Amrahum Shuraa BaynahunDecision Making Among

Resourceful PeoplePresented by Dr. Khalifah Ramadan

kramadan@aol.com

716 812-1404 cell

716 854-5446 home/office

http://www.isna.net/conferences/grantwriting/

Amana - Trusts And the Qur'an is rich with verses that confirms all this. Allah

says in the Qur'an:

"Oh ye who believe! Eat not up each other's property by unfair and dishonest means." Qur'an (4:29)

"Woe to those that deal in fraud, - those who, when they have to receive by measure from men, exact full measure, but when they have to give by measure or weight to men, give less than due. Do they not think that they will be called to account- on a Mighty Day when (all) mankind willstand before the Lord of the Worlds." Qur'an (133: 1-6)

Amana Allah does command you to render back your trust, to

those to whom they are due." Qur'an(4:58)

"Those who faithfully observe their trusts and their covenants." Qur'an (24:8)

"Remember, there is no faith in him who is not trustworthy; there is no place for him in religion who cares not for his pledged word or promise."

"The signs of a hypocrite are three: when he speaks, he is false, when he promises, he fails; and when he is trusted, he breaks the trust."

Amana Prophet Mohammad (PBUH) has said:

"He who cheats is not of us. Deceitfulness and fraud are things that lead one to Hell."

Once Prophet Mohammad (PBUH) came upon a heap of corn in the market of Madinah and thrust his hand onto it. His fingers felt damp. On being asked, the trader replied that rain had fallen upon it. The Prophet (PBUH) observed, "Why did you not then keep (the wet portion of) it above the dry corn, so that men may see it? He who deceives, is not one of us."

Amana Another example: Prophet Mohammad (PBUH) said:

"The seller must explain to the buyer the defects, if any, in the quality of the article offered for sale. Should this not be done, the seller will permanently be caught in the Wrath of Allah (according to another narrator the exact words, `he will always be cursed by the angels')."

Amana

Prophet Mohammad (PBUH) said: As for bribery, Prophet Mohammad (PBUH) according has "condemned alike the

giver of bribes, and the taker of bribes in deciding cases."

Prophet Mohammad (PBUH) said:

"If a person made a recommendation for anyone in a just manner and gratified party gave him something as a gift (in return for it) and he accepted it, then he committed a grave error (meaning that it, too, is a form of bribery)."

. Prophet Mohammad (PBUH) made this clear, as hesays: "Whoever occupies land belonging to another unjustly will be sunk into the ground along with the plot of land on the Doomsday till he reaches the lowest layer of the earth."

"He who acquires the property of a Muslim unjustly by taking a false oath (before an Officer) is debarred by Allah from entering Paradise and the Fire of Hell is made inevitable for him."

Amana Prophet Mohammad (PBUH) again, is reported

to have warned a person who was very fond of entering into litigation with others in these strong words:

"Remember, he who will obtain the property of another by swearing a false oath will appear as a leper before Allah (on the Day of Judgment)."

Those that are responsive to their Rabb, establish Salat and make binding decisions through sharing resources that has been provided for them they spend out of it.

Amrahum Shuraa Baynahum 42:38

Resources

Guide: National Minority AIDS Council Organizational Effectiveness Series: Board Development

http://www.nmac.org

Learning Objectives

State the role of nonprofit boards Identify the major responsibilities and

obligations of individual board members Identify strategies for strengthening the

board’s composition and structure Explain the working balance between

board and staff members Identify useful tools and resources to

enhance the board’s effectiveness

UNIT 1: Board Roles and Responsibilities

Boards of directors are charged with the legal and fiduciary oversight of

the organizations they govern

KEY ELEMENTS TO A SUCCESSFUL NONPROFIT

BOARDSuccessful leadership is anchored by four components: Mission statement Strategic planning Implementation Assessment

Mission Statement

One of the most important responsibilities of a board is the development and/or revision of a

mission statement with senior staff

Mission statement explains what it does, why it does it, and whom it

serves, as discussed earlier.

Poorly Defined Mission Statement

The Urban Renewal Center is dedicated to increasing a sense of well being for those who have AIDS. Our services offer a compassionate and comfortable environment for mutual support. We also maximize community resources.

Well-Defined Mission Statement

The Urban Renewal Center increases the social support available to those living with HIV and AIDS by offering structured self-help groups and positive communal activities utilizing health care professionals, social service professionals and HIV positive trained facilitators. They coordinate and lead a variety of interventions including recruitment, testing, discussion groups, information & referral services, shelter services and treatment services.

