
This chart–adapted by Ralph Enlow based on Chait, Ryan, and Taylor’s highly instructive conceptual framework–illustrates and summarizes three key aspects of governance: fiduciary, strategic, and generative.
Why do colleges have boards of trustees? Where did they come from? What is the difference between for-profit boards and non-profit boards? What is meant by “shared governance?” What should boards of trustees in colleges and universities be doing to improve their processes and procedures? What are the qualifications that people should possess to serve on college boards? These and other issues are discussed in the article on governance in institutions of higher education.
Governance is governance. That’s more than a title—it’s a deeply held conviction. It’s a conviction first of all that governance is not management and, second, that governance in the not-for-profit sector is absolutely identical to governance in the for-profit sector—with that one added dimension that I will come back to. I want now to discuss what governance or trusteeship (I use the two terms completely interchangeably) is and what it is not. First, what it is not. Governance is not management. In my opinion, one of the worst sins of charitable organizations is that too often they do not distinguish between the two. Rather, they confuse the two responsibilities and in the process hamper the mission of the institution.
One of the most significant influences on institutional and leadership effectiveness for faith-based nonprofit organizations is the role and function of the group charged with its legal oversight – the governing Board. When mission drift, operational dysfunctions, financial exigency or other crises occur, it is not unusual to find the root causes in the lack of clarity regarding policies, practices and procedures that guide the Board’s oversight of mission and personnel.
As the leading organization focused on strengthening and supporting nonprofit board leadership, BoardSource has been tracking and analyzing trends in nonprofit board leadership since we launched our first national study in 1994. Leading with Intent: 2017 National Index of Nonprofit Board Practices is the most recent in this series of studies.