Board Handbook.6

Board Member Handbook

Last Updated: 07/21/11

Developed for SPS Habitat for Humanity by Trudy Soucoup, 2011 Page 2 of 34

Congratulations on your selection as a member of the South Puget Sound Habitat for Humanity’s Board of

Directors! Over the next three years you will impact SPS Habitat’s future and influence fellow members’

experiences. To help you make the most of this opportunity, SPS Habitat developed a Board Member

Handbook to inform and guide you in your highly responsible role.

Table of Contents

Why Be a Board Member? ......................................................................................................................... 4

Section 1 – Who Are We? .......................................................................................................................... 4

A BRIEF HISTORY OF SOUTH PUGET SOUND HABITAT FOR HUMANITY ...................................................................................... 4

MISSION & VISION ......................................................................................................................................................... 5

Section 2 – Board Roles ............................................................................................................................ 5

RESPONSIBILITIES OF A SPS HABITAT BOARD MEMBER .......................................................................................................... 7

BOARD MEMBER JOB DESCRIPTION ................................................................................................................................... 7

RIGHTS OF A BOARD MEMBER .......................................................................................................................................... 8

Section 3 – Board Structure and Practices .............................................................................................. 8

BOARD TERMS OF SERVICE ............................................................................................................................................... 8

POLICIES PERTAINING TO THE BOARD ................................................................................................................................. 9

Section 4 – Board Meetings ....................................................................................................................... 9

Section 5 – Board Committees ................................................................................................................ 10

EXECUTIVE COMMITTEE ................................................................................................................................................. 10

WHAT COMMITTEES DO ................................................................................................................................................ 11

DOCUMENT RETENTION................................................................................................................................................. 11

PROVIDING REPORTS..................................................................................................................................................... 11

Section 6 – Board – Executive Relationship .......................................................................................... 11

ORGANIZATIONAL CHART ............................................................................................................................................... 12

CURRENT STAFF ........................................................................................................................................................... 12

Section 7 – Policy Making Practices....................................................................................................... 12

MY.HABITAT.COM ....................................................................................................................................................... 13

ACCESS TO GOOGLE DOCS ............................................................................................................................................. 13

Section 8 – Planning Practices ............................................................................................................... 13

Section 9 – Fiscal Management Practices ............................................................................................. 14

SARBANES-OXLEY ACT & GOVERNMENT REGULATIONS ....................................................................................................... 14

Section 10 – Fund Development Practices ............................................................................................ 15

Section 11 – Monitoring & Evaluation Practices ................................................................................... 15

WHAT DOES MONITORING AND EVALUATION MEAN? ......................................................................................................... 15

WHAT DO WE MONITOR? ............................................................................................................................................. 15

Section 12 – External Relations Practices ............................................................................................. 16

BOARD MEMBER’S TOOL KIT ................................................................................................................ 17


SAMPLE MEETING AGENDA ............................................................................................................................................ 18

MEETING MINUTES SAMPLE ........................................................................................................................................... 19

YEAR-END REPORT TEMPLATE ........................................................................................................................................ 20

COMMITTEE ORIENTATION MATERIALS............................................................................................................................. 21

SAMPLE COMMITTEE HELP/HINDER LIST .......................................................................................................................... 22

A NOTE ON MEETING MINUTES ...................................................................................................................................... 23

EXPLANATIONS: MYTHS AND MISCONCEPTIONS ABOUT NONPROFIT ORGANIZATIONS ............................................................... 24

LEGAL RESOURCES ........................................................................................................................................................ 25

BOARD AND GOVERNANCE RESOURCES ............................................................................................................................ 26

GENERAL NONPROFIT RESOURCES ................................................................................................................................... 27

BOARD RECRUITMENT & DEVELOPMENT COMMITTEE JOB DESCRIPTION ................................................................................. 28

EXECUTIVE COMMITTEE JOB DESCRIPTION ........................................................................................................................ 28

FINANCE COMMITTEE JOB DESCRIPTION ........................................................................................................................... 28

HUMAN RESOURCES COMMITTEE JOB DESCRIPTION ........................................................................................................... 29

STRATEGIC PLANNING COMMITTEE JOB DESCRIPTION .......................................................................................................... 30

FUND DEVELOPMENT COMMITTEE JOB DESCRIPTION .......................................................................................................... 30

SIMPLIFIED ROBERTS RULES OF ORDER ............................................................................................................................. 31

DOCUMENT RETENTION AND DESTRUCTION POLICY ............................................................................................................ 32


Why Be a Board Member? Everyone comes to board leadership for a different reason. Some want to give back to their community; others are

drawn by their religious calling to help others. Some want to pay-back support they have received from a non-profit

in their past and others feel it is a good way to round out their resume or meet new people in the community.

Whatever reason has drawn you to be a Board member at South Puget Sound Habitat for Humanity, thank you! We

can’t fulfill our mission and vision for our community without active volunteers like you. We hope that this

organization is the right fit for your expectations. We also hope you are ready to give as much as you can to help

more low-income families discover the joy & responsibility of homeownership.

Section 1 – Who Are We?

A Brief History of South Puget Sound Habitat for Humanity

In 1987, Jerry and Cindy Schultz accompanied their teenage daughter to work on a Habitat for Humanity project. They were so inspired by their experience that, by the end of the next year, they founded South Puget Sound Habitat for Humanity with the support and assistance of parishioners from Gloria Dei Lutheran Church, Lutheran Church of the Good Shepherd and the Olympia Christian Reformed Church.

It wasn’t long before members from a number of other local churches joined in. Even so, the group was small, with board members serving in multiple roles, including as committee members, office support and construction laborers. The first couple of projects were modest: constructing an addition on a home for a single mom in Rochester, and putting a new roof on another home whose family was in need. Another project involved moving and renovating a house that would have otherwise been demolished. The home was moved to a large piece of property we’d acquired on Fairview Avenue.

