The Essential Elements of a Great Nonprofit Board NANCY CASTLE, NGOLD KATHY ROBERTS BLAIR, NIU FOUNDATION Best Practices of GREAT NONPROFIT BOARDS What do you think they are? Best Practices of GREAT NONPROFIT BOARDS Shared vision Clear expectations Orientation and ongoing education are valued Staff is evaluated, valued, and rewarded Resource development is seen as a board responsibility Governance is taken seriously documents and policies are updated Board is focused on critical issues Board members have fun and enjoy each other SOURCE: CHUCK LORING (BOARDSOURCE ) Why People Choose to Serve on Boards: Belief in the organization’s cause/mission (shared vision) Personal experience with the work or mission of the organization (connection) Expectation of the person’s employer Opportunity for gaining/maintaining social status in the community Satisfies socialization needs (FUN!) Leads to new knowledge and skills Enhancing resume Satisfying religious beliefs Source: Perfect nonprofit boards Q: AM I COMMITTED TO THE ORGANIZATION and ITS SUCCESS? SHARED VISION IS ESSENTIAL. What makes a good board member? Passion! For the people served For the cause For the community Contribution Skills (Time) (Talent) Experience (Talent) Contacts Understanding of the community Influence or Affluence (Treasure) What do Board Members Do? Board service can be organized around 3 essential functions Governance Fundraising Community Connection Collaboration and Function One: GOVERNANCE…not sexy but necessary! According to nonprofit corporation law, a board member should meet certain standards of conduct and attention to his or her responsibilities to the organization. Duty of Care Duty of Obedience Duty of Loyalty And now featuring the Sarbanes-Oxley-inspired Duty of Transparency Sarbanes-Oxley and its implications for non-profits (could be a whole other workshop!) Duty of Care Board members must exercise due care in all dealings with the organization and its interest. This includes careful oversight of financial matters and reading of minutes, attention to issues that are of concern to the organization and raising questions whenever there is something that seems unclear or questionable. A director must be informed and discharge duties in good faith, with the care that reasonable people would exercise in similar situations This is not about the decision being a good one, it is about the way the board member carried out his/her responsibility in making the decision Duty of Care (continued) Board makes sure this happens! Your (CHIEF) responsibility: Attend meetings regularly (and review materials before meetings!) Stay adequately informed about the organization Exercise your own good judgment when voting ASK questions when you need clarification Hold staff accountable—the Executive Director is your direct report Staff responsibility Communicate with the Board To orient new staff Provide materials in a timely manner Provide opportunities for professional development and education Duty of Obedience Obedience to the organization’s central purposes must guide all decisions.. Internal – ensure the organization remains true to mission, purpose (e.g., bylaws), and policies External – ensure the organization complies with all laws (e.g., nonprofit, employment, client services) Preserve/protect organization’s nonprofit status Responsibilities (to accomplish internal and external duties) Clear expectations Schedule annual strategic planning or mission review Annual policy review Documents in order and available for review Duty of Loyalty Total and undivided allegiance to the organization in decision making Conflicts of interest, including the appearance of conflicts of interest, must be avoided. This includes personal conflicts of interest or conflicts with other organizations with which a board member is connected. Your responsibility requires that you complete a conflict of interest statement annually and update it throughout the year if circumstances change. Duty of Transparency Boards have an obligation to ensure that their organization is appropriately transparent in its operations. Staff must ensure that the IRS Form 990 is filed on time Your responsibility Approve financial controls Review public documents Ensure that donors have access to information about the prudent and responsible use of resources. Source: Legal Duties (BOARDSOURCE, 2005) Function Two: FUNDRAISING…need not be scary Provide adequate resources through establishment of resource development goals and commitment to fundraising through giving and soliciting (getting) Each Board member should be expected to make an annual contribution according to his/her means Each Board member should take an active role in raising money for the organization. MANY ways to do this! Formulate a fund-raising strategy, including a case statement that includes the rationale for financial support. Your ability to speak about the mission=cultivation It begins with story-telling. Can you tell your organization’s story? “ The telling and hearing of stories is a bonding ritual that breaks through illusions of separateness and activates a deep sense of our collective interdependence.” ANNETTE SIMMONS, LEADERSHIP TRAINER AND STORYTELLER TELL YOUR ORGANIZATION’S STORY by ANSWERING THE FOLLOWING FOUR QUESTIONS: WHY WE WERE FOUNDED? WHO WE SERVE? HOW WE SERVE THEM? WHAT OTHERS CAN DO TO HELP? ” What is your role in building relationships? Host an event at your home Join your Executive Director for a lunch with a prospective donor Introduce your Development Staff to your corporate connections Make personal phone calls to thank donors for their support Write thank you notes Send a personal note to lapsed donors Speak publicly (Chambers/churches/service organizations) about your organization Reach out to your friends and talk about your passion for your organization…invite them to an event. Can you do one of these things? Two? Three? This is development and cultivation! Function Three: COMMUNITY CONNECTION Be a bridge (or buffer) between organization and community Advocate for the organization to business, government, education, and the media to inform them about the organization Join forces with other nonprofits to create a stronger community Develop organizational viability through networking and linkages to the community Community Role and Responsibility Working together to make DeKalb and Sycamore a healthier, happier, safer community Helping the entire nonprofit sector and the broader community DCNP- an important resource! What do we hope you take away from today? RESPONSIBILITY…RESOURCES…RELATIONSHIPS BOARD SERVICE IS IMPORTANT, GRATIFYING (and fun) WORK. WE’RE SO GLAD YOU HAVE VOLUNTEERED TO DO IT! Resources Chuck Loring work for Boardsource Nonprofit Quarterly (Winter 2012) www.boardsource.org