1. The Challenges of the Nonprofit
es
or.org.e
Boards
cersecto
Pau Vidal
P Vid l
ww.terc
9th July 2010
ISTR – 9th International Conference
ww

2. Index of contents
1. About the research
Origin
Aim and Methodology
gy
Universe and sample
2. The challenges of the nonprofit boards in NPOs
The organizational commitment.
The functional strategy.
The relationship with the directive team
team.
The diversity of the profiles.
The renewal of the board.
The
Th management of information.
t fi f ti
The culture of transparency and accountability.
The culture of evaluation.
2

3. Observatorio del Tercer Sector
Observatorio del Tercer Sector is an independent and
nonprofit research center specialized in the third sector. Its
aim i to deepen and i
i is d d increase the knowledge on the sector
h k l d h
and to work for the improvement of the nonprofit
organizations’ management.
Web: http://www observatoritercersector org
http://www.observatoritercersector.org
E-mail: observatori@observatoriotercersector.org
3

4. Observatorio del Tercer Sector (II)
The Values of the organization
Social Transformation. We work for the strengthen of the sector, as we believe it is
an active agent for social change.
Engagement. We work together with the third sector, within the sector, with the
participation and conformity of its organizations.
Independence. Independent in order to guarantee quality and opinion.
Quality. We work hard to achieve the maximum professional competence, offering
useful results with quality.
Learning. We are an organization that learns from its own experience.
Trust. We assume a commitment with collaboration and knowledge sharing.
Transparency. We are open with regard to information and communication about the
organization.
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5. 1. About the research
Research
Aim and Universe and
Origin
Methodology sample
5

6. Origin of the research
The proper operation of the boards is a key aspect for
the development of the NPOs’ missions and values, the
p p
proper functioning and the accountability
g y
Still, in many organizations, the management of the
board has not been prioritized due to the pressure of
the management of activities
It is not sufficient only to show that things are
progressing accurately and at a high quality level, but
rather it is necessary that the activities are carried out
in accordance with the values and mission of the entity
6