With faith and steady commitment, Habitat continued to add homes to the Fairview site until there were five. An additional property was acquired near Black Lake – now the site of yet another Habitat home. In 1996 our affiliate acquired a large property on Fones Road at a greatly reduced price, thanks to the generosity of long-time Habitat volunteer and owner of the property, Virginia Mattson. The property was large enough to locate 10 homes there – the most ambitious project South Puget Sound Habitat for Humanity had ever taken on. Such a goal required more management attention and oversight than volunteers alone could provide, so our affiliate hired its first Executive Director, as well as a site manager and a resource development officer. In 2000, our affiliate dedicated these 10 new homes, christening the neighborhood, “Covenant Court.” Habitat International co-founder Linda Fuller was on hand to help us celebrate this accomplishment.

In 1999, South Puget Sound Habitat for Humanity acquired additional property in Olympia’s eastside neighborhood. The property, Trinity Court on Miller Avenue, is large enough for six new homes. The first three Trinity Court homes were dedicated in the fall of 2002 and all are now occupied.

The next step for SPS Habitat was The Evergreen Sustainable House. This home won a national award for green building leadership. This is on Brawne Ave. in West Olympia near the Olympia Food Co-op. This home uses many built green practices, such as reclaimed products, cork floors, dyed cement and traditional stucco walls. This home was a precursor for our Fairview project.


In April of 2006 we began work on the Fairview II project. This project uses what is called cottage style zoning, with fifteen homes on a smaller lot, with a shared green in the middle. This project is master planned and built green with both long term health of the families and the environment in mind.

To date, our affiliate has created 34 homes for families’ right here in Thurston County.

In 2002 we acquired Sound Builders ReStore and the Building Materials Drop-Off Site to expand procurement activities and raise funds for house construction.

We continue to grow and build and with the support of the community we will be able to maintain this until we reach our goal of zero poverty housing in Thurston Co.

Mission & Vision

Mission:

The mission of South Puget Sound Habitat for Humanity is to serve God by engaging the community in

empowering people with the hope and opportunity that comes from building and owning their homes.

Vision:

South Puget Sound Habitat for Humanity is a non-profit, ecumenical Christina housing ministry dedicated

to eliminating substandard housing in Thurston County and to making affordable housing a matter of

conscience and action.

We work in partnership with people in need to build and renovate decent, affordable housing.

We invite people of all faiths and no faith and from all walks of life to work with us in partnership building

houses for families in need.

Section 2 – Board Roles

While the role of the Executive Director is to manage the organization, the role of the board is to govern it. Inherent in the board’s governance role are two functions:

1. Protect the Public’s Interest

The first function of the board is to protect the public’s interest. Nonprofits receive preferential tax treatment because they provide a “public” service that would not otherwise be available without subsidy. The board’s job is to represent the public’s interest in assuring that the agency serves effectively.

The board accomplishes this oversight and evaluation function by keeping well informed about the activities of the organization and communicating appropriate information to the public. The board must make decisions that will guide the organization beyond concern for mere survival of the organization, the reputation of board members, or the jobs of employees.

2. Enable the Organization to Achieve Its Purpose


The second function of the board is to enable the organization to effectively and successfully achieve its purpose. To do this, the board has both formal (governance) and informal (helping) responsibilities.

A. Formal Responsibilities

hiring, and (if necessary) firing the Executive Director; delegating the organization’s management functions, including planning, organizing, staffing,

directing, and controlling to the Executive Director; developing and approving strategic plans, including major commitments; assuring the continuity of the organization, making emergency decisions when management

cannot perform, and stepping in when crisis endangers the programs or existence of the agency; and

maintaining the board as a healthy, well-organized governing body capable of helping the organization achieve success (i.e., progress toward fulfilling its purpose).

Board members must wear the formal, governance hat. It is both a legal obligation and a moral responsibility. The reality is that board members also have to provide additional volunteer help if SPS Habitat is to succeed.

B. Informal (Helping) Responsibilities

Every nonprofit organization needs the help of its board in areas such as planning, fund-raising, and community relations. Although these activities must be managed, the Executive Director and the organization will be less effective without the active involvement of the board in these areas.

Unlike the formal responsibilities, which are basically similar in all organizations, the helping responsibilities vary depending on the changing needs of the organization. At SPS Habitat, these responsibilities consist of tasks with which board members can help the staff in order to strengthen the organization. For example, the board can help the Executive Director develop a business plan and a fundraising plan. The key concept here is a partnership in areas managed by the Executive Director. The board’s aim should be to help the staff, not replace, command, undermine, or represent it.

The distinction between formal and helping responsibilities is important. The formal ones, such as hiring the Executive Director or reviewing and approving corporate plans, are responsibilities the board cannot effectively delegate to staff without jeopardizing the long-term interests of the organization.

Helping responsibilities, on the other hand, are those which the board must typically delegate to the staff if they want them to be performed effectively. These activities need to be managed by the Executive Director, but, in many instances, the organization will implement these areas more effectively if it receives help from board members. Clearly, board and staff are partners in much of their work, and will serve the organization best if a “team” attitude can be cultivated from the start.


Responsibilities of a SPS Habitat Board Member

1. Determine the organization’s mission and purpose, including goals, means and primary

constituents served.

2. Select the Executive Director and ensure that the individual has the moral and professional support

necessary to further the goals of the organization, and then periodically assess his or her

performance.

3. Provide proper financial oversight, including developing an annual budget and ensuring that proper

financial controls are in place.

4. Ensure adequate resources.

5. Ensure the legal and ethical integrity and maintain accountability. The board is ultimately

responsible for ensuring adherence to legal standards and ethical norms.

6. Ensure the effective organizational planning, actively participating in the overall planning process

and assisting in implementing and monitoring the plan’s goals.

7. Recruit and orient new board members, and periodically assess the board’s performance.

8. Enhance the organization’s public standing, clearly articulating the mission, accomplishments and

goals to the public garnering support from the community.

9. Determine, monitor and strengthen the organization’s program and services, making sure they are

consistent with the mission and monitoring their effectiveness.

