Policy-Based Governancefor Churches

An Overview Presented by Gary Lerude

What is Governance?

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How a group or body organizes itselfto carry out its Mission and Vision

Effectively

Efficiently

In harmony with its values

What Are We Trying to Achieve?

A governance system that

Clearly defines the roles and responsibilities of the governing board, staff, committees, volunteers

Enables the governing board to focus on the church’s vision, long-range goals, and policies

Builds community, encourages programs, and empowers initiative

Supports growth

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The Policy Governance® ModelDeveloped by John Carver

Integrated system of governance

First adopted by non-profits

Since used and tailored by UU churches, districts, and the UUA

The governing board discerns the strategic goals (Carver calls them “Ends”) and defines the “limitations” within which the church must operate

Minister, staff, committees, volunteers work to achieve the goals within the limitations defined by the board

How are we going to get

there?

Where are we going?

Governing Board

Minister, Staff, Committees, Volunteers

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Flow of Authority and Accountability

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Church Members• Ultimate

authority

Governing Board• Elected by

church members

“Executive”• May be an

individual (the Minister) or a team

• The Minister typically leads the team

“Staff”• Paid staff• Committees• Volunteers

Reflects Congregational Polity,where each congregation is autonomous

An Integrated Governance System

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Larger Community

GoverningBoard

CongregationThe governing board identifies the needs of the congregation and larger community

The board discerns and articulates goals to address the needs –consistent with the church’s vision and mission

The Minister, staff, committees, and volunteers offer programs and provide services to achieve the goals.

ClosedLoop

Executive Team

Minister

VolunteersStaffCommittees

Executive

Staff

Carver’s Four Governance Policies

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BylawsOverarching governing document for the church

Governance Process The Board’s job and how the Board will do its job

Board-Executive LinkageThe Board’s relationship to the “Executive” and how the Board monitors Executive performance

Strategic Goals or “Ends”What the church aims to achieve

Executive LimitationsThe boundaries within which the “Executive” and “Staff” are free to operate

Church Bylaws

Governance Process

Board – Executive Linkage

Strategic Goals

Executive Limitations

Common Topics for Discussion

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Is our church big enough for Policy-Based Governance?I don’t like the language – Executive, CEO – we’re not a businessShould we have a single Executive or a team?We’re giving too much power to the Minister, Board, etc.I don’t want the Board to lose visibility into what’s going on!We spend every Board meeting wordsmithing policies. I want to dosomething!Do we have to write all the policies before adopting Policy-Based Governance?

• Adopting a new Governance model is a big change – so the process generates lots of questions and requires considerable dialog.

• Don’t become paralyzed by over analyzing. Try and iterate.• Policy Governance won’t build trust in a congregation if trust is lacking.

UU Nashua’s Governance Structure

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Church Membership Financial

Records Review

Nominating

Board of Trustees

Executive Team

Minister

Staff Committees

Executive Team• Minister• Director of Religious

Education• Church Administrator and

Membership Coordinator• Treasurer

Board Committees or Linkages• Investment Review• Personnel• Stewardship• White Wing School

Volunteers

UU Nashua’s Strategic Goals

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Worship & Spiritual

Development

Religious Education

Community Involvement

Denominational Presence

Social & Environmental

Justice

Congregational Fellowship

Maintenance of Our Facility

Vision & Mission

UU Nashua Strategic Goal Examples

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Worship & Spiritual DevelopmentWe enable spiritual growth, for each of us and as a church community.We provide a place where new and long-time members from various religious backgrounds feel free to question their beliefs and find support in seeking their own personal insights into life's meaning and value.We encourage each member to decide what is truly important in his or her life and to make life changes accordingly.

Religious EducationOur religious education program uses the sources, traditions and principles of Unitarian Universalism and the world’s religions to help our youth and adults develop a religious and spiritual basis for living life, with all of its joys and difficulties.We help them to think for themselves in developing their own beliefs, values, and principles.

Executive Limitations Examples

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Treatment of Church Members and VisitorsWith respect to interactions with Church members and visitors, including children, the Executive Team shall not cause or allow conditions, procedures, or decisions that are unsafe, undignified, unnecessarily intrusive, or that fail to provide appropriate confidentiality or privacy.

Financial Condition and ActivitiesWith respect to the actual, ongoing financial condition and activities, the Executive Team shall not cause or allow the development of fiscal jeopardy or a material deviation of actual expenditures and income from the annual budget approved by the congregation or Board priorities established in the Church Purpose and Goals.

UU Nashua Timeline

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Church Year Activity

2002-2003 • Board began studying Policy Governance

2003-2004 • Church Goals developed and adopted by the Board, and presented at the Annual Meeting (June 2004)

2004-2005 • Board drafted remaining Governance policies• Executive Team defined by Board and Steve Edington• One year trial of Policy-Based Governance model planned for

2005-2006 church year• Dialog with committees and the congregation

2005-2006 • Trial of Governance model, September – May • Board officially adopted Policy-Based Governance, based upon

initial experience and positive feedback

2006-2007 • Board formed Bylaws committee to recommend updates to the Bylaws, to be consistent with Governance model

June 2010 • Congregation adopts revised Bylaws

Summary

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Policy-Based Governance has proven effective in UU churchesBetter defines roles and responsibilitiesAllows Board to focus on the long-term and strategic questionsEmpowers paid staff, committees, and volunteersEnables us to better carry out our mission

Implementation of the model can and should be tailoredNeeds and circumstances of the congregationWill evolve with time

Resources for Further StudyPolicy Governance® web siteUUA’s Wiki web site on Policy Governance

Policy-Based Governancefor Churches

Policy-Based Governance for Churches by Gary Lerude is licensed under a Creative Commons Attribution-

NonCommercial-ShareAlike 3.0 Unported License.

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