Published by:
Harvard Business Publishing
Length: 9 pages
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Abstract
More than ever, the public is looking to the nonprofit sector to address the pressing social problems that are hobbling the United States. As a result, all nonprofits face increased scrutiny from both benefactors and government regulators. To survive under this spotlight, a nonprofit needs a powerful and proactive board of directors to provide oversight. The board must assume the roles played in a business by owners and the market, ensuring that the nonprofit accomplishes its mission efficiently and devising its own system of measurement and control. Four questions help board members create such a system: 1) Are the organization''s goals consistent with its financial resources? 2) Is the organization practicing intergenerational equity? 3) Are the sources and uses of funds appropriately matched? 4) Is the organization sustainable?
About
Abstract
More than ever, the public is looking to the nonprofit sector to address the pressing social problems that are hobbling the United States. As a result, all nonprofits face increased scrutiny from both benefactors and government regulators. To survive under this spotlight, a nonprofit needs a powerful and proactive board of directors to provide oversight. The board must assume the roles played in a business by owners and the market, ensuring that the nonprofit accomplishes its mission efficiently and devising its own system of measurement and control. Four questions help board members create such a system: 1) Are the organization''s goals consistent with its financial resources? 2) Is the organization practicing intergenerational equity? 3) Are the sources and uses of funds appropriately matched? 4) Is the organization sustainable?