7. Aim and Methodology
The main objective of the investigation is to understand the
situation of the boards and promote solutions to improve their
operation.
Analysis of with the purpose of identifying the different typologies of NPOs
the universe and the key informants to interview, the research used
secondary data sources and direct information from entities
Research of an international search was performed of current publications
international related to experiences of the operation of the boards in different
referents countries
18 key informants who are part of a total of 31 NPOs were
interviewed. The interviewees are people who participate in the
Interviews board of NPOs with different roles. Some of the interviewees are
directors and leaders in different institutions simultaneously
Analysis and
from the interviews and a group of people related to the world
elaboration of
of the non profit organizations, solutions for improving the
non-profit organizations
improvement
management of the boards have been created
proposals
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8. Universe and Sample
p
Characteristics
Typology of NPOs of the NPOs of Excluded NPOs
the analysis
-Passive patrimonial
p -NPOs that have their -Religious
g
organizations origin as an association -Patrimonial familial
(donors) -Entrepreneurial NPOs -Singular entities
-Active patrimonial -NPOs that are welfare -Instrumental juridical
organizations projects by savings formula
(mixed) banks -State NPOs
-Operative -Diversity in the
dimension of NPOs
-Origin of the funds
-Composition of the
boards
-Territorial area
Territorial
-Sectorial area
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9. 2. The challenges of the boards in NPOs
g
Interviews
Identification of
Challenges
1.
1 The organizational commitment.
commitment
Promotion of 2. The functional strategy.
3. The relationship with the directive
team.
4. The diversity of the profiles.
h d f h fl
5. The renewal of the board.
Reflection
6. The management of information.
7. The culture of transparency and
accountability.
Proposals of 8. The culture of evaluation.
improvement
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10. The organizational commitment
g
-Clarify and specify the responsibilities of the boards, such as governance
-Distinguish the roles of the governance board and the advising board
-Make decisions based on a broad organizational knowledge
M k d i i b d b d i i lk l d
-Extend the linking of the boards beyond the attendance to one or two
meetings a year
-Find spaces for the members of the boards for knowing the task of the entity
Find
and the social base as well as to participate within the organization
Proposals
-Creating a document clarifying the expectations and responsibilities of the
role of the members of the board.
l f th b f th b d
-Making personalised meetings to clarify the expectations of each member.
-Identifying the agenda of the organisation so to know when it is necessary to
invite the board.
-Facilitating the knowledge amongst the board, the remunerated staff, the
voluntary workers and the beneficiary persons.
-Creating the figure of a person in the board dedicated to the other members
and to manage the dynamic within them.
dt th d i ithi th
-Creating commissions for subjects: economic, strategic, financial...
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11. The functional strategy
gy
-Differentiate between the functional strategy and the functional operation
-Define the issues in which the board has to intervene
Define
-Make sure the board is in the most strategic subjects of the entity to draw
up the general policies
-Develop mechanisms to evaluate and monitor most of the operating tasks
-Focus on both the everyday life and the future of the organization through
processes of reflection and strategic planning
Proposals
-Making the strategic planning of the entity and its periodic revision
Making revision.
-Establishing strategic indicators.
-Clarifying which subjects ought to be discussed amongst the board and
which ones are competence of the directive team.
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12. The relationship with the directive team
p
-Establish good relationships between the board and the directive team
-Constitute relationships between the board and the directive team based on
Constitute
trust
-Exert a certain degree of taxation of the work of the directive team
-Clarify who exerts the leadership of the organization to head together to the
entity’s goals
-Institute a strong linkage between the president and the director
-Understand the expectations that rely on the president and the director
-Use tools of transparency and efficiency toguarantee the continuity of the
Use
bond of trust between the two
Proposals
-Establishing an open, fluent and transparent relationship.
Establishing open relationship
-Making possible the participation in the board of members of the directive
team depending on the subjects.
-Making evaluations of the directive team, the board alone.
-Making joint evaluations of the board and the relationship with the directive
team.
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13. The diversity of profiles
y p
-Increase the diversity of profiles within the boards
-Increase the presence of women immigrants, youngsters, etc. within the
Increase women, immigrants youngsters etc
boards
-Facilitate the representation of the diversity of the social base, specially the
beneficiary people
-Enrich the visions of the board and the governance by diversifying the
profiles
-Be aware of the moment of the organization and the type of profiles that the
situation requires
-Understand and reflect the plurality of society
Proposals
-Thinking of the beneficiary collectives of the organisation to incorporate
related persons
persons.
-Making a conscious effort to balance the issue of gender.
-Thinking to incorporate different profiles regarding age, vital trajectories,
origin... that can be complementary of the current composition of the board.
-Analysing the knowledge and skills of the current members to see which
profiles are needed to incorporate.
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14. The renewal of the board
-Establish mechanisms to guarantee non-traumatic relays
-Understand the necessity of generational renewals
Understand
-Create criteria of renewal besides the low degree of attendance to the
meetings
-Avoid perpetuation in the boards, specially in leadership positions, where it
becomes more difficult to find relay
Proposals
-Creating a commission of the board to think strategies and to attract new
Creating
members.
-Establishing closed periods of participation in the board.
-Thinking which profiles are needed for a renewal of the board.
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15. The management of information
g
-Achieve the equilibrium between briefing and quality
-Avoid confusion with far too much information
Avoid
-Select the information that ought to be generated and distributed within
specific members of the board
-Use of new technologies for information and communication
-Understand that the right information is crucial to make right decisions
Proposals
-Making more than 2 meetings per year
Making year.
-Creating commissions for concrete subjects.
-Sharing information before to the meetings.
-Using the new technologies.
-Thinking specific products of communication for the board.
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16. The culture of transparency & accountability
-Generate public trust through explaining the activities realized
-Be transparent in front of society
-Render accounts in front of society
-Make an organizational value out of the culture of transparency
-Understand the added value that constitute transparency and accountability
-Include the culture of transparency and accountability in all the processes
Proposals
-Identifying the different collectives involved in the organization for rendering
Identifying
accounts.
-Involving the board and the team in everything regarding the matter of
transparency.
-Describing the different channels in order to create public awareness of the
organization and how to improve the information and its transparency.
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17. The culture of evaluation
-Include the culture of evaluation within all the processes, specially within
those related to the operation of the boards
-Develop tools to evaluate the boards
-Take into account the evaluation of all of the social base involved in the
functioning of the entity, including technical teams, members of the directive
team, etc.
-Introduce the idea of self-evaluation within the boards
Proposals
-Making meetings of evaluation of the board on a periodical basis
Making basis.
-Establishing functional indicators of the board.
-Picking up the vision of the ones involved on the organization in relation with
the board.
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18. The Challenges of the Nonprofit
es
or.org.e
Boards
cersecto
Pau Vidal
au da
ww.terc
9th July 2010
ISTR – 9th International Conference
ww