Governance is always important. The processes and systems you use to stay out of trouble, as a business owner, an individual and a parent are crucial to success. I often say that governance is everywhere and if you think about it, you will agree with me.
The difference when you are serving on the board of a non-profit organization is that you are no longer talking about your own business or your own kids. Now you are dealing with other people’s money and those other people are counting on you to do what is right for them, not necessarily what is best for you.
Governance provides the structure for an organization to achieve their goals. The members of an organization need to know that there are systems that make sure the directors are following the wishes of the stakeholders.
A director agrees to do what is best for the organization and the governance structure is put in place to make sure the best occurs.