterns?
Key questions nonprofit board members could ask in the Strategic Mode:
1. What specific steps can we take as a board and staff to improve the organization’s image and
reputation in the community?
2. What is our competitive advantage? Would we be missed if we closed our doors tomorrow?
Key questions nonprofit board members could ask in the Generative Mode:
1. What is the biggest gap between what the organization claims it is and what it actually is?
2. What will be most strikingly different about this organization in five years?
Source: Adapted from Governance as Leadership: Reframing the Work of Nonprofit Boards
(Chait et al., 2011).
Exercise 2: Organizational Lifecycles
Although nonprofit organizations may look similar, they can be at different

stages of the organizational lifecycle. Identifying where an organization is
located at any given time can be an indication of the type of support that both
the board and organization may require.
Students are introduced to the Organizational Lifecycle (Figure 4.1) and the
organizational assessment example in Table 4.3.
This exercise takes approximately 30–45 minutes to complete in class or can
be completed in an online discussion module.

Table 4.3 Organizational assessment example
Nonprofit Organizational Lifecycle Assessment Grid

Start-Up (to Adolescent (to Mature (to Stagnant (to Defunct (to
begin) grow) sustain) renew) dissolve)
Organizational Organization On an ongoing Organization Organization
leaders have undertakes basis, organization candidly assesses assesses itself and
periodic reflective a formal assesses itself itself, recognizes recognizes that
conversations self-assessment (perhaps using an the need for it needs to shut
about how the process annually outside consultant organizational down.
organization is (perhaps using to facilitate the renewal, identifies Organization
performing and an organizational process), identifies critical areas for identifies
identify basic ways self-assessment comprehensive organizational resources, assets,
to improve the instrument), needs for improvement, and programs that
management and identifies needs improving the and incorporates other nonprofits
governance of the for improving the management and this thinking into in the community
organization. management and governance of a renewal process. might be able to
governance of the organization, use or acquire.
the organization, and incorporates
and incorporates this thinking into
this thinking a strategic planning
into a strategic process.
planning process.
product/navigating-organizational-lifecycle/.
Source: Adapted from Connelly (2006).
DISCUSSION QUESTIONS
1. What are three areas of support that might be needed for nonprofit
boards in the start-up phase that might not be necessary in the growth
phase?
2. What might indicate an organization is entering the stagnant phase?
3. What actions can a nonprofit board engage in when identifying
a decline phase? What are the characteristics of an organization in the
sustain phase of the organizational lifecycle?

Exercise 3: Exceptional Governance
While many nonprofits have different business models, the overall governance
functions should look similar. For-profit boards are tasked with ensuring
that shareholder value is maintained and increased, while nonprofit boards
are tasked with ensuring that impact is being made through the programs
and services that are provided by the organization. BoardSource (2005) has
identified Twelve Principles of Governance that Power Exceptional Boards
(Table 4.1). These 12 principles can be used by both nonprofit boards and staff
as a framework for increasing value for their organizations. Students can use
these principles to identify components of what boards can pursue to reach
higher levels of performance.
After reading the Twelve Principles of Governance that Power Exceptional
Boards, students should have an understanding of the principles that boards
may use to increase accountability, review performance, and identify priorities
for growth. Select two of the 12 principles and discuss how an organization
may be impacted if neither of these principles were properly implemented.
Exercise 4: Strategic Board Recruitment
A nonprofit board is only as good as the commitment of individual board

members. A focus on board member recruitment, engagement, and education
are essential for the success of the sector. As Collins (2001) states in his book
Good to Great, much of the work is often about getting the right people on the
bus. The duties of care, loyalty, and obedience are only the starting point for
protecting organizations from the risk and compliance standards set by juris-
dictions across the country. Implementing a board building practice is essential
to the success of a board, beginning with strategic board recruitment.
Many nonprofit boards are beginning to require that all board members
serve on a committee prior to being invited to join the board. Although bylaws
often have to be amended to allow for this practice, this provides the board the
opportunity to assess the commitment level of the individual. This also allows
the potential board member the opportunity to get to know the organization,
its policies, and practices. Although there are many organizations that provide
tools to assist with the recruitment of board members (e.g., BoardSource,
National Council of Nonprofits), it is important to assist students in under-
standing the importance of viewing board recruitment as a strategy that is
intentional and ongoing.
A great recruitment hint is to incorporate a Board Buddy Program. To
implement this process, immediately assign each new board member a Board

