Administration
Frequently Asked Questions about Administration
Generally, four basic functions are included in the definition of management: 1) Planning. Goals must be prioritized, schedules must be created for employees and volunteers, and dates for various events must be set; 2) Organization. This includes the structuring of operations, implementing efficient communication systems, and developing better filing systems; 3) Leadership. Managers should lead by encouraging staff and volunteers and should champion efficient methods that are in line with the organization’s mission; 4) Coordination. Mechanisms for evaluation should be implemented, and information must be exchanged with the community so the organization can efficiently pursue its mission.
Learn more: The Free Management Library: Planning Assessment Checklist
The process of creating a strategic plan is almost as valuable as the finished plan itself and offers many benefits to the organization. Three broad characterizations summarize some of the benefits that may be enjoyed by organizations that take the time to create a strategic plan. First, creating a strategic plan promotes strategic thought and action. Critical information will be gathered and acted upon in a more systematic manner. The Board and the staff will be more united in their vision of what is necessary to achieve the organization’s goals, and their individual actions will be more aligned with the broader organizational priorities. Second, the decisionmaking process will be improved. Not only do strategic plans focus attention on critical issues, but the plans provide the Board and the staff with rubrics for dealing with challenging situations. Third, strategic plans promote action. Organizations engaging in strategic planning are more responsive to demands placed upon the organization and more effective in dealing with new challenges.
Learn more: The Free Management Library - Strategic Planning Basics
The fact that most board members are not compensated and serve out of a sense of civic duty does not absolve them from accountability. Board members have an obligation to always act responsibly and with the organization’s best interests in mind. Board members are held to certain standards of conduct most commonly known as the following:
- Duty of Care--Board members have an obligation to perform their responsibilities “in good faith and with a certain degree of diligence, attention, care, and skill.” This is not to say, however, that directors must always make correct decisions. As long the director fulfills his or her duty of care, a court will not review the action, even if the action is harmful to the organization.
- Duty of Loyalty--Board members have an obligation to act in the organization’s best interests. Included in this obligation is a prohibition against using one’s position as a director to improperly obtain a personal benefit. The director is to place the interests of the organization above his or her own interests.
- Duty of Obedience--Board members must remain true to the organization’s mission. They must carry out the purpose of the organization as it is expressed in the articles of incorporation or the certificate of incorporation. If the directors desire to depart from the purpose in a substantial way, the articles and bylaws must be amended.
For more, see The Principles and Practices, section V.F.
The fact that an organization is classified as a nonprofit does not excuse it from complying with federal employment laws. A nonprofit may also be subject to various state laws. Whether or not a law applies to a nonprofit may be determined by the nonprofit’s number of employees. Therefore, it is especially important that growing organizations keep abreast of employment laws and regulations. Although by no means an exhaustive list, the following is a representative sampling of potentially applicable employment laws: Americans with Disabilities Act (ADA), Civil Rights Act of 1964, Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), Health Insurance Portability and Accountability Act (HIPPA), Occupational Safety, and Health Administration (OSHA) Unemployment Compensation.
The term "political subdivision" denotes any division of any state or local governmental unit which is a municipal corporation or which has been delegated the right to exercise part of the sovereign power of the unit.
Find a detailed discussion of "political subdivision" and related issues here.
By engaging in outcomes measurement, an organization can better assess the effects its programs are having on people’s lives. The United Way of America’s Outcome Measurement Resource Network defines outcomes measurement as “The regular, systematic tracking of the extent to which program participants experience the benefits or changes intended.” Outcomes Measurement provides an answer to the question, “What is the impact on the recipients of the services we offer?” Outcomes measurement is a tool that can assist an organization in the pursuit of two fundamental goals: improving and refining program services and communicating the organization’s value to the community. Organizations that can make a strong, quantifiable showing that their programs are having a strong impact on people’s lives are, among other things, better able to recruit and retain talented staff, obtain competent volunteers, increase or retain funding, and be leaders in the community. The results of outcomes measurement can help an organization determine where improvement is needed, how budgets should be modified, and how long-range goals should be prioritized.