The Heritage of the Eastern Shore - Feasibility Study - Management

Structure and Roles of the Managing Entity

Feasibility
Study Topics:

As the Upper Eastern Shore heritage area project develops, the need will arise to create a formal, legal entity to manage the affairs of the heritage area. For the purposes of this report, the managing entity will be referred to as the Upper Eastern Shore Heritage Council, or the ãcouncil,ä and the participating partners, public agencies and offices, and private organizations will be referred to as ãpartners.ä The council will need to possess three main attributes in order to be effective and influential:

  • Autonomy -- Because the Upper Eastern Shore heritage area includes the jurisdictions of four counties and numerous incorporated towns, the council should be autonomous and impartial when proceeding with projects and programs.  An objective governing body should make decisions, and objective criteria for rating projects and potential actions by the entity should be created.
     
  • Representation -- Every major partner, public or private, should be represented in the decision-making body of the management entity. The enfranchisement of partners can be contingent on the degree of contribution to the council and heritage area by that partner.  Not every partner will need to be able to vote, but every partner should have an opportunity to participate in the decision-making process.
     
  • Legality and Liability -- The council must incorporate under state and federal law for purposes of liability and entering legally binding contracts.  It may be necessary to register as a 501(c)(3) nonprofit organization.  This will exempt the organization from tax liability and allow donors to deduct their gifts as charitable contributions.

Role and Responsibilities 

  • Vision -- Essentially, the management entity will be keeper of the vision for the heritage area.  It will be charged with the task of crafting, implementing, and refining the vision, and keeping it before the public.  Annual reports on the organizationâs and regionâs progress will help keep the vision alive.
     
  • Funding -- The management entity will be the primary funding clearinghouse for the heritage area.  It will receive funds directly from the Maryland Heritage Areas Authority and will seek all other appropriate avenues of funding including appropriations from local governments.  Among other roles, the management entity would provide grants and loans to partners for projects that support the vision for the heritage area, as well as undertaking projects directly.
     
  • Strategic Planning -- Long- and short-term strategic planning is essential for securing the future of the heritage area.  The management entity will continually assess the status of projects and resources, monitor the economical use of resources, and develop the most effective strategies to achieve the vision.
     
  • Coordination -- In such a large area and with so many diverse partners, communication, coordination, and partner-building are vital components of the management entityâs mission.  Moreover, the management entity will have to determine the best course of action for the heritage area while accommodating the various needs of the partners.  Strong ties between and among partners, healthy respect for the contributions and individualism of the partners, and an empathetic approach to collaboration will help ensure the success of the heritage area.

Governing Structure

The Council can take many forms and meet the responsibilities listed above.  In order to meet the needs of the heritage area the council will need to explore becoming an independent nonprofit organization.  The principal issue of such an organization is the degree of involvement of existing local governing bodies. 

A nonprofit organization has two basic structures:  a self-perpetuating board whose governing members nominate and vote on their replacements according to established bylaws;  or a membership-driven organization, whose members vote on key actions by the organization, including voting for board members.  In either case, the nonprofit can be entirely independent of local government in its choice of board members.  Or, it is possible for the organizationâs bylaws to call for a number of seats on the governing board to be filled by appointment by local governments (or by vote of the membership in the case of a membership-driven organization). 

Heritage areas are most often managed by nonprofit organizations, although governmental commissions or authorities are not unknown.  When they are nonprofit organizations, they typically are not membership-driven and have governmental representatives on their boards on a continuing basis.

In terms of funding, both governmental and nonprofit organizations are able to receive charitable (tax-deductible) contributions from individuals, although individuals often are reluctant to make contributions to governments.  Foundations often do not give to governmental bodies.

An important issue in all cases is the involvement of other, non-governmental partners, especially nonprofit museums and other organizations, in the governance of the council.  These organizations, which must raise funds from donors, visitors, foundations, and other sources, could benefit substantially from an organization whose mission is to support and promote them across the region, and raise funds for grants from new sources.  However, other heritage areas have found it somewhat troublesome to have such partners directly represented on heritage-area boards by their executive directors or staff, and sometimes board members.  The role of partners in the organization is further discussed in this Study.

The council would in all likelihood, over time, develop a staff consisting of an executive director, a number of specialists as required, and administrative support.  The staffs of other heritage areas range in size from a single person to as many as nine or ten.  Generally speaking, one to four staff is most common.