About Certification: Governance

BACK: Mission & Structure

NATIONAL STANDARDS FOR U.S. COMMUNITY FOUNDATIONS (developed by the Council on Foundations)

II. Mission, Structure and Governance (Cont.)

G. A community foundation's governing body:

1. is responsible for the mission, direction and policies of the organization. Explanation: The governing body of the community foundation is the ultimate fiduciary and is legally accountable for all of the activities of the organization, even when it delegates responsibility.

2. ensures adequate human and financial resources and actively monitors and evaluates the organization's chief executive officer.
Explanation: Human resources may includepaid or unpaid staff. It is the responsibility of the governing body to provide adequate resources to meet the National Standards.

3. approves policies to prevent perceived, potential or actual conflicts of interest.

4. serves without compensation (exclusive of the chief executive officer.)

5. is not controlled by any other nonprofit organization, or by any single family, business or governmental entity or any narrow group within the community.

6. reviews and adopts an annual operating budget.

7. ensures that the governing documents include policies for size of the board, required number of meetings annually, limits of members' terms, and structure and responsibilities of standing committees.

8. ensures that the community foundation reflects the diversity of the community it serves.
Explanation: This item correlates to the item above regarding the governing body membership reflecting the community. Here, the governing body is looking beyond itself, and seeking staff and committee diversity, policies that do not promote exclusivity, and endeavors that address diverse communities.

9. ensures that the community foundation meets all laws and legal requirements. Explanation: All applicable local, state, and federal laws and regulations must be observed.

10. approves all grants.
Explanation: The governing body has responsibility for grant approval, which maybe exercised through delegation of the decision-making process.

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