Strategic Planning

Process of determining: What your organization intends to

accomplish (Goals and Objectives) How you will direct the organization and its

resources toward accomplishing the goals and objectives (Activities/Programs)

When you will accomplish goals and objectives (Time Frame)

Strategic Planning

Involves fundamental choices about your organization’s:Mission, goals and vision.Constituency.Role in the community.Programming, services and products.Required resources

What is Strategic Planning?

• Describes goals for the near future and how these goals will be accomplished

• Maps activities that the organization should pursue

• Tool to guide decision-making

BOARD OF DIRECTORSBOARD OF DIRECTORS

Chairman Chairman

Vice ChairmanVice Chairman

Community Community RepresentativeRepresentative

YOUTHYOUTH

Example Board StructureOrganizational Structure

C.E.O.

Project Coordinator

HIV/AIDS PROJECT Project Coordinator

HOUSING PROJECTProject Coordinator

SHELTER PROJECTProject Coordinator

South Africa HIV/AIDS

Chief Program Officer

OPENAdministrative Assistant

Chief Financial Officer

Outreach Coordinator

Open

Open

Open

Open

Open

Open

Open

Open

Open

Open

Open

Chief Administrative Officer

Implementation:The Operational/Work Plan

What- Strategic Plan

How- operational/work plan – Carries out the goals and objectives decided in

the strategic plan. – Prepared by the staff – identifies responsible parties, timelines,

resource allocations, and an evaluation plan

Operational Plan

Objective: Outline the specific tasks that need to be accomplished to achieve the objective within the strategic plan.

Timeline: Include exact dates (months and year) by when each task should be completed.

Responsible parties: Identify who (e.g., staff, board, committee or others) will be held responsible for accomplishing the task.

Why Develop a Strategic Plan?

Improves results organizational performance.

Momentum and focus Problem solving Teamwork, learning and commitment.

Communication and marketing

Assessment

To ensure accountability, the successful board will:

Measure achievements against quantifiable objectives.

Perform a formal review of the ED annually Seek community/client feedback Develop and implement board self-assessment. Create a formal feedback loop for using

assessments to improve the organization.

Unit II Board Duties/Code of Conduct

of the BoardA board’s success is dependent upon the board following a code of standards that

incorporates three fundamental duties: Duty of Obedience Duty of Care Duty of Loyalty

Duty of Obedience

Requires board members to be: Faithful to the organization’s mission. Knowledgeable about the business of the

organization Responsible for the stewardship and

governance of the organization’s legal and fiscal responsibilities, programs and services

Duty of Loyalty

Requires board members to be: Maintain a standard of faithfulness

to the organization– Personal or constituent interests must

be put aside in favor of decisions that are in the best interest of the organization.

Duty of Care

Requires board members to: Monitor financial health and programmatic

accomplishments Be informed/exercise independent judgment Regular attendance at board meetings. Keep informed and asking questions.

Example of Code IssuesExample: If a board member has a relative in the printing business, it would be ethical for that relative’s business to print materials for the organization if: the board knows that the printer is the board member’s relativethe job is bid competitively,so there is evidence that the price and quality are equal to or better than the competition there is no expectation from the family that the organization will guarantee work or use them in the future without competitive bids.

Dealing with Conflicts of Interest

Conflict of Interest: A conflict between one’s obligation to the public good and one’s self-interest

– Board members must reveal any potential conflicts of interest to the board

Legal Responsibilitiesof the Board

To ensure compliance with laws and regulations relating to nonprofit corporations.

To ensure the uses its resources towards fulfillment of its mission as stated in its tax-exempt purpose.

To determine the organization’s mission, strategies and program priorities.

Legal Responsibilities of the Board

Six main documents that the Board should review for compliance toward that effort:

– Articles of Incorporation or Organization– Bylaws– Determination letter (IRS letter establishing

nonprofit status)– Audits– IRS Form 990– Corporate records

Articles of Incorporation or Organization

Developed and submitted to the state agency charged with chartering groups as legal organizations.

Define the purpose of the organization Basic framework for governance. Legal document drafted with the assistance

of an attorney

Articles of Incorporation

Requirements vary state to state, typically only the following information is required as a minimum:Name of the organization.Specific purpose Duration of existence (often perpetuity).Location of officeNumber, names and addresses of the initial board of directorsWhether this is a membership organizationProvisions for distribution of assets if corporation is dissolved.

Bylaws

Operating policies and procedures of an organization an its board of directors

Address terms of office, number, and duties of officers, manner of filling vacancies, board policy, and procedural guidelines

IRS Letter Establishing Nonprofit Status

Indicates non-profit status from the IRS The most important legal document in an

organization To request tax-exempt status, organizations

must submit an application package that includes the articles of incorporation, bylaws, and names of the officers.

