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Nonprofit Organizational Assessment Tool
Board Governance
by: Andrew Lewis*
University of Wisconsin Extension
This section of the Nonprofit Organizational Assessment Tool can help guide a group
discussion about an organization's board development process. This group discussion
ideally should include board members, staff, volunteers, and service recipients, but could
be used as a self-assessment tool by anyone associated with a nonprofit organization.
Review the assessment form below. First, check the indicators that have been completed or accomplished. Next, indicate
the amount of improvement that you think is needed for that indicator (None or Not
Applicable, Some, or much improvement needed). It is your perception of the organization.
There are no right or wrong answers. If used with a group, each individual should complete
the assessment tool. After allowing adequate time, compare responses and discuss any areas
where there were different perceptions. As a final step, identify the top 2-3 priorities
where there was a high level of consensus on an indicator needing "much"
improvement. If you are doing this as a group, have each individual select their top three
priorities and then tally the "votes" for the group to identify the top three.
Begin developing an action plan that would address these issues (A suggested action plan
format can be found at the end of the document). After successfully implementing your
action plans that address your top priorities, revisit your assessment tool and begin
developing action plans for the other indicators that need attention.
This particular section of the assessment tool focuses on the board
development process and concepts presented during the educational programs
produced by the Learning Institute for Nonprofit Organizations. The complete
Nonprofit Organizational Assessment Tool will be comprised of nine sections based on the content presented in the eight
programs that make up the curriculum of the Learning Institute for Nonprofit
Organizations. The Learning
Institute for Nonprofit Organizations was a collaboration involving the
University of Wisconsin Extension and the Society for Nonprofit Organizations.
The University has ended its formal relationship with the SNPO, but videotape
presentation kits reside in most of the University of Wisconsin Extension County
offices.
*LI faculty contributor for this section: Carol Weisman
Board Governance Assessment Tool**
Internal Procedures
| Indicator |
Done? |
Needs
Improvement ? |
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None/
N.A. |
Some |
Much |
| 1. The organization has a clear sense of who they are and
has spent time thinking about the kinds of people they want on their board. |
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| 2. The organization has completed a formal review of its
current board profile and has identified deficiencies (i.e. by using an instrument such as
the board profile worksheet). |
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| 3. The organization has identified individuals that have the
characteristics that are lacking on the board and have developed a recruitment strategy. |
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| 4. The organization has a nominating committee in place. |
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| 5. Have there been any major changes in the mission of the
organization that might require a change in the make-up of the board? |
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| 6. The organization and governing board have spent time
talking about the advantages of having a diverse board. |
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| 7. The organization cooperates with other nonprofits in the
community in the development and maintenance of a board bank. |
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| 8. Potential board members are recruited from within the
organization (volunteers, past employees, members etc.) as well as outside the
organization. |
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| 9. The board chair and staff (if any) have developed
"tools" that keep board meetings interesting, fun and productive. Meetings are
evaluated for productivity at least occasionally. |
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| 10. Board members serve without payment unless the agency has
a policy identifying reimbursable out-of-pocket expenses. |
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| 11. Board members are accessible to stakeholders and to staff
(volunteer and paid). |
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| 12. The Board plays an active role in developing and
reviewing a strategic plan for the organization. |
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Operational Procedures
| Indicator |
Done? |
Needs
Improvement ? |
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None/
N.A. |
Some |
Much |
| 1. The roles of the board are clearly stated and
communicated. Board members commit to those responsibilities by signing a board commitment
letter. |
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| 2. Board meetings are well attended. |
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| 3. When a board member misses a board meeting without
announcing a reason, another board member or the director of the organization calls them. |
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| 4. Potential board members are interviewed before they are
asked to serve. |
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| 5. The board members receive orientation, regular training,
and information about their responsibilities. Orientation includes information on the
organization’s mission, bylaws, policies, practices, and programs, as well as their
governance roles and responsibilities as board members. |
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| 6. The board has a nominating process that ensures that the
board remains appropriately diverse with respect to ethnicity, gender, economic status,
culture, disabilities, age, skills and/or expertise. |
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| 7. Each Board has a board operations manual that summarizes
responsibilities (including job descriptions for officers) and operation procedures. This
manual includes a copy of the organization's bylaws. |
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| 8. The number of current board members is consistent with
what is required in the bylaws or state statutes. |
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| 9. The board reviews the bylaws on at least an annual basis.
