The Handbook of Nonprofit Governance

THE HANDBOOK OF NONPROFIT GOVERNANCE From BoardSource comes The Handbook of Nonprofit Governance. This comprehensive resource explores the overarching question of governance within nonprofit organizations and addresses the roles, structures, and practices of an effective nonprofit. The Handbook of Nonprofit Governance covers the topics that are of most importance to those charged with creating and sustaining effective leadership, including building a board; succession planning; policies; financial oversight; fundraising; planning; strategic planning processes; risk management; and evaluation of the board, CEO, and organization. Praise for The Handbook of Nonprofit Governance "This is the first book I've found that covers the topic of governance from A to Z. I know what I'll be assigning the students in my governance class as a textbook next semester!" —TERRIE TEMKIN, founding principal, CoreStrategies for Nonprofits, Inc. "BoardSource has prepared an exceptional resource for nonprofit boards and leaders. This comprehensive volume offers timely and relevant information about board work and governance, including practical tools and resources that will be valuable to all types of nonprofits." —DAVID O. RENZ, chair, department of public affairs; Beth K. Smith/Missouri Chair in Nonprofit Leadership; and director, Midwest Center for Nonprofit Leadership; University of Missouri, Kansas City "If you are involved in nonprofit organizations, and if you ever have doubts about how they are best run, this is the book for you-and BoardSource is the place to turn." —FISHER HOWE, consultant, Lavender/Howe & Associates, and author, The Nonprofit Leadership Team BoardSource (formerly the National Center for Nonprofit Boards) is the premier resource for practical information, tools and best practices, training, and leadership development for board members of nonprofit organizations worldwide.

About BoardSource v Acknowledgments xi Introduction xv Part One: Governance Principles, Roles, and Structure 1 1 In the Spirit of Service: Introduction to the Nonprofit World 3 2 What Is Governance? 15 3 Governance Roles 31 4 Governance Structure 55 5 The Board–Chief Executive Relationship 81 Part Two: Governance Practices 97 6 Building a Board 99 7 Legal and Ethical Responsibilities 127 8 Financial Oversight 145 9 Fundraising 167 10 Strategic Thinking and Strategic Planning 189 11 Communications and Outreach 211 12 Succession Planning and Chief Executive Transition 233 13 Evaluation 255 14 Bylaws and Policies 275 15 Board Meetings 295 16 Board Dynamics 317 Appendix: Sample Policies for Nonprofit Boards 331 Board Member Fundraising 332 Human Resources 333 Code of Ethics 335 Conflict of Interest 337 Confidentiality 341 Whistle-Blower Protection 342 Record Retention and Document Destruction 344 Executive Compensation 348 Investments 350 Financial Audits 356 Risk Management 357 Media Relations 358 Glossary 359 Resources 367 Index 375