Adelphi Effective Governance Practices in A Non Profit Agency Memorandum

Adelphi Effective Governance Practices in A Non Profit Agency Memorandum Adelphi Effective Governance Practices in A Non Profit Agency Memorandum ORDER NOW FOR CUSTOMIZED AND ORIGINAL NURSING PAPERS Home > Humanities > Adelphi Effective Governance Practices in A Non Profit Agency Memorandum Question Description I need support with this Social Science question so I can learn better. The SQUEAKY-CLEAN Foundation has announced a competition for nonprofit agencies. The agency with the best governance practices, which must be described in detail in no 4 – 5 pages, will win a $1 million no-strings attached grant. The agency can use the grant for any purposes consistent with its mission. SQUEAKY-CLEAN has clearly stated that it is NOT interested in the type of services the nonprofit provides. The agency may describe the mission and services in ONE sentence, but not more. Any other discussion of the services in the memo submitted will disqualify the agency from the competition. The memo to the Foundation must be a maximum of 5 pages and must explain in detail how the agency is governed and why its governance systems work efficiently and keep the agency strong and well-financed. Please submit a proposal to the SQUEAKY-CLEAN Foundation outlining what you believe to be the excellent governance practices and procedures in a hypothetical agency of your choosing. Explain why you believe these practices protect the agency from financial problems, prevent corruption and self-dealing by board and staff, and ensure that board members meet their fiduciary responsibilities and staff are treated with dignity and respect. Be sure to explain clearly what conflicts and risks the agency is seeking to avoid. The SQUEAKY-CLEAN Foundation understands that no agency is perfect, so you may include discussions in your memo of areas in which the agency is actively working to improve its existing governance systems. Unformatted Attachment Preview II. 9 BASIC FUNCTIONS OF A NOT-FOR-PROFIT BOARD* The board of a not-for-profit organization is responsible for directing the affairs of the organization in accordance with its mission. In practice, the board delegates responsibility for managing the day-to-day activities of the organization to managers or staff; however, fiduciary duties cannot be delegated and, therefore, the board retains oversight responsibility for matters that have been delegated. ?? Selecting, monitoring, evaluating, compensating and – if necessary – replacing the Executive Director/Chief Executive Officer (the “CEO”), and developing and approving succession plans with respect to senior executives of the organization; ?? Defining and reevaluating from time-to-time the long-term strategy by which the organization fulfills its mission and monitoring the performance of the organization in implementing the strategy; ?? Reviewing and approving material capital allocations and expenditures and major transactions; ?? Approving budgets, financial plans and financial statements; monitoring and ensuring the integrity of the organization’s financial reporting processes, internal control systems and audit; hiring the independent auditor and assuring itself of the auditor’s independence; ?? Balancing constituency interests in a manner that is consistent with the mission; ?? Understanding the organization’s risk profile and reviewing and overseeing the organization’s management of risks; ?? Ensuring compliance with all applicable laws, regulations, policies and ethical standards of the organization (including laws and regulations enforced by the IRS, as well as the organization’s conflict of interest/related party transaction and other policies); ?? Assisting in obtaining resources through making personally meaningful financial contributions, fundraising and/or grant-writing; comply with prudent management of funds rules and donor-imposed restrictions; and ?? Establishing the composition of the board and its committees and determining governance practices. Board service should not be viewed as just an honor – the oversight responsibilities of directors are real, and failure to discharge these legal duties can have unwelcome consequences for the organization and its board members. The demands of not-for-profit board service can be heavy – board responsibilities are wide-ranging and board service is part-time (and usually voluntary). Adelphi Effective Governance Practices in A Non Profit Agency Memorandum The board of a not-for-profit organization should consider implementing board processes and structures that can assist directors to more efficiently and effectively fulfill these responsibilities; however, in doing so, the board should bear in mind that board practices should address the unique needs and circumstances of the particular not-for-profit organization – one size does not fit all. In addition to implementing any governance mechanisms that may be mandated by law, the board should look for governance “best practices” that embody pragmatic solutions that will work given the particular needs and circumstances of the organization, including organizational structure, size, activities, life-cycle stage and funding mechanisms. The goal of “best practice” is to promote active oversight and objective and informed judgment by the board. An effective board provides oversight over the activities of the managers and staff to whom the board has delegated authority. This is necessary to promote the accountable functioning of the organization, including the responsible use of assets that have been entrusted to the organization by others. Board effectiveness can be enhanced by considering the following guiding principles that are common to effective not-for-profit boards. *Adapted from the Guide to Nonprofit Governance, by the Not-For-Profit Practice Group and the Pro Bono Committee of Weil, Gosthal & Manges LLP (2019). BOARD CHAIR AND CHIEF EXECUTIVE RESPONSIBILITIES A strong partnership between the chief executive and board chair is essential to leading an effective organization. When the relationship goes awry, it’s often due to confusion over individual responsibilities. In