betsy hills bush program officer, westchester community foundation adjunct professor, pace...

Betsy Hills BushProgram Officer, Westchester Community

FoundationAdjunct Professor, Pace University

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Role of Board of DirectorsLegally responsible for the organization“A corporation shall be managed by its board

of directors.”Article 7, sec 701, New York State Non Profit Corporation Code

IRS new 990 form pointedly asks if board has reviewed financial information, compensation reviews.

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We all know the roles the board is supposed to play:According to Fisher Howe¹, who wrote the

definitive work “Welcome to the Board”, the seven responsibilities are:

¹ Howe, Fisher. "Welcome to the Board: Your Guide to Effective Participation" by Jossey-Bass, 1995

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The seven responsibilities:Attendance at meetingsAdherence to Mission Hire and fire the Chief ExecutiveOversee financesProgram oversight and supportFund raisingEvaluate the effectiveness of the board

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But staff at many organizations are disappointed with the performance of their board members

They’re disengaged, never want to do anything, don’t attend meetings

Won’t fund raiseOverly intrusive, block good ideasAsk too many questions at board meetings

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Board – Staff RelationshipStaff is trained in nonprofit management;

board (most likely) is not.Staff attend educational sessions; Board does not.Board members are volunteers, work and

family commitments often conflict.

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The Good Old Days

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Women also played an

important but restricted role.

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Board membership was an elite institution through the 1950’s

In 1940, there were only 12,500 charities registered with the IRS.

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Then in the ‘60’s everything changedGovernment began funding social programs

and nonprofits were formed to take the funding and run the programs.

The nonprofits had boards made up of community members, not people of wealth

Nonprofits were formed to effect social change, rather than uphold the elite power base.

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How to be a superhero – and get paid

for it

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The rise of the superheroNonprofit Founder/Executive Director

Twilight of the powerful board of directors?

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The number of 501(c)(3)’sskyrockets

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How to form a NY nonprofitStep by step instructions from the Web siteCitizens Media Law Project:

Step 1: “Write out your mission”Step 2: “Figure out your fund raising plan”Step 3: “Choose a business name”

…Step 6: “Recruit and appoint a board of directors”

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Board and staff confusion of roles“You’re asking me to serve on the board as a

favor, and yet I’m the one whose legally responsible for documents filed with government agencies.”

“All you want is my money. You don’t want my opinion on anything.”

“You recruited me for my expertise, but you expect me to sit quietly at meetings and rubber stamp reports.

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Bringing balance back to the board/staff relationship

Look at best practices for boards Better Business Bureau StandardsIndependent Sector Governance Matters Board Source

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Two best practicesTerm limits – should be in your by-laws and

you should adhere to them.Boards need fresh blood and the fresh

enthusiasm that comes with new people seeing the program through new eyes.

Need to constantly cultivate potential members will keep board members out there, looking and communicating to others.

Board chairs especially need term limits.

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Best Practices, cont.Limit related parties on the board, i.e.,

married couples, parents and children, etc.Be wary of the appearance of “cliques.”Both practices are turn offs to potential

board members.

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Turbo charge your boardInclude them in problem solvingCommunicate, communicate, communicateGive them experiences that will help them

understand your missionPlace your organization’s mission in a global

context

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Include them in problem solvingAn opportunity for the board to contribute in

a meaningful way.You have to be honest with your board – they

are legally responsible for the agency. Hiding information breeds distrust.

If there’s bad news – use board members as a sounding board before going to outside donors.

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Communicate!They need to be constantly updated on

programs, have an “elevator speech” to easily explain what agency does.

Board needs to feel confident in talking about the agency.

Take the communication challenge: Communicate every day with a least one board member.

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Make it an experienceYounger affluent “board member types” often

belong to what I call the Experiential Class – they want to acquire experiences for themselves and for their children. They are intensely interested in the world, in other cultures, and in understanding big issues.Eco tourism vs. beach resort, etc.Volunteer on vacation

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How can you give your board an experience?What does your agency do that is out of the

realm of experience for your board?Work for a day in a job training programOffer a tour of the neighborhoods in which

your agency works, or from which clients comeEat a meal in your soup kitchen

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Tie your programs to larger social issuesHelp your board see that what you’re doing

has global implications – no matter how small your program.Share articles, press reports, web site/national

organizations concerned with the same issues.

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Example 1:“Education is the civil rights issue of our time.”

College graduates earn $1 million more over a lifetime than high school graduates

The US cannot afford to lose the brainpower of millions of its young people

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Example 2:

“The wonderful thing about education is that no one can take it away from you.”

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And make your board feel like superheroes, too!

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