Board Member Job Description

1. Embrace the mission of the organization.

2. Learn – and carry out – the legal responsibilities of the board.

3. Learn enough about the organization to portray it accurately.

4. Attend all board meetings, retreats and special events.

5. Come to board meetings prepared to participate fully.

6. Play a leadership role in at least one committee or task force.

7. Make an annual personal financial gift according to your means.

8. Help with fundraising efforts in whatever way is most appropriate.

9. Serve as an ambassador between the organization and the community.

10. Communicate clearly and respectfully, and support the decisions of the full board.

11. Keep the E.D. informed about concerns in the community.

12. Exercise loyalty and confidentiality in dealings with the board.


13. Support the organization and its officers in times of controversy or crisis.

14. Fulfill commitments on time.

Rights of a Board Member

1. Board members have the right to receive all information that is necessary and relevant to assist them in performing their duties.

2. Board members have the right to call special meetings by submitting written requests and once

requested, a meeting must be held within the 60 days following the organization’s receipt of the written request.

3. Board members may bring court actions to contest activities that affect their rights and duties.

4. Board members have the right to disagree with actions taken at meetings and may ask to have

their disagreement noted in the minutes of the meeting at which the action was taken. Otherwise, they may submit a written dissent to the secretary of the corporation immediately following the meeting. However, board members may not dissent if they voted in favor of the action that was taken. It is important to note that board members who fail to note their dissent either in writing or in the minutes will be assumed to have assented to the board’s action.

Section 3 – Board Structure and Practices

President: Diane Bingaman CPA, Armour Vickerman Past President: Mark Erickson Olympia City Council (ret.) Secretary: Jerry Smith Community Representative Treasurer: Justin Long CPA, Finance Manager, LOTT Alliance President Elect: Suzette Cooper Habitat Homeowner, Community Representative Will Graham Asst. Director, Department of Commerce (ret.) Nathaniel Jones WA State General Administration Jace Munson CEO, Berschauer Phillips Construction Phil Owen Bread & Roses Trudy Soucoup Community Youth Services Paul Taylor Westminster Presbyterian

Board Terms of Service

SPS Habitat Board of Directors Members may serve to up to nine years; your first term plus two renewals.

This is a U.S. Department of Housing and Urban Development (HUD) CHDO Board. To be certified as a CHDO, an organization must meet certain legal and organizational characteristics described in the HOME regulations at 24 CFR Part 92.2.

http://edocket.access.gpo.gov/cfr_2004/aprqtr/24cfr92.2.htm


For more details on how this affects the work we do and the composition of our board, please check the Board Toolkit at the end of this Handbook under Legal Resources.

Policies Pertaining to the Board There are several SPS Habitat policies with which you should be familiar in order to practice due diligence.

The following policies of particular interest to the board can be found on our GoogleDocs site (more

information on how to access is to follow.

Sweat-equity

House Pricing

Family Selection

Conflict of Interest

Construction Safety

Personnel

Anti-discrimination

Record Retention

Mortgage Delinquencies

Financial

Section 4 – Board Meetings

SPS Habitat’s Board of Directors meets at 5:30pm on the third Thursday of every month (except December) at the Habitat offices at 415 Olympia Ave NE, for approximately 90 minutes. Each meeting agenda should include:

1. Roll call and introductions. 2. Review and approval of the consent agenda. 3. Discussion of new business. 4. Confirmation of next meeting time. 5. Meeting wrap-up and review of action items.

All board members are expected to attend a minimum of 10 of the 12 meetings each year. Absences should be communicated to the Board President at least 48 hours prior to the meeting where possible.

A sample meeting agenda and some information on meeting minutes is in the Toolkit for your reference.


SPSHabitat uses a consent agenda.

Using a consent agenda streamlines meetings. All routine items and non-discussion items (i.e. committee reports) should be placed under “consent agenda” on the main agenda. This includes prior meeting minutes, reports, letters or other miscellaneous communications received.

There is no separate discussion of consent agenda items unless so requested by a participant of the meeting.

Discussion items can be placed on the “agenda” under discussion agenda.

Section 5 – Board Committees

Because large group meetings are not the best place to conduct in-depth problem solving and planning, SPS Habitat has developed a committee structure to handle much of its work. Based on what the board deems most important, it determines the number and kinds of committees it needs. Most prospective board members should plan to serve on at least one committee.

Current committees include: Executive, Family Selection, Family Support, Fund Development, Board Recruitment and Development, Site Development, ReStore, Finance, and Faith Relations. SPS Habitat committee terms of service mirror those of regular board member commitments. Many Habitat Affiliates also choose to have a Human Resource/Personnel and Strategic Planning Committees.

Executive Committee

The role of an executive committee, as with all committees, is to help the board accomplish its work in the most efficient way. As the name implies, an executive committee has special responsibilities and authorities above all other committees. The executive committee acts on behalf of the full board. Its main purpose is to facilitate decision making in between board meetings or in the case of a crisis or other urgent circumstances. It also acts as the communication link to the chief executive and performs the chief executive’s performance evaluation. Limits of authority

The role of an executive committee is defined by what it cannot do. To avoid delegating essential powers away from the full board, an executive committee will not:

amend bylaws;

elect or remove board members;

hire or fire the chief executive;

approve or change the budget; or

make major structural decisions (add or eliminate programs, approve mergers or dissolve the corporation).

Members of the executive committee

The board’s officers serve on the executive committee. The board’s chair leads the executive committee. The full board may elect to other representatives to this committee to ensure necessary diversity in decision making and to avoid concentrating too much power in the hands of a few. The size of the


committee should stay relatively small in order to keep it a flexible and efficient tool for the board. The chief executive also serves as an ex-officio member of this committee.

What Committees Do

Our committees are the workhorses of the board. In committees, members can focus their attention and energy on one or two organizational concerns, rather than on every problem and opportunity that comes along. With this structure in place, the board can distribute its governing functions and responsibilities equitably among its members, and thus position itself to maximize its effectiveness. A healthy board delegates consideration of major concerns and issues to the appropriate committees, seeking guidance and direction from them.