Audits

BOD must assure that adequate internal control mechanisms are in place to ensure that the organization is:Uses generally accepted accounting methodsComply with laws and regulationsProvide reliable financial information.Operate effectively and efficiently

IRS Form 990

Form 990: Non profit tax return Explains the mission and program activities

of the organization. Documents income and expenditures over

the year.

Organization Records

Nonprofit organizations must maintain records of all decisions and activities (such as policies and procedures that document their compliance with organizational and tax codes).

Include policy and procedural statements, minutes of board meetings and committee reports.

Adequate and orderly records will facilitates smooth operation of the organization.

3 Ds, Ws, Gs, Ts

3Ds — The duty of care, duty of obedience and duty of loyalty

3Ws — Wealth, work and wisdom.

3Gs — Give, get or get out

3Ts — Treasure, time and talent.

Nine Basic Responsibilities of Nonprofit Boards

1. Determine purpose and establish mission

2. Set policy

3. Communicate mission and achievements to the larger community

4. Maintain organizational integrity and accountability

5. Effectively planning

6. Hire, assess and support the executive director

7. Cultivate resources, raise funds

8. Meet fiduciary responsibilities

9. Recruit volunteers and exercise ongoing self-management

Other Board Responsibilities

Respect Other Board Members-To demonstrate respect for the time commitment all board members volunteer

Respect and Support Staff-It is important for the board to support the ED and staff.

Unit 3: Board Selection Composition

and Recruitment

Board Selection, Compositionand Recruitment

Purpose: To determine needed or desired characteristics of the board before recruiting new or replacement board members.

Learning Objectives:Understand the importance of board composition and structure.Identify strategies for strengthening the composition and structure of the board.Begin to develop a dynamic boardUnderstand importance of a board recruitment and renewal process.

Criteria for Board MembershipPersonal Characteristics to Consider: Ability to listen, analyze, think clearly and creatively

Willingness to prepare for and attend board and committee meetings, ask questions,take responsibility

Ability and desire to develop skills such as fund-raising, recruiting board members and other volunteers, understanding financial statements

Tolerance of and sensitivity to differing points of view and a friendly, responsive and patient approach.

Personal integrity, a developed sense of values, concern for the nonprofit’s development and a sense of humor

Board Composition

The board should: Reflect the diversity of the population

served in terms of age, race, gender, religion, geography, etc

Collectively possess the full range of skills and expertise necessary to perform its role in enabling the organization to fulfill its mission

Composition

1. Constituency-board must reflect the represented population.

2. Skills, Knowledge and Abilities-boards must collectively embody a range of skills.

3. Gender-sensitive to gender equity. 4. Sexual Orientation- increasingly recognizing diversity in

sexual orientation.5. Disease Status- offers an important to prospective 6. Race and Ethnic Background- reflect the racial and ethnic

composition of their constituents.7. Age-added experience and may have more time

UNIT 4:Board Structure: Officers and

Committees

Develop a structure that facilitates good decision-making so that the

board can be effective in carrying out its responsibilities.

Learning Objectives

By the end of this unit, learners will be able to:State board officer positions and responsibilities.Review board committee structure and responsibilities of each.

Board Officer Positions andResponsibilities

The state licensing agency determines the number and type of officers required Most states require three officers: chairperson,treasurer and secretaryMany boards also designate a vice president or chairpersonIf permitted under state law, nonprofit boards may designate only a president and a treasurer

President or Chair

Chairs meetings. Develops board meeting agendas with the

executive director. Creates and staffs committees. Communicates board policy and expectations to

the executive director. Manages board structure and process. Establishes and models the working culture of the

board and the organization. Represents the organization in public forums.

Vice President or Vice Chairperson

Prepared to stand in for the president if the latter is absent

Possess good leadership and communication skills.

President may delegate administrative tasks to the vice president, i.e committee staffing

Treasurer Chairs the finance committee Reviews and certifies the financial reports Prepares spreadsheets documenting revenue and

expenditures over the course of the year Takes the lead in creating financial policies and

procedures Ensures safeguards and compliance with IRS

requirements Represents the organization at IRS audits or other

reviews of the organization’s finances Coordinates with other board members to produce a

strategic plan

Secretary

Prepares minutes of board meetings Requires the ability to take accurate notes,

write well and efficiently deliver minutes

Board Committee Structure andResponsibilities

Boards typically have a number of permanent or standing committees– Address core issues such as staffing or

development– ad hoc committees or task forces to deal with

temporary situations like the need to relocate. Boards should develop methods for

assessing committee effectiveness

Why You Need Committeesand What They Really Do

Board Committees can be helpful in the following cases:Issues are too complex and/or numerous to be handled To recommend policy for approval by the entire boardTo make full use of board members’ expertise, time, and commitment,

Potential Standing Committees

Board Development-responsible for the general affairs of the board.