general, the chief executive’s role is focused on management and working with staff to implement programs and initiatives in support of the mission. The board chair is responsible for governance and oversight, leading the board in evaluating the organization’s work from a macro-perspective and ensuring that the work advances the mission in an ethical and legal manner. But how do these general roles manifest in key responsibilities, such as fundraising or board meetings? Read on to find out. POLICY AND PLANNING Board Chair/Governance Shared Chief Executive/Management Develops and/or reviews guiding principles (mission, vision, values) and policies Strategic planning and program evaluation Commits to and carries out mission Provides administrative support for board policymaking Ensures effective planning, overseeing board involvement in development and approval of strategic plan Organizational growth and sustainability Mission impact Monitors organization’s programs and services in support of the mission and strategic plan Engages the board in planning Implements strategic plan Monitors the quality and effectiveness of individual programs, providing board with data and information needed to evaluate program effectiveness, impact, and outcomes BUDGET AND FINANCES Board Chair/Governance Shared Chief Executive/Management Ensures adequate financial resources; protects assets; provides financial oversight Fiscal stewardship Prepares and proposes budget to board Reviews and approves annual budget Manages programs according to board-adopted financial policies and budget guidelines Oversees annual audit process TEXT MAY NOT BE REPRODUCED WITHOUT WRITTEN PERMISSION.Adelphi Effective Governance Practices in A Non Profit Agency Memorandum 1 © 2017 BOARDSOURCE.ORG BOARD CHAIR AND CHIEF EXECUTIVE RESPONSIBILITIES FUNDRAISING AND DEVELOPMENT Board Chair/Governance Shared Chief Executive/Management Maximizes board member participation in resource development; oversees approval of fundraising plan Solicit contributions from outside donors Develops fundraising plan and coordinates overall fundraising efforts Attends fundraising events, cultivates donors, and makes a personal contribution Solicits contributions from board members Engage board members in fundraising activities Evaluate effectiveness of fundraising strategies Ensures staff support for board fundraising Updates board on development efforts BOARD MEETINGS Board Chair Shared Chief Executive Leads and facilitates board meetings Develop meeting agenda Ensures that board members have necessary information and meeting materials Attends meetings, except specific executive sessions COMMITTEE WORK Board Chair Shared Chief Executive Ensures that board has effective committee and task force structure Develop and review committee structure and individual committees to ensure alignment with mission and strategic goals Sits in on appropriate committee meetings as non-voting member Appoints board committee and task force chairs Serves as ex officio, non-voting member of all committees, except the governance committee when discussing elections Identify committee members Ensures that committee members have staff support and needed materials/information Keep board informed of committee and task force work TEXT MAY NOT BE REPRODUCED WITHOUT WRITTEN PERMISSION. 2 © 2017 BOARDSOURCE.ORG BOARD CHAIR AND CHIEF EXECUTIVE RESPONSIBILITIES BOARD RECRUITMENT AND DEVELOPMENT Board Chair Shared Chief Executive Ensures strategic board building and recruitment Identify skills, expertise, and attributes needed for the board Develops and sustains strong working relationships with board members Keep all board members engaged in the work of the organization Shares appropriate information to keep board informed and educated about ongoing organizational activities and changes in the field in which the organization works Sets goals and expectations for the board Cultivates leadership among individual board members Prioritizes board development, including orientation and educational sessions Identifies potential new board members and participates in orientation BOARD ASSESSMENT Board Chair Shared Chief Executive Ensures regular opportunities for assessment Evaluate assessment results and identify board development opportunities in collaboration with governance committee Assists board assessment process Oversees comprehensive board assessment every two years STAFF OVERSIGHT, COMPENSATION, EVALUATION Board Chair Shared Chief Executive Oversees hiring, compensation, and evaluation of chief executive Provide general oversight to ensure strong and effective staff resources Oversees and evaluates all staff Sets staff salaries within budget constraints Ensures chief executive succession plan exists TEXT MAY NOT BE REPRODUCED WITHOUT WRITTEN PERMISSION. 3 © 2017 BOARDSOURCE.ORG BOARD CHAIR AND CHIEF EXECUTIVE RESPONSIBILITIES PUBLIC RELATIONS AND COMMUNICATIONS Board Chair Shared Chief Executive Promotes the work of the organization and encourages board members to do so as well; advocates for the organization’s mission with public policy makers With full board and staff, develop message that conveys the organization’s mission effectively and can be used consistently by everyone within the organization Serves as public face and official spokesperson for the organization Speaks for the board when a controversy or crisis arises Public policy advocacy Coordinates public relations and communications and advocacy efforts RESOURCES Please note that this delineation of roles and responsibilities is recommended practice and may not apply to all organizations, including those small and new organizations without staff. TEXT MAY NOT BE REPRODUCED WITHOUT WRITTEN PERMISSION.Adelphi Effective Governance Practices in A Non Profit Agency Memorandum 4 © 2017 BOARDSOURCE.ORG THE CHIEF EXECUTIVE & PARTNERSHIP BOARD CHAIR The partnership of the board chair and chief executive provides a structure for accomplishing the tasks of the organization. Governance and management complement and support each other — together focused on mission through different perspectives and actions. The partnership itself is critical in providing a communications