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 sgill@nnr.org

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 sgill@nnr.org– 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) sgill@nnr.orgSource: 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 sgill@nnr.orgSources: 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 sgill@nnr.orgSources: 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 sgill@nnr.orgSource: 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 sgill@nnr.orgSource: 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 sgill@nnr.orgSources: 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 sgill@nnr.org

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 sgill@nnr.org

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) sgill@nnr.org

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) sgill@nnr.org

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) sgill@nnr.org

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 sgill@nnr.orgSource: 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 sgill@nnr.orgSource: 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 sgill@nnr.orgSources: 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 sgill@nnr.org

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 sgill@nnr.org 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 sgill@nnr.org www.nnr.org