If you are selected as a Committee Chair, you are responsible to ensure documentation on all committee meetings is maintained on paper or preferably electronically. All documentation should be emailed to the E.D. within 10 days of a committee meeting. Documentation should include: minutes of each meeting, membership of the committee, objectives and goals of the committee and any decisions that have been made or goals achieved.

Providing Reports There are two key reports that are written by the Committee Chair: monthly minutes and year-end report.

Templates for the reports are in the Appendix for your edification.

1. Monthly Minutes: The minutes of each monthly committee meeting goes to the Executive Director and Staff Liaison. This helps the Executive Director allocate resources and provide strategic direction. In addition, it helps the members determine if additional resources need to be allocated to the committee in the future.

2. Year-End Report: To help next year’s committee build upon your successes, you may wish the Executive Director to record the current committee’s successes and thoughts for future years. If so, you should share this report with the E.D. and Staff Liaison as well, in order to help them prepare annual reports and to recruit members.

Section 6 – Board – Executive Relationship

Although the staff will handle the day-to-day management of the organization, the board must supervise

the staff. The board actually hires and reviews the performance of the Executive Director, and it is

sometimes involved in hiring decisions for other executives. The staff handles other personnel decisions,

but the board should ensure that the organization implements employment policies that are in compliance

with all relevant employment laws.

Document Retention


Organizational Chart

Current Staff

Executive Director: Curt Andino Fund Development Manager: Shannon Michlitsch

Partnership Coordinator: Susan Newman Volunteer Coordinator: Cicily Tatum

ReStore Manager: Caleb White Construction Superintendent: Lenny Halvorson

Office & Finance Supervisor: Kate Trevino

Section 7 – Policy Making Practices

Habitat for Humanity International, for the most part, provides the template for the policies that are necessary to run each affiliate.

SPS Habitat’s Policy & Practice focus is on what’s good for the organization. When policy decisions are made, we ensure it’s in writing to guide future action. As the organization changes, we review policies and update them for relevance.

Board of Directors

Executive Committee

HR Committee (optional)

Finance Committee

Board President

Executive Director

Fund Development

Committee

Public Relations (PR)

Committee (optional)

Event Committees

Other Staff

Faith Relations

Committee

Family Selection

Committee

Family Support Committee

Volunteer Relations


Site Selection Committee

Community Relations


Construction Committee (optional)

Board Recruitment & Development

Committee

Strategic Planning

Committee (optional


Where possible we try to create proactive policies. When a board, staff or committee member believes a policy is needed or needs to be changed to address a situation, they should submit a request in writing where they describe the situation and create several policy options. The E.D. or Executive Committee, if they are supervising a committee, then recommends an option for consideration.

My.Habitat.com

A great resource for board members is My.Habitat.com . My Habitat was created to help affiliates of Habitat for Humanity International, Habitat campus chapters, other Habitat organizations and HFHI staff communicate and share information with each other. Go to the website to register and access information about policies, training, and best practices from Habitat affiliates from around the world.

Access to Google Docs

Curt - Need info added here.

Section 8 – Planning Practices

The board is also responsible for major policy decisions. The board, in partnership with the Executive

Director, is responsible for developing and implementing a strategic vision. These decisions will be made,

of course, with input from the staff, but they should not be left for the staff alone.

Strategic planning is the means of envisioning our organization's future and determining how to get there. It is different than traditional planning because it emphasizes the process in addition to the end product and includes our vision, creativity, values and organizational culture.

Strategic planning is a tool for changing our mode of functioning from "reactive to active." We anticipate, plan and create the future. It stimulates creative thinking about the future. An important benefit of the process is team building that is nurtured by an inclusive process. Strategic planning can:

Stimulate ingenuity and new approaches Increase everyone's investment in the organization Develop a common vision Clarify values and beliefs Anticipate opportunities and obstacles Provide a framework for day to day decisions Create a marketing and fundraising piece

It gives us a road map to follow. The plan is an excellent public relations piece for funders as well as a blueprint for your organization's growth.

The planning process should include a pragmatic action piece that outlines major activities and tasks: with who, what, and when.


Example:

STRATEGY: Recruitment GOAL: Increase youth membership. OBJECTIVE: Increase youth membership by 5% a year TASK: Complete youth recruitment brochure WHO: Program Staff WHEN: By May, 201x

Section 9 – Fiscal Management Practices

The board must pay close attention to the organization's financial resources. Board members should not rely on other members with a better understanding of finances when the budget is presented. You need to understand the budget, ask questions, and challenge assumptions, if necessary. You will also need to help the organization acquire and manage resources. You will not only be asked to approve a fundraising plan but also to participate in stewardship of donors. Whatever the role for specific board members, the board is generally responsible for ensuring the financial health of the organization.

Sarbanes-Oxley Act & Government Regulations

The Sarbanes-Oxley Act (SOX) introduced new standards of accountability on boards of U.S. companies or companies listed on U.S. stock exchanges. Under the Act, directors risk large fines and prison sentences in the case of accounting crimes. Internal control is now the direct responsibility of directors. While nearly all of the provisions of the Act apply only to publicly traded corporations, the passage of the bill served as a wake-up call to the entire nonprofit community. Indeed, several state legislatures have already passed or are considering legislation containing elements of the Sarbanes-Oxley Act to be applied to nonprofit organizations. In many instances, nonprofit organizations have adopted policies and altered governance practices in response to the Act. Please check Section 14 – Board Member Tool Kit for a link to more information.

SPS Habitat aspires to meet the following standards when performing our duties, board members, senior management and members of committees must use the degree of care, skill, caution and diligence that a prudent person would use in handling corporate affairs. Board members are required to make reasonable inquiries when analyzing contracts, investments, business dealings, and other matters. An individual who is acting in conformance with this standard will:

• attend and participate in board meetings on a regular basis; • attend and participate in committee meetings when the individual is a member of the

committee; • diligently read, review, and inquire about material that affects the corporation; • keep abreast of the affairs and finances of the corporation; and • use independent judgment when analyzing matters that affect the corporation.

