Governance [ˈɡəvərnəns]: the act or process of governing or overseeing the control and direction of something (such as a country or an organization)
Ever wanted to cite a reference and had trouble finding it?
Do you understand your state statutes and governing documents?
Do you understand your duty of care and reasonable expectations of Board members?
The proliferation of CICs throughout the 1980s and 1990s (and a myriad of lawsuits) brought realizations and substantial academic thought about how to construct governance that can stand the test of time. Perhaps the ultimate failure of CICs is choosing not to spend the time and money required to establish appropriate governance and oversight. Investing appropriately in your governing documents will pay decades of dividends. You need not start from tabula rasa. Incorporate the lessons learned from thousands of your peers.
