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63 posts categorized "Governance"

Weekend Link Roundup (August 15-16, 2015)

August 16, 2015

Julian-bond-1940-2015Our weekly roundup of noteworthy items from and about the social sector. For more links to great content from and about the social sector, follow us on Twitter at @pndblog....

Data

In the first Q&A for their new Community Insights series, the folks at Markets for Good speak with Andrew Means, co-founder of the Impact Lab and founder of Data Analysts for Social Good.

Giving

Good post by Beth Kanter on six fundraising platforms that have disrupted charitable giving forever.

In a review of Will MacAskill's Doing Good Better: How Effective Altruism Can Help You Make a Difference, Nonprofit Chronicles blogger Marc Gunther says that if "Effective Altruism catches on more widely – and that's a big if – it will disrupt traditional philanthropy, change the way individuals donate to charity and force nonprofits to get much better at measuring impact...."

Global Health

Think the world is getting worse? Max Roser and the folks at OurWorldinData.org have a dozen or so charts and tables that suggest otherwise.

The continent of Africa recently celebrated a year without a single recorded case of polio. On Slate, the Gates Foundation's Jay Wenger explains why that is cause for optimism but not complacency.

Governance

In an op-ed in the Chronicle of Philanthropy, Sonya Campion, a trustee of the Seattle-based Campion Foundation, argues that advocacy is a basic responsibility of all nonprofit boards.

Nonprofits

On the Social Velocity blog, the Packard Foundation's Kathy Reich, who usually doesn't agree with those who urge nonprofits to act more like for-profits, says there is one area where nonprofits lag their for-profit peers: talent assessment, development, and management.

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Most Popular PhilanTopic Posts (July 2015)

August 01, 2015

It was a typically hot and muggy July in most places, but here at PhilanTopic it was an especially cool month, with new posts from Sarah Gunther and Diana Samarasan related to the release of an updated Foundation Center report on funding for global human rights, three posts full of great fundraising and governance advice for nonprofit leaders, a new Q&A with Jean Case, and the latest installment in Matt Schwartz' Cause-Driven Design series topping the list of the most popular posts on the blog. What, you were on vacation? Don't sweat it. Here's your chance to catch up....

Read, watched, or listened to anything lately that surprised or made you think? Share your find with others in the comments section below, or drop us a line at mfn@foundationcenter.org.

Weekend Link Roundup (June 13-14, 2015)

June 14, 2015

Bigstock-graduation-cap-diplomaOur weekly roundup of noteworthy items from and about the social sector. For more links to great content from and about the social sector, follow us on Twitter at @pndblog....

Criminal Justice

On the BMAfunders.org site, Shawn Dove, CEO of the Campaign for Black Male Achievement, argues that mass incarceration of young men and boys of color "is a symptom of a larger disease that is prevalent both before and after arrest and imprisonment occur." 

Fundraising

A new report from Crain’s New York Business, in partnership with the Association of Fundraising Professionals, finds that 57 percent of respondents to a spring 2014 survey said they expected to raise more in 2014 than in 2013, while a majority — 52 percent (compared to 29 percent in 2013) — said their organizations planned to hire development staff in 2015 to take advantage of the more generous giving climate.

"Generation Z, the heirs to the digital empire built by Generation X and expanded by Millennials, is made up of people who don’t just spend time online — they live there," writes Beth Kanter on her blog. "And despite their youth... kids in Generation Z are regularly rocking social media for social good. Well-informed, constantly connected, and more tech-confident than your aunt Jan, they're taking on the world's problems, one online fundraiser at a time.

Governance

Where do nonprofit boards fall short? The Nonprofit Law Blog's Erin Bradrick shares some thoughts.

Impact/Effectiveness

On her Social Velocity blog, Nell Edgington chats with Mary Winkler, senior research associate with the Center on Nonprofits and Philanthropy at the Urban Institute, about measurement as a "necessary practice" for nonprofit organizations, the difference between measurement and evaluation, and the challenge inherent in finding funding for measurement work. 