Board Members may rely on information provided by their employees, committees, attorneys, public accountants and qualified professionals as long as the decision-maker reasonably believes that the information provided is reliable. Board Members must use their own independent judgment when evaluating information. Individuals who fail to meet the prescribed standard may be personally liable to the corporation if their actions cause financial harm.


SPS Habitat’s fiscal year ends June 30. You can find our current IRS Form 990 at: http://www.SPS Habitat.org/about/financials and our current budget on GoogleDocs.

Section 10 – Fund Development Practices

The Fund Development Committee is responsible for working with the Fund Development staff to create

and implement the organization Resource Development Plan, which includes planning fundraising events,

cultivating donors, writing grants on behalf of SPS Habitat, and initiating other fundraising strategies.

It is important for board members to understand that fundraising and fund development are two different

but symbiotic activities. Fund Development is the entire system that raises philanthropic and sponsorship

support for our organization. It is a process that moves in an orderly and logical sequence and includes

preparation, planning, execution, evaluation, measurement and then renewal. Fundraising is quite simply

the act of qualifying, cultivating, and soliciting potential donors for SPS Habitat.

Section 11 – Monitoring & Evaluation Practices

Monitoring progress and evaluating your outputs and processes is key to constantly improving the

performance of our organization.

What does Monitoring and Evaluation Mean?

Monitoring is the routine and systematic collection of information against a plan. The information might be about activities, products or services, users, or about outside factors affecting SPS Habitat or an individual project.

Evaluation is about making judgments about the value of any component part of SPS Habitat or its products, services or benefits, or about the organization as a whole.

What do We Monitor?

Inputs: As well as monitoring expenditure, we monitor other inputs, such as staff and volunteer time & performance.

Outputs: These are specific products or elements of service provided by the organization, such as homes built, funds raised, donor retention, ReStore profits, etc.

Outcomes: These are related to the changes or difference made as a result of our outputs. IE – more families have homes, we are able to expand our reach etc.

Impacts: These are related to longer-term or broader changes. These might be more difficult to monitor on a routine basis.


Section 12 – External Relations Practices

How do we develop and steward relationships with foundation, business, and nonprofit partners?

As discussed throughout this handbook, SPS Habitat faces various types of accountability, including fiduciary, legal, professional, and an obligation to preserve and serve the public good. Consequently, we are subject to the expectations of not only formal authorities but also stakeholders such as our families, the media, the general public, partnering agencies, and donors. While some types of accountability translate into clear expectations for nonprofit activity, for example, filing annual forms with the Internal Revenue Service, preserving and serving the public good can be interpreted in many ways. Therefore, one of the tasks of the board, in collaboration with the E.D., is interpreting the nature of stakeholders’ expectations and weighing the appropriateness of the expectations against our organizational values and mission, the local professional norms, and our own interpretation of the public good. Consequently, we have some discretion in how we manage stakeholder relations.

The board of directors plays a vital role in the organization’s external relations as a boundary spanner between the organization and its environment. The board serves as a two-way link between the two. Our members can serve as both “ambassadors” and “antennas,” positively representing the organization to a wide variety of constituencies and bringing important views, beliefs, and perceptions from those constituencies back to the organization.


BOARD MEMBER’S TOOL KIT


Sample Meeting Agenda

Topic Description Goal & Action Assignment

Consent Agenda February Minutes

Budget Review

Accept or change Board

Development Report/ Update Listen/ Discuss Trudy

Shepherd’s Grove 4 houses or 5 Make decision Mark, Curt

Building on Faith Report/ Update Attend! Paul

Lacey Report Brief Curt

ReStore Updated Policy Accept/ return to

committee

Curt

Committees Term Limits Discuss/ Implement/ Table Mark

New business Next Meeting 4/21/2011

South Puget Sound Habitat for Humanity

Board of Directors Meeting: March17, 2011


Meeting Minutes Sample

Date: Duration: Start Time: Location:

Chair: Secretary:

Attending: Absent :

Visitors:

Time Agenda Item Leader

Discussion:

Outcome:

Action Who When

Time Agenda Item Leader

Discussion:

Outcome:

Action Who When

Next Meeting:


Year-End Report Template Lessons learned purpose and objectives

The objective of this report is gathering all relevant information for better planning and execution of committee

projects and preventing or minimizing risks for future projects.

What worked well—or didn’t work well—either with committee organization or tasks?

What needs to be done over or differently?

What surprises did the committee have to deal with?

What circumstances were not anticipated?

Were the committee goals attained? If not, what changes need to be made to meet goals in the future?

Top 3 Significant Committee Successes

Committee Success Factors That Supported Success

Other Notable Successes

Committee Success Factors That Supported Success

Committee Shortcomings and Solutions

Committee Shortcoming Recommended Solutions

PREPARED BY: .................................................................................................................................................................

Committee Chair

Approved by: [have committee members sign]


Committee Orientation Materials Committee Orientation Checklist At the committee orientation, review the following details:

A. Organizational information: � Mission, vision & values � SPS Habitat’s strategic plan (as it pertains to your committee) � Top priorities for current fiscal year � Program demographics

B. Committee information: � Committee Roster � Committee goals and deliverables � Current budget � Frequency of meetings and modes of communication � Committee operating procedures – Help & Hinder list � Role of committee and chair roles and responsibilities � Resources available

� Training available

C. Individual member goals: � Goals for term of this assignment

D. Performance expectations: � Time commitment � Meeting attendance � Communication with others � Specific duties and responsibilities


Sample Committee Help/Hinder List

HELP HINDER

Being on time (start/end on time) Successful communication:

Listening

Asking questions

Giving feedback—responding

Focusing on the task—sticking to agenda Permission to disagree Allowing people to contribute more than in their functional area Respect—valuing opinions, listening Leave titles behind—everyone equal, no pulling rank Positive body language Be prepared Prioritizing work demand Call for break if needed Need people to speak up Quick consensus—“thumbs up” Chair sits at the head of the table

Negative body language

Falling asleep

Sighing, rolling eyes, looking away

Shaking head no

Looking down and not involved

Lack of enthusiasm Interrupting Saying no before thinking yes Dominating discussion Failure to be on time and prepared Not listening Everyone talking at once Side conversations Smart-alec comments Opinions without facts Taking phone calls within the room Cross talk “Triangling” outside the meeting Stamp collecting—holding onto resentments


A Note on Meeting Minutes The Board President should never be responsible for taking meeting minutes. Doing so will impede their ability to

lead discussion and manage the attendees. That being said, the President is responsible for ensuring minutes are

correctly recorded and distributed by the Board Secretary; therefore, s/he should ensure that these guidelines are

followed:

Minutes are not a verbatim record of a discussion, but they should reflect the decisions made during the

meeting and action items to be performed. This will help the committee maintain records for future

reference.

