Catch Together Module 4

Governance

Effective governance—who makes decisions for your organization and how—is essential to any well-run organization. Now is the time to start thinking through who will make the best and most appropriate Board of Directors for your organization and how you can support them.

Module-4.jpg
 
 

Lesson 4.1

Selecting the Board

Time: 2.5 hours


Participant Guide

Facilitator Guide

Video Class

This lesson will help you decide who to recruit for your board of directors and how to recruit them. 

Usually, boards of directors are elected by the members of your organization, and it’s best to have an odd number of directors to avoid any given board decision ending in a tie vote. 

By the end of this lesson you will be able to:

  • Understand the “components” of an effective board of directors.
  • Create a list of potential board members.
  • Devise a recruitment plan for possible board members.
 
 
 

Lesson 4.2

Conflict of Interest

Time: 1 hour


Participant Guide

Facilitator Guide

Video Class

This lesson will teach you what a conflict of interest is and help you think about how to avoid such conflicts with a formal policy. 

Board members are responsible for the finances of the organization. On a daily basis, they have three general duties to the organization: duty of loyalty, duty of care, and duty of obedience.

By the end of this lesson you will be able to:

  • Understand conflict of interest restrictions on board members and how it affects our recruitment plan.
  • Given the IRS sample conflict of interest policy, outline a policy for our organization.
 
 
 

Lesson 4.3

Private Inurement

Time: 1 hour


Participant Guide

Facilitator Guide

Video Class

This lesson will teach you what private inurement is and how it might come up in your organization. 

This is another term that may not seem totally logical at first glance. Basically, a nonprofit can’t give away its assets to private individuals; that would be called a private benefit. Private inurement is what happens when those assets are given away to “insiders,” or disqualified persons, as the IRS calls them.

By the end of this lesson you will be able to:

  • Understand private inurement restrictions on our activities and those of our beneficiaries.
  • Understand when and where private inurement might become an issue for us, specifically.
 

Next: Budgeting