The Rundown - October 28, 2022
The latest news and notes from the nonprofit and philanthropic sectors
Today, we are around the board table as we talk about a great article that was in the Chronicle of Philanthropy by Beth Gazley, a professor of public and environmental affairs at Indiana University. Dr. Gazley takes us into a clear understanding of the CLO Doctrine and uncovers who really plays the ownership role in a nonprofit organization.
The CLO Doctrine
It was a few years ago when I first learned about the CLO Doctrine. I was in a wonderful program put on by the Ohio Association of Nonprofit Organizations, as our organization was going through the process of learning about accreditation. One of the first lessons we learned was the CLO Doctrine.
I can tell you in all the college classes I took learning about nonprofit and government management (I have earned both a B.S. in Urban Affairs and a Master of Public Administration degree), I never recall once learning about the Duty of Care, the Duty of Loyalty and the Duty of Obedience. There are a few pieces on the subject, but this article in the Chronicle of Philanthropy might be one of the best ones on the topic I have seen.
The article explains not only what the Duty of Care, Duty of Loyalty and Duty of Obedience is (and thankfully not in a way that is filled with dry lawyer-speak) but it actually gives concrete actions that Executive Directors and Boards can look at to see how they are doing on these measures.
The above chart, while not comprehensive, does a really great job of outlining some of the most important duties a nonprofit Board of Directors needs to go through to ensure not just legal compliance, but are working towards making efforts to demonstrate top-level stewardship and leadership. This information is key for Executive Directors, since it is many times that E.D.s are the ones that help set the board agenda and discussion around the table.
Another Nugget of Wisdom
This quote from the piece should be ingrained in the mind of every first-time nonprofit leader:
Unlike in the case of businesses, nobody owns a nonprofit. Instead, nonprofits essentially belong to themselves. Since they are mostly tax-exempt, they operate under the distant supervision of public officials such as a state’s attorney general. The board acts as agent of the state to ensure the public trust is not broken.
I can’t tell you how many times I have been in meetings where the phrases “My nonprofit” or “My organization” has come through. And while it’s more than natural to use possessive language for the organizations we work for, this language was not always used in that fashion
Many times, nonprofit organizations are created by larger institutions (such as churches or government agencies). Sometimes, nonprofit organizations are created by individuals and these people believe that founding an organization is somehow related to “ownership”.
Anyone who has spent any time in the nonprofit field knows this is not the case.
In effect, all of our organizations are owned by the public and we hold their trust through the Board of Trustees and are bound by the laws of the state in which we are incorporated. We are there to act in the best interest of the public, our clients and our organization. We aren’t there to act int he best interest of individual board members or other organizations.
Why This is Important
To those that are seasoned in the nonprofit world, this stuff seems basic and elementary. But, if you have ever seen the downfall of an organization, it’s not hard to see that the downfall often happens when the basics aren’t followed.
This publication has talked time and time again about nonprofits behaving badly and those situations usually come down to unethical and (many times) illegal behavior by Executive Directors or other leaders that are often never reported to or plainly ignored by board members. Yet, it’s those board members that can find themselves in the witness stand and the defense table when things get sideways.
Our sector demands ethical and legal behavior from our leaders, whether they are the Executive Directors hired for their expertise to implement policies, or by the volunteer Board of Directors that exercise the public trust to guide and lead the organization. When one of our organizations fails, we all fail. We can all work harder to do better. This information presented today gives us a framework on what to do and how to do it.
Question of the Week
The Weekly Announcements
A quick rundown of what I am seeing and hearing in the nonprofit world….
Now Hiring!
I have a nonprofit in Sidney, Ohio that has reached out to me looking for a new Executive Director. I can tell you that this a very strong organization that needs leadership that has strong entrepreneurial and staff management skills. If you have any interest, please drop me a line at pinnaclestrategiesltd@gmail.com and let’s talk!
Registrations now open for Paul G. Duke Academy for Community Leadership!
Registrations are now open for continuing education offered by Edison State Community College in Piqua for the Paul G. Duke Academy for Community Leadership! I have been a proud alumni of both programs and have even been asked to help present sessions and teach classes. It’s an amazing program and I would encourage you to be a part of it if you are in the area! You can register here.
There are only two spots open for the 1.0 Academy and one spot open for the 2.0 Academy!
The Paul G. Duke Academy for Community Leadership 1.0 is a series of workshops designed to develop more effective directors, leaders, board members, staff and volunteers of nonprofit organizations. Course topics include the fundamental practices of board recruitment, planning, staffing, budgeting, evaluation, board meetings and community awareness. The classes are designed to help individuals make a difference on their boards and in their community.
The Paul G. Duke Academy for Community Leadership 2.0 has been created and designed specifically for experienced executive directors of nonprofit organizations and alumni of the Academy for Community Leadership 1.0. This challenging and intensive Academy is coordinated by the Academy development team and participants. Advanced participants will conduct original research and exchange results via reports and discussion. Participants will help to further develop the foundational agenda for each of the four monthly sessions that will explore nonprofit organizations—based upon their backgrounds, experiences, pressing issues and needs—through self-analysis, organizational analysis, guest speakers, best practices, resource review and in-depth discussions. At its conclusion, Academy 2.0 participants will be immersed in the annual Mosaic of Community Leadership Conference, both as participants and presenters. Academy 2.0 is the latest collaboration between the Paul G. Duke Foundation and the Edison State Community College Center for Leadership Development.
What Can We Work on Together?
Did you know that Pinnacle Strategies works individually with nonprofit and public sector leaders to help them solve problems, achieve goals and gain confidence in their roles?
Why?
Because, this work is hard and it’s often a lonely road. Our nonprofit and public sector leaders need people that they can talk to to get solid advice and encouragement to do the work that is in front of them. If you feel that this can be of value to you, or a member of your team, please reach out to pinnaclestrategiesltd@gmail.com and let’s talk.
We are so close to 500!
Over the last few weeks, the subscription base to the newsletter has just grown and grown and grown. It has finally arrived at a point where we are SO CLOSE to 500 SUBSCRIBERS!
Originally, I had hoped to have 500 by the end of the first year, but it looks more and more likely like it’s going to 15 months to hit that 500 figure, which is still pretty impressive. You can help this newsletter get to that 500 figure by sharing this publication with your friends and colleagues!
Personally, I feel very excited about the future of this newsletter and if you have any ideas or comments, please feel free to share them with me at pinnaclestrategiesltd@gmail.com
I know many of you have shared this with your friends and colleagues and I am very grateful. Thank you! If you haven’t shared it yet…..well, here is your chance….remember we are trying to get to 500….right?
Ready to Learn Something New?
One of the prettiest cities in Fall is Indianapolis and travelling there can open a perfect opportunity to sharpen your skills and meet new professionals in the field. I would encourage you to look at some of the offerings of The Fund Raising School at the Lilly School of Philanthropy at Indiana University’s campus in Indianapolis. The professional development school has great programming both on-line and in-person both in Indianapolis and at other sites across the country. Take a look at their course offerings here!
Other Ways to Connect
Our coaching practice has openings and it has been a blast working with nonprofit leaders all across the country! If you are interested in working with me to get your nonprofit organization on a track to achieve the big missions you have, please reach out to me at pinnaclestrategiesltd@gmail.com.
Here are some other ways you can keep in contact with Pinnacle Strategies!
Check us out on our LinkedIn Page
Check us out on the Celebrating Leadership Facebook Page.
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