Buddy. Be intentional about preparing and matching board members. A Board

Buddy’s responsibilities include meeting with new board members prior to
their first meeting and also waiting outside the boardroom for the new board
member to arrive, so they can be welcomed and introduced individually to
each board member prior to the start of the meeting. These simple actions go
a long way in helping new board members feel welcome and supported.
The following activities provide students the opportunity to think of new
and creative board engagement strategies.
Case study
The Board of Directors of Canyon Community Center has recently become
aware of the departure of its founding CEO. She is well loved and is seen
as a leader in the community. As the organization has grown over the last
several years, so have the responsibilities of the CEO position. With a budget
of over $5 million, Canyon Community Center is now the largest serving
youth agency in the city of Denver and currently has over 250 employees. As
the CEO announced her retirement so did seven of the board members who
were really on the board because of their relationship with the CEO. With
a 15-member board, the remaining board members are faced with recruiting
new board members and acclimatizing them to the organization. Although the
agency is financially strong, with several months of reserve funding at their
disposal, the board governance practices are very informal and board meetings
lack structure, and many of the board members have been on the board for
the organization since its inception. The board chair has been on the board for
less than a year and the only committee that is in existence is the executive
committee.
Assignment: class case study discussion

Below are several questions which can be used to spark class or small group
discussions.
• What are the biggest challenges facing the new board?

• Is the departure of the CEO and several board members a challenge or an
opportunity?
• What are the qualities needed in a person seeking to become the next CEO
of Canyon Community Center?
• What does the board do in the interim?
Assignment: board skills matrix

Board members should be recruited based on their skills, talents, traits, assets,
and ability to support the organization now and in the near future. Many non-

profit boards use a Board Skills/Attributes Matrix to assess their diversity.

Although diversity of experience and diversity of opinion are essential,
ensuring that the board is reflective of the population being served and the
community is equally important. The nonprofit, Network for Good, iden-
tifies five traits of great board members as: (1) Great board members hold
themselves and the organization accountable; (2) They are passionate about
the mission; (3) They open doors to donors—and are donors themselves;
(4) They focus on the mission with a view to the big picture; and (5) they
aren’t afraid to ask the hard questions creating a strong culture of inquiry.
One of the most powerful activities that a board member can perform
is using their connections to further the mission of the organization, often
denoted as “boundary spanning.” Boundary spanners are referred to as
individuals who enact extensive communication through individual ties to
external organizational members and serve as exchange agents between the
organization and the environment (Levine and White, 1961). By engaging
stakeholders, nonprofits build social capital by working toward mutual and
collective goals (Young, 1999).
Researchers have identified a direct correlation between boundary span-
ning and increased resources, stating that with a greater degree of bound-
ary spanning comes a greater growth in contributions (Bradshaw et al.,
1992). As demonstrated in Figure 4.2A and Figure 4.2B, the definition of
diversity has expanded to include diversity of experience and diversity of
opinion. Having students review the Board Member Skills Matrix will help
expand their thinking on the different characteristics of board members.
The Board Member Skills Matrix is a tool that helps identify areas where
your organization needs support. This tool was not developed to be used
solely for identifying ethnic diversity, but to widen the thinking behind
all of the unique skills and characteristics that individuals can bring to the
board. Students should remain aware that different stages of the organiza-
tional lifecycle require different characteristics and experiences of board
members.
Assignment: internet scavenger hunt/written assignment

Find three nonprofit board member recruitment packets from nonprofit
organizations on the web. Identify the pros and cons of the way each
is presented. Based on a fictional nonprofit organization, develop your
own board recruitment packet that outlines the characteristics of an ideal
member of your nonprofit.
• What specific traits would you identify for a new board member?
• What are the core components of a good board recruitment pack?

specifically requested without written permission from BoardSource.
Source: Adapted from The Board Building Cycle (Lakey and Hughes, 2007).
Figure 4.2A Sample board member skills matrix
specifically requested without written permission from BoardSource.
Source: Adapted from The Board Building Cycle (Lakey and Hughes, 2007).
Figure 4.2B Sample board member skills matrix

• How can the board member recruitment packet be utilized to attract

potential board members?
Exercise 5: Creating a Culture of Inquiry
As previously mentioned, creating a culture of inquiry involves creating

a space where board members are invited to participate in civil discourse while
contributing their unique viewpoints to the conversation. By establishing
a decorum within the boardroom that creates a space to be inquisitive, organi-
zational leaders are able to look at an issue through multiple lenses and better
predict both the positive and negative outcomes of their decisions.
A culture of inquiry includes being intentional about implementing and
reinforcing characteristics of the Culture of Inquiry Checklist (Figure 4.3) into
your governance structure.
product/culture-of-inquiry-healthy-debate-boardroom/.
Figure 4.3 Culture of inquiry checklist
The following exercise can be used to help students gain experience helping
board members reflect on the culture of the board through a series of true or
false questions.

