Can governance be cooked as a successful recipe? This is what the American experience in managing nonprofit organizations suggests: five essential practices, five written policies, and a toolkit that helps boards deliver transparent and accountable performance. Read how this "recipe" can develop your organization and enhance its impact.

Is Good Governance Just Slogans?

In philanthropy, we might not notice "good governance" when things are going well. But in moments of tension, its absence becomes painfully clear. It is like a well-crafted recipe: it requires specific ingredients, a skilled chef, and constant stirring with awareness. Its absence? That's a guaranteed recipe for chaos.

The National Council of Nonprofits in the United States offers a practical model that charities in Saudi Arabia can draw inspiration from while maintaining the uniqueness of the local context.

5 Essential Practices for Better Governance

  1. Documenting Official Minutes

    It is essential to record everything discussed in board meetings, as well as delegated committees like the executive committee. This practice reinforces transparency and facilitates reference to decisions later.

  2. Annual Review of Conflict of Interest Policy

    A written policy is required, along with a questionnaire distributed to members. Documentation is necessary when activating the policy in any real situation.

  3. Fairly Determining Executive Compensation

    The board must demonstrate that compensations are appropriate and not excessive. It is advisable to refer to benchmarks in the sector.

  4. Reviewing the Annual Disclosure Form Before Submission

    In the United States, this form is called "Form 990", and it is used to ensure transparency and governance. In the Saudi context, the same principle of transparency can be applied by informing the board about financial and governance reports before submitting them to relevant authorities.

  5. Public Disclosure of Declarations and Statements

    American organizations are required to publish their last three tax forms submitted. Saudi organizations can voluntarily disclose performance data to support community trust.

5 Policies That Must Be Written and Approved

  1. Conflict of Interest Policy

    Prevents decisions that provide personal benefits to board members or employees.

  2. Whistleblower Policy

    Provides protection to anyone reporting corruption or misconduct without fear of punishment.

  3. Document Retention & Destruction Policy

    Specifies when and how official documents should be retained, and when they may be destroyed.

  4. Gift Acceptance Policy

    Specifically for non-cash gifts such as real estate or property, ensuring that gifts are aligned with the organization's goals.

  5. Joint Venture Policy

    When the organization participates in a joint project, this policy outlines what prevents private benefit for any party.

Practical Tips to Enhance Governance

  • Board Self-Assessment

    A tool for comparing board performance against known governance standards and identifying gaps.

  • Diversity Within the Board

    A balanced representation of different experiences and backgrounds enriches the organization's decisions and reduces bias.

  • Orientation Sessions for New Members

    Facilitates the transition of new members and strengthens commitment from the start.

  • Publishing Governance Policies and Activating Them Through Training

    It is beneficial for the board to discuss real cases of conflict of interest, simulating how to handle them.

  • Staying Updated in the Sector

    Subscribe to newsletters from governance-related entities, both locally and internationally.

  • Linking Governance to Advocacy for the Organization

    The "Stand for Your Mission" project in America teaches boards how strong governance means strong advocacy for the vision.

  • Preparing Meeting Agendas Professionally

    Use annual checklists (Board Tune-up Checklist) or specialized calendars like those found in the “Nonprofit Law Blog”.

Resources to Enhance Your Governance Credibility

  • National Council of Nonprofits – Original Article
  • BoardSource: A leading educational platform in board management
  • Charity Lawyer Blog: Common Mistakes in Board Governance
  • IRS Governance Check Sheet: An evaluation tool used during formal audits
  • Nonprofit Law Blog: A practical guide to meeting minutes and agendas

Good governance does not mean a lot of documents, but rather quality intentions and clarity of roles. An organization that manages itself well is one that maintains its impact regardless of changing circumstances.

Source: National Council of Nonprofits – Good Governance Policies