Who are the Owners?

One of the things that makes governing a non profit entity like a Christian ministry more difficult than a for profit organization is that the ownership is much more illusive. In a for-profit venture, the owners are obvious, those who literally own some of the company, gernally through owning a certain number of shares of the company. The board devives their authority from these owners and the purpose of a profit company is always the same -- make money! In the non profit world, the owners are hard to identify because no one actually "owns" a non profit organization, it is a public trust, and for Christian organizations, Jesus owns them. However, there is still a moral ownership here on earth to which the board is accountable. Understanding the concept of a moral ownership is essential. The moral ownership is to whom the board is accountable and on who's behalf they govern. One of the steps in the process of Policy Governance is to identify this illusive moral ownership. As a board does this it is vital that they don't start thinking like a for-profit. For example, a board may identify its largest donor as a key owner, but this donor may not be a high level owner at all. Indeed owners invest, but money is only one form of investment. A group of high level owners may invest in other ways. As the owners are identified, then the board can more clearly ask the next question: "what do our owners say the organization is for?" That becomes the starting place for establishing the ENDS of the organization.