T/F Tough questions can NOT be shared during the meeting and must be
written down and shared with the board chair at the end of the meeting.
Answer: False.
T/F The best conversations occur in the parking lot after the meeting.
Answer: False.
T/F A shared culture of inquiry leads to better, more informed decisions
within the group. Answer: False.
T/F Effective boards seek out multiple sources of information, question
assumptions, and challenge conclusions. Answer: True.
Exercise 6: Board Dashboards
Nonprofit boards are using dashboards more frequently to provide focused

attention on key success factors. Similar to the dashboard in a car, dash-
boards can be created in a way that lets board members get a snapshot of
where the organization stands financially, strategically, and programmatically.
Dashboards should not take the place of the standard financials presented at
board meetings but be presented in addition to them as a high-level overview
of what board members identify are areas they would like to monitor more
closely.
What are the items that a board member might like included on a dashboard
based on the scenario listed below?
A nonprofit organization has been spending their reserves. Their largest
contract takes almost six months to reimburse expenses. Enrollment in their
programs has been erratic, and levels of staff satisfaction are decreasing.
Answer: In this scenario, dashboard items may include bank balances, out-
standing invoices, length of time it takes for contract reimbursements, balance
of reserves, staff satisfaction surveys, and program enrollment.
CONCLUSION
This chapter discussed the topic of nonprofit governance, theories on gov-

ernance and provided application exercises to further general knowledge of
governance principles. Many nonprofit governance principles are not only
specifically outlined in the NACC guidelines, but distributed throughout other
guidelines as well. Building the knowledge base of students on the distinctive-
ness of nonprofit governance provides for a better understanding of the non-
profit sector and how boards can impact the growth or shrinkage of nonprofit
organizations. The age, size, and environment influence leadership in govern-

ance and provide boards with a challenge when addressing the rising needs of
communities. A focus on board development, education and accountability
will provide boards the support needed to develop strong boards that can lead
to stronger organizations. The questions and exercises contained within this
chapter can help students bridge theory with practice to better understand the
role of governance in organizational effectiveness. The case study method
provides increased capacity to work through ambiguity, complex problem
solving, and effective inquiry. This chapter provides students with the infor-
mation needed to articulate the purpose, role, and responsibilities of a non-
profit governing board.
Although there are theoretical frameworks such as Stakeholder Theory and
Resources Dependence Theory that help provide a foundation, the character-
istics that define and describe the effectiveness of good governance lie in the
ability of students, instructors, and professionals to act in the best, and some-
times competing, interests of an organization.
DISCUSSION QUESTIONS
The following discussion questions will sharpen critical thinking skills and
independent problem-solving techniques relevant to the development of
good governance in nonprofit organizations:
• How might the current political landscape change the function of non-
profit boards?
• What emerging trends will change the accountability of nonprofit
boards?
• What key criteria do nonprofit boards need to be aware when down?
• What other traits can be identified in great board members?
• How may the type of needed board member traits change per the
lifecycle stage of an organization?
• What strategies can nonprofits implement to increase the diversity of
their boards?
• Why should nonprofits seek to have a diverse board?
• What strategies can board members implement to create and maintain
a culture of inquiry?
• If a board has a vanishing culture of inquiry, what actions can boards
take to claim back this essential component?