Nominating Committee- prospective board members

Budget and Finance- Develops budget preparation procedures

Fundraising- leads Marketing-Oversees development and

implementation of the marketing plan Personnel-Drafts and/or revises personnel policies

Other Committees

Program Committee- program development Promotions and Sales- promotes organization’s

services to the community, including generating fees for those services

Public Policy-Stays informed on relevant matters and brings proposals to the table for board positions or organizational activities

Potential Ad Hoc Committees- Audit Plans, ED transition committee, Ethics, Mergers

UNIT 5:Orientation and Training

Unit 5 Learning Objectives

Learning Objectives: List the essential components of a board

manual Give examples of boards’ training events Discuss the orientation process for new

board members State common challenges to sustained

commitment of board members

Orientation for New BoardMembers

Typical orientations include the following elements: Mission, vision and values of the organization Organization’s history Roles/responsibilities of the board and the staff Organizational chart How the board conducts meetings Board manual

Board Manual

Suggested Board Manual Content1. Welcome letter signed by the board president and

executive director2. Corporate and historical documents3. Strategic plan4. Rosters and other board/staff information5. Calendar6. Responsibilities7. Financial Information8. Working tools (to accompany manual)

ED vs. Board

Learning Objectives: State the difference between governance and

management List governance and management responsibilities Discuss the importance of clear boundaries

between the board and executive director

Governance VersusManagement

Board governs- sets policy and mission of organization

Staff manages- implements policy and delivers services

Governance

The board: Defines the executive needs of the organization Develops a job description for ED Hires the ED Communicates the strategic plan and also specific

goals, benchmarks and expectations Establishes an evaluation process for the executive

director, board and organization as a whole Authorizes expenditures necessary to support

operations

Management

ED: Hires, trains and supervises agency staff Reports regularly to the board on general

operations, services, personnel and finances Evaluates organizational needs and presents

solutions and options to the board Develops position descriptions and operational

procedures, based on board priorities and policies Oversees the day-to-day management of finances,

including accounting, tax and audit matters

UNIT 6:Managing Board Change

Key Factors for a Successful Executive Director and Board Relationship

1. Clear Definition of Roles

2. Mutual Expectations

3. Strong and Regular Communication

4. Fundamentals for Strong Partnerships

Factors that Influence Change Transition from Volunteers to Paid Staff

Departure of the Founder

Rapid Growth

Changing Needs

Unexpected Crisis

Learning Objectives

By the end of this unit, learners will be able to:State major areas of concern and assessment

Evaluate methods to measure board effectiveness

UNIT 7:Board Assessment and

Evaluation

Three Areas of Evaluation

Board self-assessment

Evaluation of the executive director

Evaluation of each particular program’s efficacy

The Board Self-AssessmentA board self-assessment provides its members with an opportunity to:Reflect on their individual and corporate responsibilitiesIdentify different perceptions and opinions among board membersPoint to questions that need attentionUse the results as a springboard for board improvementIncrease the level of board teamworkClarify mutual board/staff expectations

Evaluating the Executive Director

Ensures the board is meeting its duty to effectively lead the organization

Ensures organizational goals are being met Ensures continued development of the ED to more

effectively fulfill his/her role Ensures a formal and documented evaluation process that

meets standards of fairness and practicality Ensures the ED values his or her role, is benefiting from it

and, therefore, is more likely to stay Leaves written record of the board’s impression of the

executive director’s performance

Program Evaluation

Programs must be evaluated to decide if the programs are indeed useful

Program evaluation is done by carefully collecting information about a program

may include needs assessments, accreditation, cost/benefit analysis, efficacy, etc.

What is “Founderitis?”

“Founderitis” – when a founder is very resistant to change. Understandably, new ideas may make the founder fear he or she is losing control.

What Makes a Successful Board Member

They are honest They are enthusiastic They keep an open mind They are team players They tackle complex problems with relish They take an orderly approach to decision making They are competent They have a sense of humorFrom: Welcome to the Board by Fisher Howe

“Problem” Board Members Focus on a single issue. Always take the contrarian view Expound on strongly held opinions that are rarely backed up by fact or

research. “Board hop” — sit on many boards, but serve none well. Regularly miss meetings. Not accept or complete tasks. Be motivated by personal agendas. Monopolize discussion or never participate in discussion — except after

the meeting. Treat peers disrespectfully or refuse to cooperate. Betray confidentiality. Fail to disclose conflicts of interest. Fail to understand when it is time to retire and allow others to carry the

torch.

Closing

Board development is crucial to the success of the organization

Strong, but not controlling, boards are necessary to help lead the functions of an organization

Many non-profit centers offer courses for board development