Minutes should include:

o Place, date and time of meeting

o Name of presiding officer

o Full names of all individuals present and absent

o Approval of the consent agenda items

o Whether a majority is present

o Each motion, in the way it was exactly worded

o Who provided the motion, seconded the motion and the voting results tally

o Rationale related to the motion and major discussion points that directly affect the outcome

o List acceptance of reports, progress on actions taken at previous meetings and appointments to

positions

Final minutes should be distributed to all board members for review within 5 days after the meeting. Within

10 days, the final minutes should be sent to the Executive Director for upload to the intranet.

Action items should clearly define the action to be taken, the deadline for completion, and the individual or

individuals responsible for the action. It may be helpful to make an action-item grid to follow the

assignments from one meeting to the next.


Explanations: Myths and Misconceptions about Nonprofit Organizations

#1. Nonprofit Organizations cannot earn a Profit

Profit means more income than expenses. No organization can operate in the red for very long. The difference

between nonprofit and for-profit organizations is what is done with the profit. Nonprofit organizations use profits

to advance their mission (through their programs). For-profit organizations distribute their profits to their owners;

in a corporation, dividends are paid to stockholders.

#2. Every Nonprofit Organizations Qualifies as a Tax-‘Exempt Organization

Not true. Not all nonprofit organizations are eligible for tax-exemption. The concept of nonprofit is broader than

tax-exempt. For example some organizations such as mutual, self-help entities do not qualify for tax-exempt status (

as a matter of federal law).

#3. Being Tax-Exempt Means that the Organization does not pay any Taxes.

Even if an organization has complete exemption from federal taxes (income, excise, etc.), they still may be

responsible for state and/or local taxes such as: sales, use and property taxes. Nonprofits are also liable for

penalties as payment to government, though not actually taxes.

#4. Nonprofit Organizations Have Fewer Reporting Obligations than For-Profit Organizations The annual information return that most tax-exempt organizations have to file with the IRS is far more extensive

than the tax returns most commercial businesses must file. Several state annual reports (for example if you’re doing

business in more than one state) and the state annual charitable solicitation act reports for those who solicit

charitable contributions.

Source: A Legal Guide to Starting and Managing a Nonprofit Organization, by Bruce R Hopkins.


Legal Resources

1. The Sarbanes-Oxley Act and Implications for Nonprofit Organizations

http://www.boardsource.org/dl.asp?document_id=558

2. U.S. Department of Housing and Urban Development – CHDO Characteristics http://nhl.gov/offices/cpd/affordablehousing/training/web/chdo/characteristics/

3. Soliciting for Charitable Contributions in Washington – An Overview

By Putnam Barber; http://www.tess.org/docs/WA_Solicitations_Overview.pdf

This overview covers the basics of Washington law related to charitable solicitations. It is created to help nonprofit

leaders to become familiar with what's required by nonprofits (& others) who solicit funds from the public in

Washington.

4. The 2009 Washington Nonprofit Handbook

This informative manual is published by Washington Attorneys Assisting Community Organizations (WAACO) and the

King County Bar Association Young Lawyers Division. It provides guidance on many legal issues facing nonprofit

organizations in Washington State.

Available at this link:

http://www.waaco.org/Washington%20Nonprofit%20Handbook_2009.pdf

5. Nonprofit Legal Self-Assessment Checklist

A guide for helping nonprofits to understand common legal obligations and to highlight areas where:

* Greater inquiry should be made for the health of your organization * To address any shortfall now, to avoid a crisis later This checklist will assist you on the road to good legal health and is available at this link.

http://www.waaco.org/for-nonprofits/WAACO%20Nonprofit%20Checklist.pdf

6. Legal Assistance: WAACO

If your organization is unable to afford an attorney but needs legal assistance, please contact WAACO at

[email protected] or 1.866.288.9695, to see if your organization is eligible for pro bono legal services.

7. IRS ABC Site

The IRS has placed a number of related resources for nonprofits in one location. "The ABC's for Exempt

Organizations" offers information to help navigate tax issues including lifecycles, compliance guides, employment

taxes and retirement plans.

http://www.irs.gov/charities/article/0,,id=187787,00.html


http://nhl.gov/offices/cpd/affordablehousing/training/web/chdo/characteristics/

http://www.tess.org/docs/WA_Solicitations_Overview.pdf

http://www.waaco.org/Washington%20Nonprofit%20Handbook_2009.pdf

http://www.waaco.org/for-nonprofits/WAACO%20Nonprofit%20Checklist.pdf

mailto:[email protected]

http://www.irs.gov/charities/article/0,,id=187787,00.html


Board and Governance Resources 1. “Free Complete Toolkit for Boards”

A range of tips, articles and samples on topics related to nonprofit boards. Available as part of Carter McNamara’s

Free Management Library

http://www.managementhelp.org/boards/boards.htm

2. Board Source

An organization that specializes in nonprofit boards – publications, online resources etc. www.boardsource.org

“ Knowledge Center” has links to both free and ‘Members Only’ resources.