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[Review] 'The Chocolate Trust: Deception, Indenture and Secrets at the $12 Billion Milton Hershey School'

June 02, 2015

Cover_the_chocolate_trustWould you be concerned if you knew there was a charity that served only a couple of thousand children each year even though its asset base was  the same size as the Ford Foundation's? Would you wonder what that charity, three times the size of the largest U.S. community foundation, did with the money it accumulates and doesn't spend each year? Would you wonder who benefits from it? 

Bob Fernandez, a reporter for The Philadelphia Inquirer, wondered all that and more about the $12 billion Hershey School and decided to do some digging. The result is The Chocolate Trust (Camino Books, 256 pages; $24.95/paper, $9.99/ebook).

The book is important not simply for what it reveals about the trust, about those who have profited from its sometimes questionable practices over decades, and about the kids who have been neglected as a result of those practices. The Chocolate Trust also is a cautionary tale for anyone who thinks nonprofits can self-regulate or rely on local and state government authorities who too often are ethically compromised and politically constrained to keep them on the straight and narrow. 

First, a little history. In 1909, Milton Hershey, who had started a chocolate company and set out to build a town for its workers, established the nonprofit Hershey Industrial School, a residential facility to serve young, fatherless, white boys. In 1918, a few years after Hershey's wife, Kitty, died – they never had children and had no heirs – Hershey transferred his land and other assets to his "orphanage," making it a very wealthy entity indeed.

Hershey stipulated that those assets were to be managed by the Hershey Trust, part of a for-profit bank, and he retained a significant measure of control over the school's operations by reserving to the bank the right to appoint its board members. In simple terms, the bank controlled the school's assets and operations, and Hershey owned the bank – the reverse of standard operating procedure in the charity world, where donated assets typically are controlled by the charity to which they have been donated. 

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True Board Engagement: How Openness and Access to Board Conversations Has Changed 'Creating the Future'

May 06, 2015

Wilding_pollock_150x350It's a widely held maxim that sunlight, read as transparency and openness for the purpose of this post, is the best disinfectant. While true, we feel this view has an unfortunate undertone of emphasizing the negative: greater transparency is needed in order to prevent and/or catch wrongdoing. It focuses attention on what we hope to avoid rather than what we hope is possible.

At Creating the Future, rather than thinking of sunlight as that thing that disinfects, we embrace the photosynthetic view that letting the light in allows for growth and transformation. We recognize our role in supporting thriving communities and believe that the community should have a role in creating our success at all levels of the organization. Though Creating the Future is not a grantmaking foundation, we believe that all organizations, including foundations, gain by opening up to and actively engaging the communities we are passionate about and that we profess to serve.

In a conversation about boards and governance recently, someone remarked to one of us that "transparency can be transformational," and it's this sort of thinking that powers Creating the Future's approach to leadership, trusteeship, and governance. Beyond just being transparent – allowing people to see us and see that we are "open" – people can actually interact with us and influence our growth in real time. This approach to governance is open not just in the sense of visibility, but open to challenge, praise, and, since board members livestream from various places around the world, the occasional ribbing for the state of our living rooms and barking dogs. (How much more "real life" can it get than that?)

All well and good in theory. But what does this really look like in practice and what does it make possible for us as trustees and anyone else interested in the work of the organization we serve?

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Weekend Link Roundup (April 11-12, 2015)

April 12, 2015

Lincoln_shotOur weekly roundup of noteworthy items from and about the social sectorFor more links to great content from and about the social sector, follow us on Twitter at @pndblog....

Corporate Philanthropy

Indiana Business Journal reporter J.K. Wall looks at how Eli Lilly & Co. is shifting its corporate philanthropy from an approach focused on social responsibility to one that emphasizes "shared value."

