A strong nonprofit organization must be supported by sound governance. The 5 Pillars of Nonprofit Governance is a model developed by Diligent Consulting to define the core components that support nonprofit success. 

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The National Center on Charitable Statistics says that 30% of nonprofit startups will fail (i.e. cease to exist) within the first 10 years. A well-known nonprofit expert claims that the primary reason for failure is "empty optimism" -- a noble or worthwhile goal, but no structure to support it. These sentiments are sobering but true.

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A Nonprofit Governance Audit, using the 5 Pillars of Nonprofit Governance, is one way to safeguard against such failure.

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The 5 Pillars of Nonprofit Governance include:

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• Foundation: All nonprofits must have a solid foundation that includes a defined mission, inspiring vision, and core values. During an audit, we will ask: Are your core documents up-to-date? Do you have mission creep? Are these foundational documents still relevant and useful?

• Policies & Procedures: Solid bylaws, supported by accurate policies and procedures, will guide your nonprofit organization and help the Board govern well. During an audit, we will ask: Have the bylaws been reviewed recently and do they include all core content? Do you have appropriate policies and procedures to govern finances, board operations, and organizational leadership? Are your policies reactive to your circumstances?

• Board Structure: Nonprofit boards come in many sizes and have varying degrees of involvement in the daily operations of the organization. During an audit, we will ask: Is your Board set up for ongoing leadership and future success? Are your committees robust and productive? Are your board meetings focused and productive? Is your board overly involved in day-to-day operations?

• Strategic Objectives: All nonprofits were formed to meet a specific need or to serve a specific population. During an audit, we will ask: Does your organization have strategic goals to meet the core mission and move the organization in the right direction? Are board committees structured around the strategic objectives? Are board members and staff invested in the strategic objectives? 

• Assessment: Success is only recognized when it is quantified and monitored. During an audit, we will ask: How do you define goals and assess progress? Do board members have access to assessment data? Does the board annually assess itself and create action to improve on its weaknesses? Do you have dashboards that help board members hone in on exactly what they need to know?

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