3. The Best of Board Café, Hands on solutions for nonprofit boards, by Jan Masaoka

Short, easy to read, practical articles, tips & tools on a wide range of topics. 2003

4. The Board Building Cycle, Nine Steps to Finding, Recruiting, and Engaging Nonprofit Board Members, by Sandra R.

Hughes, Berit M. Lakey, & Marla J. Bobowick, BoardSource, 2000.

A condensed publication with practical information.

5. All Hands on Board by Jan Masaoka

An online publication specifically for Boards of All-Volunteer Organizations. It appears on 2 different links. The

assessment tool appears on pages 14-15.


http://www.blueavocado.org/files/All-Hands-On-Board.pdf

6. “Boards of All-Volunteer Organizations” An online article on this subject.

http://www.blueavocado.org/content/boards-all-volunteer-organizations

7. “What's the Point of a Nonprofit Board, Anyway?”

http://www.blueavocado.org/content/whats-point-nonprofit-board-anyway

8. “Fine-Tuning the Instrument,” Chapter 9, Nonprofit Boards That Work, by Maureen K. Robinson; 2001 A book

with some practical advice on making boards work.

9. 501 Videos – Movie Mondays

Why reinvent the wheel? See how others face the same challenges you do.

http://www.501videos.com/mm2011/03/mm_3_bhats.html?awt_l=A2Y8t

http://www.managementhelp.org/boards/boards.htm

http://www.boardsource.org/


http://www.blueavocado.org/files/All-Hands-On-Board.pdf

http://www.blueavocado.org/content/boards-all-volunteer-organizations

http://www.blueavocado.org/content/whats-point-nonprofit-board-anyway

http://www.501videos.com/mm2011/03/mm_3_bhats.html?awt_l=A2Y8t


General Nonprofit Resources

1. Risk Management Center

Publications, training & tools that focus on managing risks

202-785-3891; http://www.nonprofitrisk.org

2. Idealist.org & The Nonprofit FAQ

An interactive site where people and organizations can exchange resources and ideas, locate opportunities and

supporters, etc. Quality, free information http://www.idealist.org/npofaq

3. Washington Nonprofits

An emerging organization designed to assist nonprofits throughout Washington State.

http://www.washingtonnonprofits.org/

http://www.nonprofitrisk.org/

http://www.idealist.org/npofaq

http://www.washingtonnonprofits.org/


Board Recruitment & Development Committee Job Description

The board management committee ensures that the board is doing its work effectively by focusing on board-specific

goals.

By-law review and assessment of governance needs a) Ongoing review for currency/relevance b) Recommend updates to full board

Nominating committee c) Member assessments d) Analysis of board terms e) Membership development

Member orientation and training Board self-assessment and oversight

Periodically (2 – 3 years)

Executive Committee Job Description The executive committee is responsible for working in support of, or occasionally in place of, the full board. The

functions of the committee are as follows:

Perform policy work f) Carry out specific directions of the board g) Resource for decisions, especially those requiring research h) Take action on policies directed by the full board or permitted by By-laws

Liaison to the Executive Director i) Provide counsel, feedback, and support as needed

Resolve emergency or organizational crises

Finance Committee Job Description

The Finance Committee ensures the organization’s financial stability by providing oversight across all areas of the

organization. The functions of the committee are as follows:

To review

The annual budget prepared by the Treasurer to be submitted to the Board of Directors Review Restricted vs Non Restricted Funds Review Cost of Homes Review Cash Flow

The annual report prepared by the Treasurer

Proposals or contracts that create long-term commitments of the organizations resources and make recommendations to the Board of Directors

Supports the Planning Committees goals with financial expertise

Supports the Family Selection Committee’s application process for selecting a partner family


Review documentation required for the application Review the process of when to review the partner family’s credit and supporting documents

To create and recommend financial guidelines and policies relating to

Mortgage Delinquency Review and update delinquency letters Review options of a partner family’s mortgage when it is 75 days delinquent

Reserve Fund Policy How much? Where to keep the funds? What can we use the funds for?

Obtain Financing Bank Accounts

Checking, Savings, Escrow, Reserve Account Line of Credit

What can we use the line of credit for?

From which bank? Loans

Compliance with terms Vendors

Guarantors on Vendor accounts

Deposit Policy

Preferred Vendors

Check Signing Authority Executive Director maximum amount Annual Review of signature lists for each bank

Financial Reporting Guidelines To oversee

Compliance with state and federal tax and payroll laws

The mortgage process Contract of sale preparation, signing Settlement document preparation and scheduling Mortgage loan review after settlement, reconciliation of mortgage histories, escrow analysis

Short and long-term investments

The annual audit Recommend selection of an auditor Work with the auditor Recommend policies, procedures, and resolves issues based on audit results

Reports to the Board of Directors irregularities, concerns, opportunities

Human Resources Committee Job Description

The Human Resource Committee develops personnel policies and procedures and advises the Executive Director on

personnel policy issues. The functions of the committee are as follows:

Draft and/or revise personnel policies for board approval Review job descriptions Establish salary structures Annually review staff salaries Review benefits package Acts as a grievance board for employee and volunteer complaints and terminations


Strategic Planning Committee Job Description

The planning committee focuses on development and achievement of the goals of the organization. The functions of

the committee are as follows:

Mission, vision, and goals j) Revisit/revise goals annually

Focus on organizational goals, not board goals k) Review mission and vision periodically

Tactical and strategic planning l) Tactical = one year or less m) Strategic = greater than one year (major emphasis of committee) n) Identify strategic challenges and opportunities to the board

Programs and services o) Oversee new program development p) Identify which programs and services will require board oversight q) Review program priorities r) Organizing strategic planning board retreats

Program evaluation s) Identify key indicators for measuring program success

Establish categories/metrics (dashboard)

Fund Development Committee Job Description

The resource development committee ensures that an appropriate resource development strategy is created and

implemented. The functions of the committee are as follows:

1) Establish policies to guide resource generation a) Spell out the responsibilities of staff, the committee, and individual board members not on the

committee b) Monitor fundraising efforts

2) Develop a resource strategy a) Work with staff to establish a fundraising plan that incorporates a series of appropriate vehicles, such as

special events, direct mail, etc. b) Be responsible for involvement of board members in fundraising

3) Implement the strategy a) Take the lead in certain types of outreach efforts


Simplified Roberts Rules of Order

How to do things:

1. You want to bring up a new idea before the group. After recognition by the chair, present your motion. A second is required for the motion to go to the floor for debate, or consideration.