Fundraising

In a post for the Evelyn & Walter Haas Jr. Fund, writer and consultant Cynthia Gibson asks whether organizations that work to foster a "culture of philanthropy," a mindset in which "fundraising is seen less as a transactional tactic and more of a way of operating," are more likely "to boost their giving levels and donor retention; strengthen trust, cooperation and engagement among board and staff members; and align mission and program goals more seamlessly with revenue generation." What do you think? Click on over to the Haas Fund site to share your thoughts.

Governance

Long admired for its no-tuition policy, Cooper Union for the Advancement of Science and Art in Manhattan began in 2014 to assess incoming freshman a tuition fee of $20,000 — a decision that led to student protests and media scrutiny of the school's financial dealings. Earlier this week, New York State Attorney General Eric T. Schneiderman launched an investigation of focused on the Cooper Union board's "management of the school's endowment; its handling of its major asset, the iconic Chrysler Building; its dealings with Tishman Speyer Properties, which manages the skyscraper; and how the school obtained a $175 million loan from MetLife using the building as collateral." New York Times writer James B. Stewart reports.

Human/Civil Rights

On the D5 Coalition blog, Ben Francisco Maulbeck, president of Funders for LGBTQ Issues, shares some thoughts about what foundations can do to support LGBT communities in the wake of the "religious freedom" bill signed into law by Indiana governor Mike Pence.

International Affairs/Development

On the Global Dashboard blog, policy analyst and researcher David Steven looks at five ways co-facilitators have made the targets for the post-2015 Sustainable Development Goals worse.

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Weekend Link Roundup (March 7-8, 2015)

March 08, 2015

Daylight-Saving-TimeOur weekly roundup of noteworthy items from and about the social sectorFor more links to great content from and about the social sector, follow us on Twitter at @pndblog....

Criminal Justice

"For years, punitive policies...have conspired to reinforce injustice and inequality [in America]. Together, they have produced an overrepresentation of people of color in our prisons and jails. Today, more African Americans are part of the criminal justice system than were enslaved on the eve of the Civil War," writes Ford Foundation president Darren Walker in an op-ed in the Sacramento Bee. Walker goes on to mention some of the things Ford is doing to bring change to the criminal justice system and urges policy makers and his colleagues in philanthropy to do more to address the root causes and systemic issues that contribute to the shameful pattern of mass incarceration in the U.S.

Education

In the Washington Post, Lyndsey Layton reports that New Jersey governor Chris Christie's plan to remake the Newark public school system with the help of a $100 million investment from Facebook co-founder Mark Zuckerberg has run aground.

Fundraising

In a post on LinkedIn, Wounded Warrior Project CEO Steve Nardizzi applauds the Humane Society of the United States'  suit against Oklahoma attorney general Scott Pruitt, who, according to Nardizzi, "has waged a public war against the HSUS, accusing the organization of exorbitant fundraising costs for misleading solicitations and untruthful advertisements."

On the other hand...a new report (“Pennies for Charity”) shows that for-profit telemarketers operating in New York in 2013 retained the majority of the funds they raised on behalf of charities.

Governance

Writing in the Stanford Social Innovation Review, Jim Thaden, executive director of the Central Asia Institute, offers a staunch defense of the organization's decision not to fire co-founder Greg Mortenson after a 60 Minutes segment in 2011 questioned  many of the "facts" in Mortenson's best-selling 2006 memoir Three Cups of Tea and raised questions about the organization's finances.

Impact/Effectiveness

"Impact investing advocates can sometimes give the impression that they have 'outsmarted poverty' (and other societal problems)," writes Alex Counts, president and CEO of the Grameen Foundation, on the Center for Financial Inclusion blog. But "[i]t is important to remember that few if any social innovations besides microfinance have proven capable of reaching large scale and generating consistent profits – which should give people pause before they create a new impact investing 'bubble'."

