board basics for beginners presented by sandy gill, director northwest nonprofit resources saturday...
TRANSCRIPT
Board Basics for Beginners
Presented by Sandy Gill, Director
Northwest Nonprofit Resources
Saturday March 20, 2010
1
Topics We’ll Cover
Reasons for Having a Board 4 Types of Board Responsibilities Board Member Qualities Accountability Board Operation: the mechanics of being a board Overview of Board Recruitment and Retention Ten Steps Boards of All-Volunteer Organizations
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders
PO Box 9066; Spokane WA 99209 509-325-4303 [email protected]
Reasons for Having a Board
The board – Ensures funds are used for nonprofit purposes,
» NOT to make the board members or staff members wealthier.
– Hold the organization accountable to the public.
Boards do this through -– Financial oversight – Appointing a capable chief staff-person – Maintaining Control of Big Decisions
» Substantial changes to mission » Merging/ Closing, etc.
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane WA 99209 509-325-4303 [email protected]– Source: What's the Point of a Nonprofit Board, Anyway? By Jan Masaoka– http://www.blueavocado.org/content/whats-point-nonprofit-board-anyway
Mission Reasons for Boards
Demonstrate a sense of ownership in a nonprofit
Work hard to help their organizations succeed
Act as a safety net for the mission – stepping in during a crisis or “stumble”
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 509-325-4260(f) [email protected]: What's the Point of a Nonprofit Board, Anyway? By Jan Masaoka– http://www.blueavocado.org/content/whats-point-nonprofit-board-anyway
4 Types of Board Responsibilities
Mission & Program Financial Legal Structural
Board Responsibilities - Mission & Program
Assure current mission & purpose (1)
Assure effective organizational planning (6)
Enhance organization’s public standing (8)
Determine, Monitor, Strengthen Programs (9)
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 [email protected]: Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009; BoardSource
Board Responsibilities - Financial
Provide Proper Financial Oversight (3)– Assist in developing the annual budget; monitor – Ensure that proper financial controls are in place
Ensure Adequate Resources (4)– Provide adequate resources for the organization – In partnership with staff raise funds from the community
Participation in Fundraising – Participate personally and annually.– Participate in identification, cultivation, and solicitation of prospective
supporters.
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 [email protected]: Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009; BoardSource
Board Responsibilities - Legal
Care: – To exercise reasonable care when making decisions for the
organization
Loyalty: – To be faithful to the organization’s mission
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane WA 99209 509-325-4303 [email protected]: The Legal Obligations of Nonprofit Boards: A Guidebook for Board Members by Jacqueline Covey Leifer
and Michael B. Blomb, BoardSource
Board Responsibilities - Legal
Obedience: – To act in the interest of the organization when making decisions affecting
the organization.
» Conflict of interest policy
» Full disclosure when board member has a personal interest in matters impacting the organization
» Never use information obtained as a member for personal gain
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane WA 99209 509-325-4303 [email protected]: The Legal Obligations of Nonprofit Boards: A Guidebook for Board Members by Jacqueline Covey Leifer and Michael B. Blomb,
BoardSource
Board Responsibilities - Structural
Attendance– To attend board meetings and participate in some committee work
Selection, Evaluation and Support of the executive– To approve the selection, compensation, and, if necessary, the dismissal
of the chief executive.– To assure regular evaluation of the executive’s performance.
Assurance of Board effectiveness – To assure the board fulfills its governance responsibilities and maintains
effective organization, procedures, and recruitment.
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 [email protected]: Welcome to the Board: Your Guide to Effective Participation by Fisher Howe, 1995Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009
Individual Board Member Qualities:
Integrity: Reputation and proven track record - respected, responsible, honest
Open Mind: Board perspective, willingness to search out solutions, face complex problems where solutions are not easy.
Competence: In their areas of expertise, experience, and/or perspective.
Enthusiasm: Eagerness for the cause of the organization
Sense of Humor: Can see the light side of even the most serious of situations.
