Section 2: Question one
What are the responsibilities of 1 the board.2 of the CEO? What is the board’s responsibility to the stake holders in this community?
In general nonprofit boards have certain fundamental responsibilities such as understanding the organization’s mission and providing financial oversight. Boards struggle mostly with their external responsibilities which include fundraising, advocacy, and building community outreach. This lack of understanding what is and is not boards role can lead to dysfunctions in terms of micromanagement, decision making, and lack of engagement. As practitioners we have learned that without knowing completely what the job is, it is impossible to do a job. Thus all board members must take the time to
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Governance is the policies, systems, structures and strategies and operational framework that helps align organizational leadership to take proper actions. Nonprofit organization’s boards serve a humanitarian or environmental need. Thus they aren’t income generating boards as in a for-profit business. Therefore, the governance or appropriate board model is used upon the need of that organization. In a nonprofit organization the board keeps the mission of the organization at the forefront when guiding and directing actions of the organization. Incoming funds are used to support the goals of the organization rather than generating profit. However, there are fife board models for nonprofit to govern the …show more content…
Management team model which is widely used model among nonprofits. With this model the board is committed in performing its duties. They don’t hire paid employees to be responsible for human resources, fundraising, finance, planning and programs.
5. Policy board model which the board gives high level of trust and confidence over to the CEO. They have regular meetings with the chief executive officer to get updates on the organization’s activities and willing to grow in the knowledge, ability and more about the organization.
In the case study, I believe that a combination of some of these board governance models will work better, then a going with one model. Advisory, Patron and Management team models are the perfects models I prefer. Combination of these models will increase the performance and at the same time cost effectiveness. In this case the composition has to do with the functions and the distribution of the persons on the board. They all help to facilitate the capacity of the board to carry out the mission and its goals to the best interest of the organization. Giving attention to legal and ethical issues are the core duties of the board members, therefore it is necessary to be sufficiently involved and informed about the risks and liabilities of the organization. The success of the organization when serving the community depends on board and officers of a nonprofit. However they must recognize proper procedure to carry out the work. The duty of the CEO is to encompass
Worth, M. (2014). Nonprofit management: Principles and Practice. 3rd Ed. Thousand Oaks, CA: SAGE Publications, Inc.
The nonprofit sector in America is a reflection some of the foundational values that brought our nation into existence. Fundamentals, such as the idea that people can govern themselves and the belief that people should have the opportunity to make a difference by joining a like-minded group, have made America and its nonprofit sector what it is today. The American "civil society" is one that has been produced through generations of experiments with government policy, nonprofit organizations, private partnerships, and individuals who have asserted ideas and values. The future of the nonprofit sector will continue to be experimental in many ways. However, the increase of professional studies in nonprofit management and the greater expectation of its role in society is causing executives to look to more scientific methods of management.
William & Torres provided a table to reflect hospitals ownership, and noted that some hospitals, while owned by one type of entity, may be operating under a contract by another entity, such as a hospital management company (Williams & Torrens, page 185). Some of the largest groups of hospitals in the nation are nonprofit community hospitals (Williams & Torrens, page 185). Nonprofit entities, including hospitals, function under special provisions of corporation law in each state, and under federal and state tax provisions that recognize their community service function (Williams & Torrens, page 185). The nation has approximately 1 million nonprofit entities of various sorts and hospitals have long been a traditional service provider in the nonprofit sector (Williams & Torrens, page 185). Nonprofit entities are generally exempt from most taxes at the federal, state, and local levels including income and property taxes (Williams & Torrens, page 185). These facilities are governed by a community based board that has ultimate authority for running these entities. Sponsorship for a nonprofit can come from various organizations, unlike other hospitals with traditional religious sponsorship (Williams & Torrens, page 185). A small percentage of the nation’s hospitals are operated by for-profit businesses (Williams & Torrens, page 186). For-profit hospitals have owners and issue stock to those owners to reflect their equity position (Williams & Torrens, page 185). For-profit hospitals are not just accountable to the community but must also provide a return on investment to the shareholders; they expect to generate a profit to pay a return to the equity inves...
Nonprofits are dealing with many risks that seemed especially significant. For example, Nonprofits might encounter fiscal risk caused by the difficulty of finding enough resources and funds to subsidize their mission and objectives. Throughout history, fiscal distress has been a way of life for the nonprofit sector as many nonprofits are competing to access the needed resources and raising money to fund their activities. Nonprofits also might encounter the risk of losing market shares due to the uneven opportunity in accessing resources required to establish new facilities or new programs and services in response to the rapid surges in demand. Accordingly, nonprofits are required to maintain effectiveness
Finally, I will discuss which type of corporation I prefer. A Review of Corporate Roles and Duties The Role of the Board of Directors. The corporation’s business is carried out by its management, under the direction of the Board of Directors. The Board, and each committee of the Board, has complete access to management. Also, the Board and committee member’s have access to independent advisors as each considers necessary or appropriate.