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Most Popular PhilanTopic Posts (February 2015)

March 04, 2015

For those of us who live and work in the Northeast, it was cold, really cold, in February. Fortunately, we were too busy serving up great content here on PhilanTopic to notice. So, while you wait for the next winter storm to roll in, pull up a screen and see what you missed....

What have you read/watched/listened to lately that made you think? Share your finds in the comments section below, or drop us a line at mfn@foundationcenter.org.

Nonprofit CEOs Should Be Voting Board Members

March 02, 2015

BoardSource’s Governance Index for 2014 found that only 12 percent of nonprofit boards utilize their CEO/executive director as a voting board member. That caused me to wonder why the other 88 percent of nonprofits still embrace old-school management practices. If nonprofits want to be treated with the respect they deserve and hope to achieve their full potential, the non-voting CEO is an antiquated idea that should be jettisoned.

There are some who’ll argue that including the CEO as a voting board member compromises a board’s ability to provide impartial oversight and governance. That’s a straw man argument. How often are for-profit CEOs who are voting members of the board removed as CEO? Exactly. A voting CEO only has one vote, and if he or she fails to deliver on expectations...well, they usually end up looking for a new job.

There are many reasons why it makes sense for a CEO to be a voting member of the board. Here are a few:

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A Two-Step Exercise for Designing Your Best Board

February 23, 2015

Board-puzzle-piecesTry this exercise: Gather your board members around a white board or flip chart and ask the following question:

"If we could design the perfect board for our organization, what skills and qualities would we look for in prospective board members?"

Skills would include program knowledge and specific expertise in areas such as  marketing, fundraising, consensus-building, finance/accounting, legal, and so on.

Qualities would cover more intangible – but no less important – factors such as firsthand knowledge of the organization, sense of humor, ability to function as a member of a team, listening skills, experience on other boards, and diversity profile (i.e., race, gender, age, socioeconomic status, and sexual orientation.)

Of course, one of the most important criterion for a board member is passion for and commitment to the organization’s mission.

Brainstorm your list with the full board. Think as broadly as possible. With a bit of effort, most groups can generate twenty-five to thirty characteristics they would love to incorporate into their ideal board.

After you've created the list, you'll want to ask: How does our current board compare to our ideal? What key skills and qualities are already represented on the board? Where do we need help? And how do we recruit a different mix of board members to fill the gaps we've identified?

Next, review the list with key staff and board members and assign a collective grade to each item.

You can also use this exercise as a self-evaluation tool. Ask each board member to rate himself or herself against the criteria on the list, using the same scoring system. Doing so will help your board members think more creatively about what they bring (or don't bring) to the table, and will provide them with an opportunity to work with – or remove the less effective members of your board.

Andy Robinson is a Vermont-based trainer, consultant, and author. To hear more tips and techniques for building a better board, register for Andy's webinar series, "Build Your Best Board," March 4, 11, and 18, from 1:00-2:30 p.m. ET.

Nonprofits Are Not Doing Enough to Help Young Men of Color

January 27, 2015

Headshot_lowell_perryWith the recent grand-jury decisions not to indict the police officers responsible for the deaths of Michael Brown and Eric Garner, protests over the racial profiling of youth of color and the excessive use of force by individual members of police forces across the country have made the national news. Many of the demonstrations have been led by young people, of every color and stripe.

Meanwhile, the White House, which last year launched the My Brother's Keeper initiative to address the fact that too many young men of color are failing to reach their full potential, continues to work with concerned leaders to develop a comprehensive solution to the problem.

More can and must be done.

Unfortunately, the Obama administration's decision to provide funding for fifty thousand body cameras as well as additional training for police officers, at an estimated cost of more than $250 million, is not the kind of "solution" we need. In a world in which public-sector money to address social problems is scarce, do we really want to spend tens, if not hundreds, of millions of dollars on equipment to record interactions — the vast majority of them uneventful — between police officers and the public they are hired to serve and protect? Wouldn't that money be better spent on interventions designed to help boys and young men of color long before they come to the attention of local law enforcement?

