A Client-Based Project on the Jefferson Clubhouse, Eaton, Ohio

By Marion Rhodus

Board Governance. There are problems we know and those we don’t know.

The Problem – we know… is there are many who say, “Boards make a difference in the successful nonprofit

organization.”

The Problems- we don’t know are What effect does a board corporately have on a nonprofit organization? Does their work affect a change in the overall outcomes of the organization?

Research Problem: Does Board Governance Make a Difference in the effectiveness of a nonprofit organization.

Therefore, we conducted research to determine how the organization should concentrate their efforts necessary for achieving the success the members are looking for.

If boards make a difference, then we needed to know what boards do to cause a change and influence effectiveness.

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We examined the literature to determine the link between boards and organizational effectiveness.

We found many versions of effectiveness. Many ways to measure effectiveness. Several models of board governance. An effective board “constitutes a highly effective team that

provides ongoing collective value that’s far greater than the sum of its collective parts” (Herget, 2002b, p. 7)

Most organizations lack appropriate models for governing boards (Carver &Carver 1997)

Deal with Founder's Syndrome (McLaughlin & Bucklund, 2008)

Board performance and organizational effectiveness are related (Bradshaw et al.,1992) 3

I would like to introduce you to my client. The Jefferson Clubhouse is a mental health agency

Provides mental ill patients an opportunity to lead normal lives

Founder’s early retirement caused a leadership vacuum

Pat McElwee is the current manager

Recently attended training in New York City about Clubhouses

The training convinced her of the need to develop a vision, mission and strategic plan for Jefferson Clubhouse 4

Has 501.c.3 nonprofit, tax-exempt status Mental health agency A dysfunctional Board By-laws are violated Single funding source Faces threat of losing funding

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◦ Jefferson Clubhouse struggling with organizational

deficiencies,

◦ Founder’s Syndrome (McLaughlin & Bucklund, 2008).

◦ Board resignations have been common◦ Poor Governance, lack of vision statement, (imagine

riding in the seat of a blind taxi driver)

◦ Now facing the threat of losing donor funding.

◦ The current management has expressed need for help

◦ This study is undertaken to determine the

organizational challenges facing Jefferson Clubhouse6

To determine organizational challenges facing Jefferson Clubhouse of Eaton, Ohio and how to improve its operations

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Central Question:◦Does board governance make a difference in the effectiveness of a nonprofit organization?

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To study the organization, I collected data by a combination of: ◦Interviews with ( JH executive director, the founder, the original grant writer, & past and present members

◦Observations◦Surveys ~ Appendix G & K◦Document Analysis (business minutes, by-laws, 501.c.3)

◦Arranged a dinner meeting with the members

◦A survey was sent by email to 25 clubhouses in the County 9

The data review identified the following:◦ Poorly written by-laws, not enforced ◦ Poor board composition, some members were

prejudiced against mental illness◦ Lacked vision and mission statement◦ Board members could not identify the mission◦ Mistrust among board members◦ Frequent group conflicts among board members◦ Lack of strategic plan◦ Lack of motivation for members◦ Inadequate funding hence limited operations◦ Poor record keeping

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By order of importance Hold Board meetings more frequently By-laws be revised and be enforced Improve record keeping for operations and reporting

them to funding source Jefferson House Board needs a Strategic Plan that

identifies vision, mission

Conduct Board Self-Assessment regularly

Diversify funding sources

Diversify the board to reflect the racial composition of

the community11

The Director and Members acknowledge with me:

Jefferson Clubhouse is recovering from Founder’s

Syndrome

Lack of motivation contributes to resignations

A new vision and mission statement will revitalize its

activities

Lack of funding will diversify its operations

Board composition is poor Most conflicts and organizational due to board

mismanagement12

Stephen R. Block (1998) “Improving board and executive director

effectiveness is not found in the wisdom of the traditional model or others like it. The answer to improving board governance will come when board members and executive directors start thinking differently about their roles and responsibilities.”

 

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Many views of what effectiveness is exists

More than one method of measuring effectiveness

More than one board governance model Successful NPO is dependent on doing the right things Scholars disagree exactly what the “right” things are Therefore: Doing things right is not a guarantee of effectiveness,

rather than adopt what works for someone else, every organization must discover and continually seek to improve its practices

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