In the aftermath of every "nonprofit mismanagement" news story is the question: Why didn't the board do something? Yet the boards of the nonprofits recently headlined with scandals such as outlandish compensation for executive directors, the use of organizational funds for personal luxuries, or nepotism did not do any less than most nonprofit boards. The reality is that most nonprofit boards are ineffective in their governing function. Only when gross mismanagement is discovered does a failure at governance come to the fore. Sometimes the failure does not involve personal scandal but reveals organizational laxity, such as an organization using funds raised for one purpose for other program areas.
Nothing can dampen donors' interest more quickly than an organization that does not seem to be taking responsibility for itself -- and that responsibility lies in those who govern.
WHAT IS GOVERNANCE?
The two roles of support and governance encompass different tasks. In the role of supporters, board members seek to raise money, bring clout to the organization, provide special skills, such as in law or accounting, and act as ambassadors to the community. The many books and seminars on the subject testify to the emphasis on helping boards help -- on strengthening organizations by means of board assistance.
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