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Beyond the Kitchen Table: The Board’s Evolving Role

January 22, 2015

Many organizations begin as "kitchen table" groups: a bunch of neighbors sitting around somebody's kitchen, trying to solve a common problem or meet a community need. These folks share a passion for the cause and a willingness to roll up their sleeves and do the work.

They're seldom skilled in nonprofit governance, and, frankly, they don't even think about that stuff. They just want to fix what needs to be fixed.

Sometimes these informal groups continue for years or decades without growing or changing significantly, and their familiar leadership structure continues to serve them well. For example, I belong to an all-volunteer organization that has had no staff for most of the past seventy-five years – and yet the work gets done.

Taking "The Leap"

In other cases, these groups want to expand their impact, so they decide to hire employees and open an office. My colleagues at the Institute for Conservation Leadership call this stage "the leap," and it's filled with peril. Organizations hiring staff for the first time must address issues such as:

  • Now that we have an employee(s), how does our role as a board change?
  • How do we provide supervision without micro-managing?
  • How will we ensure that our staff has adequate resources to do the job well?
  • How do we evaluate our programs, our staff, and each other?

At this stage, other problems may surface. Board members who originally got involved with the organization because they care about the issue or cause are suddenly responsible for personnel policies, staff supervision, a more detailed level of planning, and greater responsibility for fundraising.

Illus_board_schematic
"Four Stages of Organizational Development" adapted, with permission, from the Institute for Conservation Leadership.

The visionary leader(s) who founded the organization may be unwilling to share power with the staff, which can lead to conflict, confusion about roles, and employee turnover. Or maybe the board breathes a collective sigh of relief, backs away, and abandons its responsibilities, assuming the employee(s) will do everything.

As you can see, the skills needed to start a group are not the same ones needed to take it to the next level of effectiveness.

The Sweet Spot: Moving to Shared Governance

As a nonprofit continues to grow, expand its programs, and hires more staff, the board's role continues to change. Because organizations become more complex, board governance also becomes more complicated.

In the next phase, sometimes called "shared governance," board and staff share power and responsibility, are clear about their respective roles, and have systems in place to create orderly transitions as people leave and new ones come in.

At this stage, the board has explicit written agreements that define what is expected of each trustee and what he or she can expect in return. These groups have a culture of accountability and mutual respect; they also have fun together and celebrate their shared accomplishments.

Clearly, board requirements and behavior must evolve as organizations develop and change. The board you need when starting something is not necessarily the same board you'll need to grow it to maturity.

So if somebody tries to convince you there is only one correct model of board governance, beware! No single "right way" will be relevant to all nonprofits, or even to a specific organization at different stages in its life.

Headshot_andy_robinsonTo learn more about how to develop and maintain an effective board at every stage of your organization’s life cycle, join me on Thursday, January 29, from 1:00-2:00 p.m. for the Foundation Center webinar Building a Board That Works. I'll share tips for recruiting the right mix of board members for your nonprofit, ensuring that they fundraise successfully, and keeping them motivated and accountable.

Andy Robinson, a consultant and trainer based in Vermont, is the author of six books, including Train Your Board (and Everyone Else) to Raise Money. This post originally appeared on the Philanthropy Front and Center-New York blog and is adapted from Great Boards for Small Groups (Medfield, MA: Emerson & Church).

Most Popular PhilanTopic Posts (May 2014)

June 01, 2014

It was a rough month for Typepad, the blogging service/platform used by tens of thousand of blogs, including PhilanTopic. On two separate occasions during the month, the platform was subjected to significant DDoS (distributed denial-of-service) attacks that knocked it completely offline. In fact, we were down for the better part of six days. Despite the inconvenience, it was a busy month here, as some of our favorite contributors -- Allison Shirk, Derrick Feldmann, and Foundation Center president Brad Smith -- checked in with popular posts. Here's another chance to catch up on some of the things you may have missed....