Nonprofit Organizations The purpose of this research is to define nonprofit organizations, describe opportunities that are present in nonprofits, outline advantages and disadvantages of working in the nonprofit sector, and explain how you can determine if this is an area for you to consider as a career. WHAT IS THE NONPROFIT SECTOR? "Nonprofit" is a term that the I.R.S. uses to define tax-exempt organizations whose money or "profit" must be used solely to further their charitable or educational mission, rather than distribute profits to owners or shareholders as in the for-profit sector. The term is also used to describe organizations which are not a branch of -- are independent of -- the government and the corporate sector. This term refers to one of the most important uniqueness of a nonprofit organization: it is independent of both the public or government sector and the private or corporate sector.
It is not surprising that a corporate or IT governance is largely debatable and dominant business topic nowadays (Weill & Ross, 2013). That is why there is such a significant number of the guidelines published on the issue. Anyway, it is highly important that these guidelines are being applied properly. The board of the organization is considered to be responsible for the implementation of these guidelines and principles (Weill & Ross, 2013). Nevertheless, the principles may vary considering the organization approaches. The application of the particular organization approach predetermines the principles a board is being guided by.
Besides, their traditional responsibilities to provide financial and analysis insights, CFOs are greatly involved in supporting and developing a strategy for the organization. Likewise, "the CFOs are usually on the back end of strategy: a strategic decision is made and they are asked to put numbers on them... but also immediately understand the long-term implications of those numbers on the organization's strategy" (Williams, 2012). Additionally, in a healthcare organization, "there are circumstances where very tough decisions around resource allocation, operational management, and strategy need to be made, sometimes very quickly... and CFOs have the ability to marry the numbers to the organizations strategy" which is other responsibilities that CFOs need to have to lead the organization. (Williams, 2012). Therefore, today's CFOs role evolved from the finance functions to analysis and strategy and with increased responsibilities, "CFOs need to move out of their comfort zone and embrace innovation and change", which " is critical to efforts to fuel growth, maintain market share, and improve patient satisfaction and clinical quality, efficiency, and delivery".
Along such time, the budget has grown over $2000,000, fact that paradoxically left Youth Haven with a deficit of$20,000. Marcel is in the process to upgrade her mindset of for-profit sector molded to the nonprofit sector environment. In addition, an executive director must consider some other factor, even when a nonprofit departs from the way any for-profit business is. In the textbook, Nonprofit Management Principles and Practices, Worth pointed out, “nonprofit managers are confronted with sorting through an array of options and selecting the measures and methods that meet both their own need for useful management information as well as the expectations of funders, watchdogs, and regulators.” (Wroth, P. 161). It is important to understand that administrators of non profits not only have to handle the management side of things but also to make sure that whatever service they are providing to the community is still running
“Non-profit organizations are organized for a public or mutual benefit other than generating profit owners or investors.” (Tury, n.d). As the organization are also tax exempted. Nonprofit doesn’t entirely mean that organization do not have profit, it just means that the profit is not shared among the owners and shareholders. Most of the organization uses profit to make others judge about the success but in the case of Gates Foundation the success cannot be judged by the amount of profit gained.
The meetings helped the CEO and direct reports to realign their responsibilities. The CEO also learned that he needed to nurture himself and realign his work-life balance. The toxicity that had been affecting interpersonal relationships was greatly reduced, if not totally eliminated. After considerable dialogue with the executive coach, the CEO strongly urged the board to stay the course on what he believed to be a sound business plan.
We will now look at the terms within section 181 , specifically ensure the directors ' perform their duties for 'the best interests of the company
Corporate governance is the framework designed to facilitate direction and performance of companies. Dees, Lumpkin, Eisner & McNamara (2012) itemized the primary participants as (1) the shareholders, (2) the management (led by the CEO), and (3) the board of directors (BOD)” (p. 330). Effective corporate governance can attribute to improved financial performance, customer satisfaction and growth for corporations.
Nonprofit managerial accounting adapts the techniques of for-profit analytical analysis to a nonprofit environment to find solutions to managerial
Corporate governance is the set of guidelines that determines the control and organization of a particular company. The company’s board of directors is in charge of approving and reviewing changes to this set of formally established guidelines. Companies have to keep in mind the interests of multiple stakeholders, parties who have an interest in the company. Some of these stakeholders include customers, shareholders, management, and suppliers. Corporate governance’s focus is concentrated on the rights and obligations of three stakeholder groups in particular: the board of directors, management, and shareholders. Corporate governance determines how power is split between these three stakeholders. A company’s board of directors is the main stakeholder that influences the corporate governance of a company (Corporate Governance).