"What kind of board member does this organization need me to be right now?“
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders; PO Box 9066; Spokane Wa 99209 509-325-4303 [email protected]
Sources: National Charities Information Bureau (NCIB); BoardSource; Jan Masaoka; Class participants
Tools for Role Clarity
Board Handbook: resources all in 1 place– Governing documents– Policies, procedures
Job Descriptions: Tool for Understanding, Clarifying Expectations– Board Members, – Officers,– Committees
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 [email protected]
Accountability
To Constituency & General Public– Having a strong board is not just a way to get help, also – A way to keep the organization close to its constituents (not just
its donors and friends).
Government Monitoring & Expectations– Report filing – accuracy, on time– Public Access to information– Compliance with laws
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 509-325-4260(f) [email protected]
Accountability – Your Role
Record & Abide by Policies for Board Operations: – Financial
– Ethics such as Conflict of Interest;
– Personnel
– Public Relations
– General Operating (especially if all volunteer or few staff) Ask good questions The importance of good relationships Understand and comply with your responsibility to state, local &
federal government. Separate myth from fact.
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 509-325-4260(f) [email protected]
Board Operation: the mechanics of being a board
Governance Structure that’s easy to create, maintain, and change as needed
Policies for consistent practice Board Dynamics (culture, expectations, styles) Relationship with staff (if any) Board Meetings – how long, how often, agenda, conduct Elements for effective meetings - (well planned, led w/ clear
priorities) Committees as and where needed Evaluation – effectiveness of board performance (individual & group)
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane Wa 99209 509-325-4303 509-325-4260(f) [email protected]
Ten Steps of Board Recruitment & Retention
Welcome – Create a Welcoming Environment Identify – Board Profile, Needs, Priorities Cultivate – Invite Interest Recruit – Invite Commitment Orient – Welcome to the Board, expectations, team building Engage – Board Member Involvement Educate – Develop a Well-Informed Board Rotate – Keep the Board Fresh Evaluate – Board Reflection Celebrate – Appreciation & Recognition
Prepared by Sandy Gill, Northwest Nonprofit Resources: Resource Center for nonprofit leaders
PO Box 9066; Spokane WA 99209 509-325-4303 [email protected]: The Board Building Cycle, BoardSource, 2000.
Boards of All-Volunteer Organizations
Board’s responsibilities are different from one all-volunteer organizations to another.
Each organization will want to define its responsibilities for itself.
Two types of responsibilities that boards have in all-volunteer organizations. – 1) corporate or governance related to responsibility for the
nonprofit corporation, as protectors of the public interest as embodied in the organization.
– 2) management and leadership (the doing)– related to the board as the leaders and chief volunteers in the
organization
PO Box 9066; Spokane WA 99209 509-325-4303 [email protected]: All Hands on Board by Jan Masaoka
Corporate or Governance Responsibilities
Responsibilities as a Collective Body
1. Handle the money and file the forms.2. Keep the organization & its operations legal and safe.3. Make big decisions for the future. 4. Make sure the organization is accountable to its constituencies. Protect
the organization’s reputation.5. Get help when needed (such as outside expertise, more volunteers).6. Plan for the arrival and departure of individual members.
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane WA 99209 509-325-4303 [email protected]: All Hands on Board by Jan Masaoka
Management & Leadership Responsibilities
Typically responsibilities of individual board members.
7. Get the work done.8. Support other volunteers so they can successfully contribute to the
organization’s work.9. Be ambassadors to the community.10. Pass along the covenant. Provide leadership in spirit. Set the tone for
others.
Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders; PO Box 9066; Spokane WA 99209 509-325-4303 [email protected]
Source: All Hands on Board by Jan Masaoka http://www.boardsource.org/dl.asp?document_id=13
Topics We Covered
Reasons for Having a Board 4 Types of Board Responsibilities Board Member Qualities Accountability Board Operation: the mechanics of being a board Overview of Board Recruitment and Retention Ten Steps Boards of All-Volunteer Organizations
Prepared by Sandy Gill, Northwest Nonprofit Resources A Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane WA 99209 509-325-4303 [email protected] www.nnr.org
Other Resources
Pages 9-10 of Resources for the Basics of Nonprofit Boards A selection of resources on these topics
Legal Resources Board and Governance Resources General Nonprofit Resources
Prepared by Sandy Gill, Northwest Nonprofit Resources A Resource Center for nonprofit organizations and their leadersPO Box 9066; Spokane WA 99209 509-325-4303 [email protected] www.nnr.org