VCG Governance Matters: Good Governance Guide

Program Effectiveness

All programs and services are aligned with the mission of the organization. Therefore, synergy from an integrated portfolio of programs provides clients with highly responsive services and results in cost savings for the organization and efficiencies in application of their grants.
The organization has identified specific outputs and outcomes to measure programmatic success. These should include client satisfaction and outcomes, financial performance, , operational efficiency, and organizational learning.
Program outcomes indicate that the program models are effective.
Effective program delivery processes are in place that can be sustained, even with changes in organization leadership.
Program designs aimed at expansion or replication in other localities have clear systems in place (or in development) to support the process while sustaining the core program.
When warranted, the organization seeks opportunities to collaborate with other organizations to ensure that client needs are met in ways that are sustainable for the organizations involved.

Indicators of Good Governance

Program development is consistent with the organization's mission and strategic directions as laid out by the board.
The organization has in place well-structured programs with clear goals, performance measures/metrics, and clear expectations and feedback loops for staff.
A system is in place for ongoing professional development for staff.
Programmatic data gathering is built into the program and the information gathered (program processes, results, client satisfaction, and client impact) is used to grow or improve programs and services.

Funders’ Questions For Nonprofits

Board Practices

Do the organization's programs reflect its structure and function to support its mission?

A system of program review and development is in place to ensure congruence with the organization's mission, vision and values. Programming is not driven primarily by funding availability.

Does the board support efforts to form strategic alliances to maximize client benefit?

The board is aware of the significance of collaboration to leverage resources and maximize services to the community, and factors this into policy making and organizational review.

Does the board receive reports on program performance and its impact on fiscal health?

The board receives and reviews regular reports on program performance, including its impact on the organization’s performance and allocation of resources.

Does the board ensure program integrity and effectiveness?

Measures are in place for observation, data gathering, assessment, and application of lessons learned, as well as accountability for performance.

What specific action can funders take to encourage better governance in this area?

The funder can stress the importance of board involvement in setting organizational direction and performance standards.
The discussion can be followed-up when the nonprofit presents a grant report or makes a renewal application.

Case studies