Not-for-profit management principles and practices

Nonprofit Governance

The Family Christian Association of America (FCAA), Inc. is under the governance of a state wide corporate board of directors, composed of 30 volunteers from various professional disciplines. This board is responsible for the creation and approval of policies, development of financial resources, providing oversight of financial and legal matters, as well as authorizes volunteer advisory councils, and collaboration on strategic planning. (The Florida Christian Association of America, Inc., 2010)

The FCAA shows complete cohesion between the articles of incorporation, bylaws, website, and the work that they are doing in the community served. The mission and vision statement are clear, concise, and evident through the services provided to the population served by this nonprofit. There are actually very few areas that appear to need any correction or improvement. It appears that if there were more guaranteed ways to secure funding from year to year would be one of the main areas of consideration. However FCAA works under a membership basis at the cost of two hundred dollars (Florida Coalition of Black Faith & Community-Based Organizations [FCBFCBO], n.d.) per year per organization. Therefore if there are a significant number of organizations that have membership and those organizations continue to reap benefits through maintaining membership, then this will provide residual income from year to year.

A facet of governance that is most crucial to the success of the FCAA as well as any other nonprofit organization is communication between the board of Directors and the Administration. Corporate governance is a way that a supplier of finances assures that there will be a return on the investment made in a given project etc. (Shleifer & Vishny, 1997, p. 737). FCAA may want to diversify their investments to create a bigger return on the future. Currently the nonprofit is able to show investors/members a show of return through the events they are able to provide in the community, as well as the organizations they help, and community involvement

Once again it seems necessary to explain that there are not a proficient number of ways that the FCAA could be better than they are. It is evident that the board and administration work together in a cohesive nature. It is evident that though a significant amount of the revenue that the FCAA receives is through grants and contributions, which through the utilization of a membership process with an annual fee guarantee that the two hundred dollar renewal fee per organization is residual. In addition, the affiliations that the FCAA has made with surrounding organization s allow the nonprofit to also be assured of the funds that the affiliates will provide on a continual basis.

The FCAA has managed to make itself a cornerstone in the community, which in itself has been possible through the policies and procedures set by the board members. The board along with the administration have also worked together to create the programs, that have proven from the start to be effective, cost efficient, and productive. The investments that the organization has made through the combined efforts of the board and admin also insure renewable and continued revenue through the organization.