REFERENCES
BoardSource (2005). The source: Twelve principles of governance that power excep-
tional boards. Washington, DC: BoardSource.
BoardSource (2016). Board responsibilities and structures. Accessed 17 April 2018 at
https://boardsource.org/resources/board-responsibilities-structures-faqs/.
Bradshaw, P., Murray, V. and Wolpin, J. (1992). Do nonprofit boards make a dif-
ference? An exploration of the relationships among board structure, process, and
effectiveness. Nonprofit and Voluntary Sector Quarterly, 21(3), 227–49.
Chait, R., Ryan, W. and Taylor, B. (2011). Governance as leadership: Reframing the
work of nonprofit boards. Hoboken, NJ: John Wiley & Sons.
Collins, J. (2001). Good to great: Why some companies make the leap ... and others
don’t. New York, NY: Harper Business.
Connelly, P. (2006). Navigating the organizational lifecycle: A capacity building guide
for nonprofit leaders. Washington, DC: BoardSource.
Cornforth, C. (2012). Nonprofit governance research: Limitations of the focus
on boards and suggestions for new directions. Nonprofit and Voluntary Sector
Quarterly, 41(6), 1116–35.
Freeman, R. (1984). Strategic management: A stakeholder approach. Boston, MA:
Pitman.
Jensen, M. and Meckling, W. (1976). Theory of the firm: Managerial behavior, agency
costs, and ownership structure. Journal of Financial Economics, 3(4), 305–60.
Kingma, B. (2003). Public good theories of the nonprofit sector. In Anheier, H.K. and
Ben-Ner, A. (eds), The study of the nonprofit enterprise (pp. 53–65). Boston, MA:
Springer.
Lakey, B. and Hughes, S. (2007). The board building cycle: Nine steps to finding,
recruiting, and engaging nonprofit board members. Washington, DC: BoardSource.
Levine, S. and White, P. (1961). Exchange as a conceptual framework for the study of
interorganizational relationships. Administrative Science Quarterly, 5(4), 583–601.
Libby, P. and Deitrick, L. (2016). Cases in nonprofit management: A hands-on
approach to problem solving. Thousand Oaks, CA: SAGE Publications.
Malatesta, D. and Smith, C. (2014). Lessons from resource dependence theory for
contemporary public and nonprofit management. Public Administration Review,
74(1), 14–25.
Moulton, S. and Eckerd, A. (2012). Preserving the publicness of the nonprofit sector:
Resources, roles, and public values. Nonprofit and Voluntary Sector Quarterly, 41(4),
656–85.
Ostrower, F. (2007). Nonprofit governance in the United States: Findings on perfor-
mance and accountability from the first national representative study. Washington,
DC: Urban Institute.
Pfeffer, J. and Salancik, G. (2003). The external control of organizations: A resource
dependence perspective. Palo Alto, CA: Stanford University Press.
Smith, S. and Lipsky, M. (1993). Nonprofits for hire: The welfare state in the age of
contracting. Cambridge, MA: Harvard University Press.
Stevens, S. (2001). Nonprofit lifecycles: Stage-based wisdom for nonprofit capacity.
Long Lake, MN: Stagewise Enterprises.
Stone, M. and Ostrower, F. (2007). Acting in the public interest? Another look at
research on nonprofit governance. Nonprofit and Voluntary Sector Quarterly, 36,
416–38.

Young, D. (1999). Complementary, supplementary or adversarial? A theoretical and

historical examination of nonprofit–government relationships in the U.S. In Boris,
E.T. and Steuerle, C.E. (eds), Nonprofits and government: Collaboration and con-
flict (pp. 31–67). Washington, DC: Urban Institute Press.


Chap 4

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Chap 4

Uploaded by

Copyright:

Available Formats

4.

Nonprofit governance and leadership

Nonprofit organizations that focus on implementing good governance prac-

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Nonprofit governance has been studied in a myriad of ways within nonprofit

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Lyn P. Corbett and Colton C. Strawser - 9781788118675

NONPROFIT GOVERNANCE IN PRACTICE

As identified previously, theoretical frameworks can provide the foundation

The Duties of Nonprofit Governance

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Models and Principles of Governance

In their seminal work Governance as Leadership: Reframing the Work of

Due to numerous internal and external environmental factors, nonprofit

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Table 4.1 BoardSource twelve principles of governance that power

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Figure 4.1 Organizational lifecycles

An organization’s placement on the organizational lifecycle does not necessar-

Each of the teaching exercises provided allows students the opportunity to

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Exercise 1: Strategic Catalytic Questions

Table 4.2 Sample catalytic questions

Exercise 2: Organizational Lifecycles

Although nonprofit organizations may look similar, they can be at different

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Table 4.3 Organizational assessment example

Nonprofit Organizational Lifecycle Assessment Grid

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Exercise 3: Exceptional Governance

Exercise 4: Strategic Board Recruitment

A nonprofit board is only as good as the commitment of individual board

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Buddy. Be intentional about preparing and matching board members. A Board

Assignment: class case study discussion

• What are the biggest challenges facing the new board?

Assignment: board skills matrix

Lyn P. Corbett and Colton C. Strawser - 9781788118675

profit boards use a Board Skills/Attributes Matrix to assess their diversity.

Assignment: internet scavenger hunt/written assignment

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Figure 4.2A Sample board member skills matrix

Figure 4.2B Sample board member skills matrix

Lyn P. Corbett and Colton C. Strawser - 9781788118675

• How can the board member recruitment packet be utilized to attract

Exercise 5: Creating a Culture of Inquiry

As previously mentioned, creating a culture of inquiry involves creating

Figure 4.3 Culture of inquiry checklist

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Exercise 6: Board Dashboards

Nonprofit boards are using dashboards more frequently to provide focused

This chapter discussed the topic of nonprofit governance, theories on gov-

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Lyn P. Corbett and Colton C. Strawser - 9781788118675

Young, D. (1999). Complementary, supplementary or adversarial? A theoretical and

Lyn P. Corbett and Colton C. Strawser - 9781788118675

You might also like