Bylaws should clearly state the organization's purpose, service area, defined members,
defined board of directors, specific meeting guidelines, defined officers, defined
committees, guidelines for amending bylaws, guidelines for dissolution of the
organization, guidelines for financial and legal procedures. |
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| 10. The board has developed an annual meeting calendar with
tasks that routinely need to be done at specific board meetings…i.e. review bylaws in
November, Prepare for Audit in August, Nomination Committee prepares slate of nominations
in July etc. |
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| 11. The board has a policy and procedure for handling urgent
matters between regularly scheduled meetings. |
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| 12. The organization maintains a conflict-of-interest policy
and all board members and staff review and sign to acknowledge and comply with the policy
(Could be part of the Board Commitment letter). |
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| 13. The board has a written policy prohibiting employees and
members of their immediate families from serving as board chair or treasurer. |
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| 14. All Board meetings have written agendas and materials
that are given to the board in advance of the meetings. Board reports/minutes are recorded
and action taken on the minutes of all meetings. |
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Fiscal Management
| Indicator |
Done? |
Needs
Improvement ? |
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None/
N.A. |
Some |
Much |
| 1. Board members have made a strong individual financial
commitment to the organization. |
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| 2. The board takes the leadership role in fundraising and
financial management. |
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| 3. The board oversees the annual audit and uses it to
strengthen the organization's financial policies. |
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| 4. The board is doing a good job of insuring that the
organization is fulfilling its regulatory and financial requirements. |
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| 5. The board prepares a budget (based on a recommendation
from the executive director if one exists) which allocates funds to the major priorities
identified in the strategic plan of the organization. |
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| 6. A financial plan has been developed to ensure financial
stability for 3-5 years and is consistent with the organizations strategic plan. |
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| 7. The board involves individuals most knowledgeable about
programs/activities in preparing the budget. |
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| 8. The board understands the annual budget. |
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| 9. The board reviews monthly reports of expenditures and
revenues. |
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| 10. The board compares actual revenues and expenditures to
budgeted revenues and expenditures on a monthly basis. |
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| 11. Adjustments to the budget during the year are made based
on actual or anticipated changes. The board approves all adjustments/revisions to the
budget. |
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| 12. The current budget information is used as a base for
future budgeting,
board meetings i.e. review bylaws in November, Prepare for Audit in August,
Nomination Committee prepares slate of nominations in July etc. |
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Sample Action Plans:
Use the following format to begin formulating an action plan that would improve your
organization's performance relative to a specific indicator listed above.
Indicator: The organization has completed a formal review of its
current board profile and has identified deficiencies (i.e. by using an instrument such as
the board profile worksheet).
Task |
Time Line
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Who |
Will Do What |
Evaluation Measure |
Task #1 |
Next board meeting…30 days |
Jill (chair) |
Will add review of the board profile to the
next board agenda. Copies of Carol Weisman's board profile worksheet will be mailed to
board members with the next month's meeting agenda. Board members are asked to complete
the profile and return it prior to the next meeting. |
Agenda item is added to the agenda and
mailed to board members.
Number of board members that completed the profile worksheet for
themselves.
The summary profile is completed and shared at the meeting. |
Task #2 |
Next board meeting |
The entire board of directors and executive director. |
Review the board profile as it was
summarized. |
Number of board members participating in
the process. |
Task #3 |
Next board meeting |
Jill |
Leads a discussion, which begins to
identify important skill deficiencies in the current board. Asks the board to come to the
next meeting with a list of people that have the skills identified. |
Consensus is developed on deficiencies. |
Task #4 |
60 days |
Jill |
The board reviews a list of potential board
candidates that have the skills identified in the last meeting. |
Number of potential candidates. |
Task #5 |
90 days |
Bob, Nomination Committee Chair |
The nomination committee takes the list of
names generated by the board and prepares a recruitment strategy. |
Persons with the skills identified by the
board are successfully recruited to serve on the board. |
**Part of an 8-part
series of assessment tools that address critical management issues within a
nonprofit organizations. This tool was developed for the Learning Institute
for Nonprofit Organizations and is based in part on two existing tools:
Community Organizational Assessment Tool, Bright, Robert D., University of
Wisconsin Extension, 1995 (Adapted from Citizens Involvement Training Program., University
of Massachusetts, Amherst).
Checklist of Nonprofit Indicators, United Way of Minneapolis Area, 1998.
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