Good Governance: Like Creating a Great Recipe

Type:

Blog Post

Welcome to the first LWVSC Governance Matters Memo, a quarterly source of information designed to help local League leaders learn more about governance and how to understand the role that governance plays in helping a board do its work and do its work better. ~Dahlia Handman, Ph.D., Governance Director, League of Women Voters of South Carolina

According to the National Council Nonprofits, understanding good governance is like working on creating a great recipe.

It requires the “right ingredients” (the right mix of board members), a chef (League presidents or co-presidents) to provide leadership and accountability, and “careful mixing and stirring of candid discussions, transparent practices, and thoughtful governance policies.” Understanding the basics is the key to mastering this recipe! https://www.councilofnonprofits.org

While League Bylaws are critical (it’s our roadmap for how we organize ourselves) governance does not work in a vacuum; it involves a board operating in a constantly changing environment. That means:

Finding good, enthusiastic people with the skills needed for state and local LWV boards (I’m speaking to all of you!).
Conveying the legal side of board service and the expectations of all league board members.
Adding value to League boards by institutionalizing best board development practices.

What does that mean for local League leaders?

The same as it does for the leadership of the League of Women Voters of South Carolina! Finding great volunteers, helping everyone understand their opportunities and responsibilities, and establishing a board culture supporting good governance.

This quarterly column is designed to provide you with background information on the legal aspects of governance to share with board members, identifying tools and resources for helping recruit board members, templates for board “job” descriptions, useful ways to identify board gaps and member strengths, onboarding activities for new board members, developing strategic planning, help in evaluating how measure board effectiveness, bylaw reviews and most importantly, help answer any questions you may have. You can always reach me.

Not everyone is familiar with the roles and responsibilities of nonprofit board members! For new board members, this may be their first time serving on a nonprofit board.

ACTION: Take time early on in board meetings to help all board members learn about their role and grasp what makes a great board member.

Legal side of board service and expectations

As League leaders helping your board members to understand their roles not only involves the responsibilities of their position (such as Membership, Observer Corps, Voter Services, Education) but also to help board members understand their personal duty in establishing good governance as routine practice. Nonprofit standards are designed to ensure that board members act responsibly, ethically, and in the best interests of the nonprofit organization they serve.

Understanding responsibilities as a nonprofit board member—from a governance perspective—involves certain legal standards of Care, Loyalty, and Obedience.

Duty of Care: The judgment rule. The care that an ordinarily sensible person would exercise – simply it means board members need to participate and pay attention, ensuring the prudent use of all assets, including people, and good will.

ACTIONS: Reading materials, staying informed, fully participating in meetings, reviewing financial reports, asking questions, and using sound judgment in decisions. Coming to meetings prepared to engage thoughtfully and meaningfully.

Duty of Loyalty: Faithfulness to the organization, promoting its best interests and welfare. Ensure that league activities and transactions are, primarily, about advancing the mission

ACTIONS: Avoiding conflicts of interest, disclosing any potential conflicts, and ensuring transactions benefit the league. Not benefiting personally, financially, or professionally from the benefit of board decisions. Having a conflict-of-interest statement that all board members sign. Recusing oneself, if necessary, from votes.

Duty of Obedience: Supporting the organization in its mission and work. Ensure that the organization obeys applicable laws and regulations; follows its own bylaws; and that the nonprofit adheres to its stated LWVUS and LWVSC purposes/mission.

ACTIONS: Follow bylaws, state and federal laws governing the League. Upholding policies, and mission; ensuring compliance with fiscal/tax laws and other regulations. Review and update League Bylaws to conform with LWVUS and LWVSC requirements.