What have you read/watched/listened to over the last month that made you think, surprised you, or caused you to scratch your head? Share your finds in the comments section below....

Taking Board Leadership From Good to Great

May 14, 2014

Headshot_kevin_monroeI'm a consultant who spends a lot of time working with nonprofit boards,
and as I ponder the experiences and effectiveness of many of those boards, I can't help but notice the gap that exists between their promise and actual performance. In fact, it brings an old song to mind...

You may say I'm a dreamer,
But I'm not the only one.
I hope someday you'll join us,
And the sector will grow as one.

Okay. I took some liberties with the lyrics. But since this is about board leadership, I thought you'd catch my drift and forgive me.

I'm in this line of work because, as the song goes, I'm a dreamer at heart and truly believe in optimal scenarios, especially as it relates to the millions of do-good organizations around the world and the people who lead them every day.

Imagine how different things would be in communities across the U.S. and around the world if every board member that served a nonprofit or NGO vowed to invest only their best into the organizations they lead and serve. They would read the financials and the body language of frustrated employees. They would hold executive leadership accountable in the boardroom – and in high regard outside it. They would balance criticism with encouragement. There would be fewer dictates and more discussion. Instead of being evaluative of goals, they would be evangelical about missions. What if breaking even and taking chances were equally rewarded? What would happen then?

Imagine.

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[Review] 'Abusing Donor Intent: The Robertson Family's Epic Lawsuit Against Princeton University'

April 16, 2014

(The newest book by Doug White, a well-known expert in the fields of philanthropy and nonprofit management, is "equal parts thriller and cautionary tale," writes Daniel Matz, Foundation Web Manager at the Foundation Center. Click here for more from PND's long-running Off the Shelf series.)

What is a gift? In an ordinary sense, a gift is something — money, property, advice — given freely by one party to another without the expectation of receiving something in return. We all like gifts, and so, too, do the 1.4 million nonprofits in the United States that benefit from private donations, large and small. But in the calculus of large-scale institutional philanthropy, a gift isn't really a gift; it's a gesture with a purpose — a purpose informed, to varying degrees, by the intent of the person or institution that gave the gift. And therein, as Shakespeare might say, lies the rub.

Cover_abusing_donor_intentIt's no surprise that wealthy donors and foundations seek out organizations and institutions that share their own passions and interests. But what do donors really expect from a nonprofit grantee in the long run? In the performance-measured, accountability-driven world of twenty-first century philanthropy, grantee reporting is de rigueur. For most nonprofits chasing after scarce dollars (and hoping for future gifts), the willingness and ability to demonstrate that they've aligned themselves with a donor's intent goes without saying. But what happens when a donor, after many years of happy engagement with an organization or institution, begins to believe that the original intent of the gift is no longer being honored? Our intuition tells us that, at some level, gifts/grants/donations involve a leap of faith, and that when the trust between donor and recipient is compromised, the recipient is unlikely to receive additional future gifts from that donor. A donor or foundation might even go public with its disappointment in order to discourage others from making gifts to the recipient. But rarely does a foundation or donor who has become disenchanted with a recipient ask for their money back. Which raises the question: Should they be able to? And does a statute of imitations ever apply in such a situation?

Those are two of the questions Doug White, a well-known expert in the fields of philanthropy and nonprofit management, tackles in Abusing Donor Intent: The Robertson Family's Epic Lawsuit Against Princeton University. Just as White earlier explored a rogues' gallery of swindlers and incompetent trustees in Charity on Trial, here he invites the reader to look behind the curtain of privilege and wealth, this time to learn just how bad things can get when a donor and beneficiary no longer see eye-to-eye. Informed by the slow burn of a decades-old frustration, not to mention the disposition of hundreds of millions of dollars and the reputation of one of America's oldest and most respected universities, Abusing Donor Intent is equal parts thriller and cautionary tale.

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