2. You want a motion just introduced by another person to be killed. Without recognition from the chair simply state "I object to consideration." This must be done before any debate. This motion requires no second, is not debatable and requires a 2/3 vote.

3. You want to change some of the wording in a motion under debate. After recognition by the chair, move to amend by

a. adding words, b. striking words or c. striking and inserting words.

4. You like the idea of a motion under debate, but you need to reword it beyond simple word changes. Move to substitute your motion for the original motion. If it is seconded, debate will continue on both motions and eventually the body will vote on which motion they prefer.

5. You want more study and/or investigation given to the idea under debate. Move to refer to a committee. Try to be specific as to the charge to the committee.

6. You want more time personally to study the proposal under debate. Move to postpone to a definite time or date.

7. You are tired of the current debate. Move to limit debate to a set period of time or to a set number of speakers. Requires a 2/3 vote.

8. You have heard enough debate. Move to close the debate. Requires a 2/3 vote. Or move to previous question. This cuts off debate and brings the assembly to a vote on the pending question only. Requires a 2/3 vote.

9. You want to postpone a motion until some later time. Move to table the motion. The motion may be taken from the table after 1 item of business has been conducted. If the motion is not taken from the table by the end of the next meeting, it is dead. To kill a motion at the time it is tabled requires a 2/3 vote. A majority is required to table a motion without killing it.

10. You want to take a short break. Move to recess for a set period of time.

11. You want to end the meeting. Move to adjourn.

Main ideas: o Everyone has the right to speak once if they wish, before anyone may speak a second time. o Everyone has the right to know what is going on at all times. o Only urgent matters may interrupt a speaker. o The members discuss only one thing at a time.


12. You are unsure that the chair has announced the results of a vote correctly. Without being recognized, call for a “division of the house." At this point a standing vote will be taken.

13. You are confused about a procedure being used and want clarification. Without recognition, call for "Point of Information.” The chair will ask you to state your question and will attempt to clarify the situation.

14. You have changed your mind about something that was voted on earlier in the meeting for which you were on the winning side. Move to reconsider. If the majority agrees, the motion comes back on the floor as though the vote had not occurred.

15. You want to change an action voted on at an earlier meeting. Move to rescind. If previous written notice is given, a simple majority is required. If no notice is given, as 2/3 vote is required.

You may INTERRUPT a speaker for these reasons only: o to get information about business - point of information o to get information about rules - parliamentary inquiry o if you can't hear, safety reasons, comfort, etc. - question of privilege o if you see a breach of the rules - point of order o if you disagree with the [president]'s ruling – appeal

You may influence WHAT the members discuss: o if you would like to discuss something - motion o if you would like to change a motion under discussion – amend

You may influence HOW and WHEN the members discuss a motion: o if you want to limit debate on something - limit debate o if you want a committee to evaluate the topic and report back - commit o if you want to discuss the topic at another time - postpone or lay it on the table o if you think people are ready to vote - previous question

Adapted from Case Western Reserve Graduate Student Senate

http://www.cwru.edu/orgs/gradsenate/rules/handbook.html

Document Retention and Destruction Policy

Purpose

The Sarbanes-Oxley Act addresses the destruction of business records and documents and turns intentional

document destruction into a process that must be carefully monitored. SPS Habitat for Humanity recognizes the

importance of eliminating accidental, innocent or intentional destruction of vital documents and for administrative

personnel to know the length of time records should be retained to be in compliance with the Sarbanes-Oxley Act,

IRS requirements, and the highest standards of accounting and business practices.

Policy

It shall be the policy of SPS Habitat for Humanity to comply with the following mandatory minimum document

retention requirements. Further, it shall be allowed that these requirements automatically increase if they are found


to be short of any of the above referenced standards. All documents to be destroyed will be shredded until they are

no longer readable or accessible.

TYPE OF DOCUMENT MINIMUM REQUIREMENT

Accounts payable ledgers and schedules 7 years Annual reports (more than one copy) permanently Audit reports permanently Bank reconciliations 4 years Bank statements, cancelled checks, check registers 7 years Checks (for homeowner escrow, land, critical matters) permanently Claims (after settlement) 7 years Conflict of interest disclosure forms 4 years Contracts, mortgages, notes and leases (expired) 4 years after obligations end Contracts still in effect, including family selection permanently Correspondence (general) 2 years Correspondence (and calendar) of CEO 7 years Correspondence on legal matters permanently Correspondence with vendors 2 years Deeds, mortgages, bills of sale permanently Delinquency letters to homeowners permanently part of their file Deposit slips 2 years Employment applications, including volunteers 3 years Expense analyses and expense distribution schedules 7 years Family selection applications (not chosen) 25 months past decision Family selection applications (in program) permanently General ledgers and journals 7 years Grant records 7 years after the grant ends Incorporation documents permanently


Insurance policies (expired) 3 years after expiration Insurance claims, current policies permanently Insurance policies for homeowners permanently Invoices 7 years IRS Form 990s 7 years (The current form must be available at the affiliate’s office at all times.) IRS I-9 forms on employees 3 years after employment ends Minutes books of board meetings, bylaws permanently Payroll records and summaries 7 years Personnel files (terminated employees and volunteers) 7 years Personnel files (current employees and volunteers) permanently Retirement and pension records permanently Safety reports (OSHA and others) 7 years Sweat equity logs 25 months Tax exemption information permanently Timesheets 7 years Treasurer’s reports (periodic) 3 years Volunteer liability waiver forms 120 days beyond statute (You will need to check your state law.) Withholding tax statements 7 years Workman’s compensation claims 7 years after settlement Year end financial statements permanently

Documents

Board Handbook.6