headquarter for sharing information, addressing issues, and planning next steps appropriate to the individual and collective responsibilities. BOARD CHAIR LEADERSHIP CHIEF EXECUTIVE LEADERSHIP TOGETHER No micro-managing No micro-governing Shared Tasks: Mutual respect, trust, & support Governance:¹ Determine mission & purpose Select the chief executive Support & evaluate the chief executive Reciprocal communications Shared purpose & mission-driven Context: for the good of the organization Ensure effective planning Monitor & strengthen programs and services Ensure adequate financial resources Protect assets & provide financial oversight Build a competent board Ensure legal & ethical integrity Enhance the organization’s public standing Board Development: Initiation • Orientation Sustainability • Preservation Shared Responsibilities: Social stewardship Fiscal stewardship Resource development Succession planning Strategic planning & program evaluation Shared Outcomes: Mission impact Organizational growth and sustainability Healthy, functional organization Change as a constant Management:² Commit to the mission Lead the staff & manage the organization Lead & manage fundraising Follow the highest ethical standards, ensure accountability, & comply with the law Engage the board in planning & lead implementation Develop future leadership Build external relationships & serve as an advocate Ensure the quality & effectiveness of programs Support the board Staff Development: Initiation • Orientation Sustainability • Preservation Workplace: Mission-driven focus on management tasks Staff focused on clients/customers High functioning staff focused on process, tasks, & outcomes Boardroom: Mission-driven focus on governance tasks Board focused on stakeholders High functioning board focused on process, tasks, & outcomes Source: Ten Basic Responsibilities of Nonprofit Boards Source: The Nonprofit Chief Executive’s Ten Basic Responsibilities 1 2 TEXT MAY NOT BE REPRODUCED WITHOUT WRITTEN PERMISSION. © 2017 BOARDSOURCE.ORG Board-Staff Boundaries and Dilemmas 1. Arturo M. is a retired social services executive who now serves on a social services board of directors. He has a lot of experience in the field and thinks the agency’s programs are not effective. He has asked the Board to appoint him as chair of a Program Committee that will meet with program staff to identify and correct the problems. Is this a proper exercise of board oversight responsibilities? 2. Sharon S. is on the board of a foster care services agency. Adelphi Effective Governance Practices in A Non Profit Agency Memorandum She was in foster care as a child and she wants to be helpful. She wants the CEO to allow her to do some counseling with the children in the agency’s care. What would you say if you were the CEO? What if you were the Bd chair? 3. Bill G. does not like to leave work early in order to get to the bi-monthly board meetings. He asks the Board if they will meet in the conference room of his office to spare himself the travel. He will happily arrange for his company to have sandwiches available for board dinner. The board agrees and the meeting notices now identify the location for the meetings as “Courtesy of the BILL G. COMPANY. Is this ok? What if Bill says he won’t come until the meetings are at his office? 1 4. Shaniqua L., owns a flower shop called Forever Blooms. She also serves on the board of an agency that is planning its annual gala. She asks the CEO if he will put her in charge of selecting the flower displays and arranging them at the Gala. Is that a conflict of interest? What if she won’t charge for her services, but will buy the flowers at her shop? What if she won’t charge for anything but wants the flowers on each table to have a colorful card that says “FLOWERS COURTESY OF “Forever Blooms”. 5. Mariama M is the Vice President of the Board of a large homeless services agency, which has been hunting for space for a new shelter for over a year. Mariama’s father-in law’s wife has an empty warehouse in a location that would be ideal for a shelter. She asks the board president to contact her father in law and try to work out a lease agreement for the space. Is that a Conflict of interest? What if it was her father-in-law’s former business partner? 6. Andres R. is in the running for a big job with a new company. He is on the board of a nonprofit that plans to hold its annual meeting at a restaurant. He recommends a restaurant owned by the company he hopes will hire him. Conflict of interest? What if Andres’ best friend owns the restaurant? What if he tells the owner of the restaurant that he is sending him some new business? 2 7. Dominick J. is the Treasurer of a nonprofit that provides after-school tutoring for public school neighborhood children. He has listened to the CEO’s budget reports at meetings, but he is uncomfortable with the documents the CEO provides. He suspects there may be either gross negligence, or heaven forbid, fraud. He has told the Board he wants to spend a couple of days at the agency looking at all the books and records in the finance department. Is that appropriate? 8. Two years ago, Bruce was promoted to CEO of a nonprofit agency after the prior CEO was terminated by the board. Bruce triggered that termination by having a confidential, private dinner with the Board chair, Josephine, alleging malfeasance by the then-CEO. Josephine investigated the allegations, found them substantiated, and on her recommendation, the board terminated the CEO and promoted Bruce to the job. Now Bruce is upset with Josephine because she wants to reduce some salaries due to deficits caused by Covid. Bruce held a confidential lunch with the Treasurer of the board to lobby against the cuts. Bruce also surprised Josephine at a recent board meeting by announcing – without ever discussing it with Josephine — that he and the Treasurer think the agency should purchase a new costly financial software system for the agency. How should Josephine handle this situation? November2020 3 … Purchase answer to see full attachment Get a 10 % discount on an order above $ 100 Use the following coupon code : NURSING10

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