Guiding Principles

Adopted October, 2007 by the Foundation for Malcolm Baldrige National Quality Award, Inc. Board of Directors

In recognition of the need for the Foundation to strive to maintain the public trust in fulfilling its respective charitable purposes, the Baldrige Foundation Board of Directors has adopted the following Principles as a condition of membership. Members are asked to endorse these Guiding Principles that set forth ideals for each member to work to achieve and demonstrate in the operations of the Foundation.

The Guiding Principles address the question – what does the Foundation stand for? The following four guiding principles reflect aspirations for good governance, stewardship, and continued assurance of the use of private philanthropic money for the good of the Baldrige National Quality Award Program.

GOVERNANCE

Board Members understand and embrace their responsibility to oversee the mission, strategic direction, finances, By-Laws and operations of the Foundation with honesty and integrity. They establish clear and understandable policies addressing key operational concerns, such as conflict of interest, investment and audit policies, as well as fundraising efforts.

Effective Practice Options may include, but are not limited to:

A) Maintaining policies and practices, such as a written code of ethics, a conflict of interest policy, Foundation By-Laws, and oversight of donor intent;

B) Conducting a periodic review of the Foundation’s policies, funding practices, values and mission statements, objectives and strategies;

C) Completing an annual review of the Executive Director (ED) to improve the confidence, support, growth and working relationship between the Board and the ED. 

D) Providing leadership for continuity and plan for transitions in Board membership;

E) Ensuring the Foundation’s governing body members have the requisite skills and experience to carry out their duties, which can include;

• Orientation of new Board members to their responsibilities by sharing copies of bylaws and other organizational documents, adopted policies, and examples of communication tools such as annual reports;
• Reimbursing Board Members for expenses by considering the appropriateness of fees in relation to responsibilities, time commitment and the federal guidelines for public charities; and
• Requiring that Board members sign a conflict of interest policy to ensure that personal interests of Board Members and staff do not conflict with the Foundation’s mission and purpose;

F) Adopting mechanisms, such as third party agreement letters, required progress reports, and evaluation tools to assess progress in achieving fundraising and endowment management.

STEWARDSHIP

Board Members manage and grow the resources of the Foundation Endowment to maximize philanthropic purposes and actively avoid unnecessary expenses. They pursue public benefit through their own philanthropic goals, procedures and by supporting the work of partners, colleagues and trustees.

Effective Practice Options may include, but are not limited to:

A) Creating a compensation policy for all staff;

B) Ensuring that expenses are reasonable and adhere to federal guidelines for foundations;

C) Encouraging Board Members to serve the Foundation as volunteers or for reasonable direct expenses; and

D) Adhering to all legal requirements concerning self-dealing.

ACCOUNTABILITY AND COMMUNICATIONS

Board Members willingly accept their philanthropic obligations under the law. They welcome public interest, take responsibility for their actions and communicate truthfully in accordance with the donor’s intent.

Effective Practice Options may include, but are not limited to:

A) Ensuring the Board governing body and staff are knowledgeable and up-to-date about the applicable legal, accounting, audit, investment and tax requirements;

B) Ensuring that organizational resources are effectively used to serve the mission. Accordingly, the Board holds the Executive Director responsible for good management and program implementation but must hold itself accountable for the quality of the organization's governance. Through periodic performance assessments via a self-assessment questionnaire the Board will identify ways to strengthen its operations in service to the organization and its mission by seeking clarity about its own effectiveness;

C) Honoring documented original donor intention to the greatest degree possible when adapting to contemporary Baldrige National Program and State and Local Award program needs if necessary. The boundaries for funding should be within the limits of the agreement with the Secretary of Commerce and donor-generated documentation,

D) Encouraging Board Members, staff and trustees to be engaged in the work of promoting the Baldrige Award and Criteria on the national and state/local level and to bring diverse perspectives to Foundation deliberations;

E) Establishing a succession planning and communications plan that aligns with the Foundation’s strategic objectives; and

F) Advising trustees, partners and the Baldrige National Program in a timely manner, including funding decisions, changes in policy or priorities or other information of general interest.

RESPECT

Board Members interact respectfully with Baldrige National Program management, trustees, colleagues, peers and partners.

Effective Practice Options may include, but are not limited to:

A) Building relationships with donors, policy makers and Baldrige Award recipient leaders in a manner based on mutual respect, candor, understanding and fairness.

B) Working diligently to assure that the Foundation never attempts to influence the Baldrige Award process. The Foundation will remain independent of the Award Program oversight role exercised by the Baldrige Program’s federal advisory committee (i.e., the Board of Overseers). Furthermore, the Foundation will never attempt to use its financial position to gain Award applicant information or influence the recipient selection process.

C) Encouraging feedback from trustees and constituents concerning the effectiveness of funding strategies and program operations; and

D) Considering a full range of funding strategies in order to best meet the Foundation’s mission/goals.