Good governance is a key factor to microfinance associations’ success in delivering quality services and developing a vibrant country or regional microfinance industry. This toolkit provides associations with a strong foundation for putting good governance principles into practice and gives facilitators that work with associations valuable resources for the development of governance trainings.

This online tool has been designed for easier reading and navigation. Supplemental sample documents and case studies are accessible through integrated links, allowing users to obtain more information in areas of interest.

Users can download either the entire document as a single PDF or each chapter individually. Each page in the online tool has links to appropriate chapters as well as relevant Board tools and templates.

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Board Tools

Structuring the Board

Governance Structure

• Sample Microfinance Association Governance Structure Matrix - A comparative look at the structures of 12 microfinance associations

Bylaws - Rules for Guiding the Governance Structure

• Template for Creating Bylaws – Provides a list of common categories that can be listed in an association’s bylaws. This would be particularly useful for networks just getting started.
• Sample Microfinance Association Bylaws – Offers a selection of actual bylaws from a number of microfinance associations located in different regions and at different phases of development (nascent and mature).

Specific Roles and Responsibilities of the Board of Directors

• Sample Quarterly Report to the Board – An example of an informative and concise board report.
• Sample MFA Roles Board of Directors – A matrix with a snapshot of the responsibilities of the board of directors for 12 microfinance associations.
• Sample Board Attendance Policy – Guidance on attendance policies, potential problems, and solutions.
• Sample Board Code of Conduct – A sample code of conduct for board members from the Council of Microfinance Equity Funds Consensus Statement, which has been adapted for microfinance associations.
• Roles and Responsibilities: Sample List for Boards Members and the Executive Committee – Looks at the common roles and responsibilities for members of a board of directors.

Building the Board

Board Composition

• Simple Board Matrix 1 – A quick checklist to help a board assess their level of diversity in terms of gender and skills.
• Simple Board Matrix 2 – Another quick checklist to help a board assess their level of diversity in terms of gender and skills and plan for the next three years.
• Sample MFA Governance Structures – A matrix with a quick look at the profiles of a sample of microfinance associations.

Recruitment

• The Nominating Committee: Recruiting Prospective Board Members – A guide describing the composition of a nominating committee and its duties.
• Board Development Analysis Grid – A simple grid to help an association (particularly a nominating committee) compare information on potential board members.

Operating the Board

Board Committees

• Sample Committee Terms of Reference – A concise sample list of the principal roles and responsibilities of a board committee.
• Tips for Setting Up a Board Committee – A list of tips and ideas to guide the process of setting up a board committee; includes important questions to ask before beginning.

Board Meetings

• Managing In-person and Virtual Meetings – A list of suggestions to make board meetings more efficient and worthwhile.
• Simple Board Meeting Feedback Form – A brief survey to quickly and easily assess the effectiveness of board meetings.

Guiding the Board

Board Policies

• Template for Creating a Board of Directors Manual – Provides common categories that may be included in a board of directors’ manual.
• Sample Board Orientation Checklist – A quick checklist to walk aboard through the steps of orienting new members to the board.
• Board Code of Conduct Template 1 – A sample code of conduct template that can be adapted to an association’s particular needs.
• Board Code of Conduct Template 2 – A different sample code of conduct template for adaptation to an association’s particular needs.
• Sa-Dhan Code of Conduct – A sample of a microfinance association code of conduct

Board Assessment

• Board of Directors Self-Evaluation Tool – A tool to help individual board members evaluate and reflect on their own personal performance as a board member.
• Individual Board Member Evaluation Form – Another short survey to assess individual board member performance.
• Individual Board Member Report Card – A short survey to help board members identify their own strengths and weaknesses in a number of key areas of governance.
• The Corporate Fund Nonprofit Board Self-Assessment Guidebook – A comprehensive guidebook that walks the user through the entire process of conducting a self-assessment; answers the question: “Is the board doing what it should be doing to ensure the organization has the funds it needs to produced, market, deliver and evaluate its programs?”
• Center for Public Skills Training Board Assessment – Focuses on competencies and characteristics that can develop the profile of an effective future focused board. The results of the assessment can be used to develop action plans to strengthen the visionary leadership capacity of a board.

Additional Resources

• Corporate Governance Codes, Principles & Recommendations – Compiled by the European Corporate Governance Institute, here are the full texts of corporate governance codes, principles of corporate governance, and corporate governance reforms from countries around the world.
• Board Governance Training for Microfinance Institutions Toolkit – This MicroSave toolkit offers guidance to the board of directors for implementation of effective governance.
• Principles and Practices of Microfinance Governance – Developed by ACCION International, this guide describes good governance practices for microfinance institutions that can also be relevant for microfinance associations.