The previous issues of the Board Development Toolkit focused on several practical areas of board leadership and governance including the why, what, who, and how of board governance, as well as recommendations and resources. This issue takes a different approach and addresses several recommended policies that help you establish best practices or legal compliance for your board. This article does not constitute legal advice. The provided samples are examples of policies your board may wish to formalize if these policies are not currently in place for your organization. You may wish to consult with a local attorney to ensure the policies you develop and adopt are well-suited to your CMFI.

As a CMFI, you desire to rally a group of people that seek each other out and unite around the idea of building strong marriages and families that result in strengthening the fabric of your community. For those that have legally formed as a nonprofit organization, one structure for doing this is the board of directors. In past issues we examined why board governance is important, what is included in board governance, and who do you need serving on your board. In this issue we focus our attention on how boards accomplish their work and advance their missions.

Getting the right people on your board is essential to the long-term success of your organization. Developing a structured process for finding the right people, creating a proper understanding of their roles and responsibilities, and getting them off to a good start as board members will help.

There’s no one right way to structure the governing board of your CMFI -- however there are some wrong ways (perhaps we should say less desirable ways). As you formalize the Board let’s look at a few key structural issues to consider.

As with board structure, there’s no prescription for who should be on your board or what mandatory skill sets every board should include. However it is advisable that you develop some type of structured approach that guides the selection of a board that is rich in diversity. This diversity certainly includes age, sex, and ethnicity, but goes far beyond mere physical traits. You should identify what specific challenges your organization will face in the next 6 - 24 months. From there, you can consider the skills, talents, and abilities that will help your organization have wise counsel as you deliberate the best decisions for your CMFI.

“Good governance is the promise to the community that the non-profit is being well-run and that its human and financial resources are being stewarded well.  It validates that the mission of the organization is sound and that the organization’s programs and activities support that mission.  Good governance helps attract community support and assures quality programming.” This quote from Mary Pat Crouch, Vice President with Coxe Curry & Associates, is extremely enlightening. It’s easy to focus on the tasks of the Board and miss the real essence of what governance is and does. Let’s unpack this statement more and specifically apply it to CMFIs.

If you’ve been around a variety of nonprofit organizations you’ve probably noticed vast differences in how boards are organized and structured. While there are many wrong ways to approach governance, there is no one right structure or model of board governance for your organization. As a matter of fact, the need for governance will evolve as your organization grows, matures and progresses through its lifecycle.

In most cases, boards of the CMFI organizations are working boards and, as such, board members frequently find themselves wearing different hats as they serve various roles for the organization. These roles are distinct and never does a board member wear any two hats at the same time. Let’s look at a few of those hats and roles and see what it means for board members and the Board as a whole.

According to management guru Peter Drucker the most important question every organization must ask and answer is What is Our Mission? This question comes first in his classic book, The Five Most Important Questions and Drucker’s insights applied to all organizations -- not just nonprofits. However, I suggest this question is paramount for nonprofit organizations since their primary purpose is mission fulfillment.

Numerous books explore the issue of why governance matters and why good governance is important for all nonprofit organizations. However I believe many organizational leaders can label the textbook answers as academic or theoretical and not really relevant to our work. Recently I had the opportunity to approach a select group of leaders in the Atlanta philanthropic community and posed this question to them, “Why is good governance important?” These leaders represent various the foundation and funding world in various capacities.

Here’s a lighter look at 10 reasons why your organization needs a great board. There’s a lot of truth contained in this list.