Management is a term often associated with for-profit corporations. However, strong governance is also essential, along with good management, in nonprofit organizations. Are you taking steps to build a strong leadership foundation for your nonprofit?
What is Macro Governance?
Effective governance for a nonprofit organization means that decisions and policies are being enacted that carry out the organization’s strategic plan. Board leadership is responsible for moving the organization strategically toward larger goals.
Instead of being caught in the morass of micromanagement, a better strategy is to utilize macro governance. This process is focused on defining, deliberating and deciding matters that impact both the short- and long-term success of the organization. With the correct macro governing approach, the board can advance the organization’s mission much more effectively. The board of trustees/directors should have its own mission statement, describing its role.
Benefits of Strong Board Governance
Here are a few reasons why the effectiveness of your board governance is critical:
- Managing Costs: Ineffective management that is too focused on narrow accountability often drives up the costs without having a noticeable impact on the performance of the mission. You can avoid these problems with the right governance strategies.
- Compliance: Certain regulatory and legal provisions need to be considered. The board should always ensure that compliance is maintained in the organization.
- Increase Impact: An experienced board can inspire action, helping to improve overall performance that has a direct impact on successfully implementing the mission.
- Funding: If you want to bring in the funds that are necessary to keep your nonprofit running, you need to show donors that a strong board is governing the organization effectively.
- Fulfilling the Purpose: Ultimately, the goal of board members is to ensure the organization is fulfilling the purpose and mission. When board members are trained and experienced, you can have a strong impact on the community.
At Mirenda & Associates, we understand how critical the governance of your board is to the effectiveness of your nonprofit organization. Contact our team to learn more about the ways we can help you uncover the strategies that improve performance and build relationships with the right donors. We’ll support you in standing out in the industry by training the board to take the steps necessary in moving forward with your mission. Not only do we offer the training you need, but rest assured knowing that proven systems can be implemented to build strong leadership for your nonprofit.
