Nonprofit governance is gaining a lot of attention these days. One reason is the cloud of uncertainty that goes along with economic conditions, political evolution and market challenges. Another issue is the desire for greater board effectiveness by nonprofit stakeholders, consistent with concerns of corporate board governance.

Research on board strategy and leadership points to at least five areas of board engagement that are especially essential for nonprofits:

1.   Foresight and Understanding –

The context for meaning and decision making.

2.   Organizational Perspectives –

The resources, culture, process considerations.

3.   Construction of Strategy –

The elements of direction, integration and execution.

4.   Focus on Cause-and-Effect –

The measures of intent, activity and impact.

5.   Board Thought and Behavior –

The interaction of people, ideas, systems and value.

Boards are accountable for management guidance, general compliance and mission discernment. They are also accountable for the evolution of the nonprofit organization, taking care of the near-term and getting ready for the long-term. The competencies of individual board members and the collaboration of board members and management provide the crucible for strategic leadership at the governance level.

From: Dewar Sloan Working Paper on Strategy and Nonprofit Boards

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