Best Practices of High
Performing Nonprofit Boards
Prepared for:
Association of Fundraising Professionals
Nonprofit Board Best Practices
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Peter Drucker suggests all nonprofit
boards remind themselves:
“Membership on this board is not
power, it is responsibility . . . Board
membership means responsibility
not just to the organization but to
the board itself, to the staff, and to
the institution’s mission.”
Nonprofit Board Best Practices
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To whom is the board responsible?
What are the board’s
responsibilities?
What qualities are needed on a
high-performing nonprofit board?
How does an effective board
operate?
How does a board assess its value?
Nonprofit Board Best Practices
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To whom is the board legally
responsible?
Who determines what is in the
public’s interest?
Nonprofit Board Best Practices
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What are the board’s
responsibilities?
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The organization’s mission
Ensuring, developing and conserving
the organization’s resources
Management oversight and
organization assessment
Outreach - a bridge and buffer between
organization and its stakeholders
Nonprofit Board Best Practices
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What qualities make up a high
performing nonprofit board?
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Wisdom
Work
Wealth
Nonprofit Board Best Practices
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Wisdom
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Knowledge of mission
Knowledge of organization’s value to
the larger community
Perspective reached through
experience with similar organizations
and issues
Nonprofit Board Best Practices
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Work
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Motivation to apply oneself to the tasks
required to achieve the mission
Skills needed to competently complete
the tasks required to achieve the
mission
Nonprofit Board Best Practices
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Wealth
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Ability to give or get money for the
organization’s mission
Motivation to give or get money for the
organization’s mission
Nonprofit Board Best Practices
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Essentials for Effective Boards:
 Climate of trust and candor
 Good meeting management practices
 Recognition of Chief Executive’s role
 Documentation of board’s and board
member’s roles and responsibilities
 Pays attention to talent needs and composition
 Encourages its own development
 Assesses its own effectiveness
Nonprofit Board Best Practices

Assesses its own effectiveness:
 Why does board matter beyond its legal and
symbolic functions?
 What is working well?
 What needs attention or improvement?
 What performance measures demonstrate
improved board performance or effectiveness?
 What can we do to improve the board’s
performance and effectiveness?
Nonprofit Board Best Practices

Essentials for Effective Boards:
 Climate of trust and candor
 Good meeting management practices
 Recognition of Chief Executive’s role
 Documentation of board’s and board
member’s roles and responsibilities
 Pays attention to talent needs and composition
 Encourages its own development
 Assesses its own effectiveness
 Prepares its staff and volunteer leaders for
their roles
Nonprofit Board Best Practices
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Summary:
 Nonprofit boards are responsible to:
________________________________
 Nonprofit boards are responsible for:
________________________________
________________________________
________________________________
________________________________
 Boards should be made up of people with:
________________________________
________________________________
________________________________
Nonprofit Board Best Practices
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Summary—Essential Practices of Effective Boards
(cont’d.):
 Climate of trust and candor
 Good meeting management practices
 Recognize chief exec’s role
 Know board and board member’s roles and
responsibilities
 Attentive to talent needs and board
composition
 Encourage their own effectiveness
 Prepare staff & volunteer leaders for their roles
Nonprofit Board Best Practices

Peter Drucker suggests all nonprofit
boards remind themselves:
“Membership on this board is not
power, it is responsibility . . . Board
membership means responsibility
not just to the organization but to
the board itself, to the staff, and to
the institution’s mission.”
Board Assessment from Nonprofit Best Practices
Function
1. Define and advance the organization’s mission, and regularly evaluate the
organization’s programs and activities within the context of its mission.
2. Ensure that adequate financial resources are secured to support the
organization.
3. Ensure that the organization’s current revenues are stable, and encourage
the cultivation of sources of revenue that are sustainable for the long term.
4. Provide financial oversight by ensuring that income is managed properly and
that financial statements are accurate, intelligible, comprehensive, and timely to
reflect the true financial condition of the organization and key financial
transactions.
5. Select, support, develop and regularly review the performance of the chief
executive officer consistent with the prior expressed expectations articulated by
the board.
6. Ensure effective organizational planning by participating with the staff in an
on-going overall planning process that produces clear, measurable and
attainable goals for the organization.
7. Monitor the organization’s performance and its progress against the established
goals.
8. Recruit, orient and develop a board of directors that seeks to contribute to the
organization’s mission beyond its legal and symbolic purposes, and is willing to
evaluate its own performance.
9. Enhance the organization’s public standing through its transparency, integrity and
accountability.
10. Engage in public outreach on behalf of the organization by interpreting the
needs of the community to the organization, promoting the needs and services
of the organization to its stakeholders, and promoting the organization to donors
and potential donors.
Good/N
o
Problem
Could Be
Better
Individual Board Member Self Assessment
Work & Wisdom
1. Meeting attendance (1 pt./meeting)
Available
Points
6
2. Participation in/attendance at XYZ activities, i.e. Annual
Dinner, new program launch, etc.
(1 pt./activity)
Unlimited
3. Serve on and actively engage in the deliberations and
activities of a XYZ working committee (1 pt./committee)
Unlimited
4. Chair a XYZ committee or special initiative
(2 pts./leadership activity)
Unlimited
Wealth
5. Personal or company gift to XYZ (2 pts./$1,000 given)
Unlimited
6. Assistance with setting up or making a development call
with XYZ staff (1 pt./call)
Unlimited
7. Contribution to XYZ as a result of board members
assistance (2 pts./$1,000 given)
Unlimited
8. Provide in-kind Professional Services (1 pt./service
provided)
Unlimited
Total
Points
Points
Comments
Individual Board Member Self Assessment
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Establish a point system to annually evaluate individual board member’s
level of engagement.
Each member is to complete the self-evaluation before each cycle of the
Governance/Nominating Committee activity.
Completion and submission of the self-evaluation is required in order to
remain a member in good standing of the board.
The Nominating Committee Chairman will review the self-evaluations and
talk with any members who have not obtained at least X points during the
previous year to determine if the individual wants to continue serving on
the Board.
Board members are encouraged to obtain at least X performance points in
line with the evaluation criteria.
Board members earning X points or more more will be recognized
annually.
Anticipating extraordinary personal or professional circumstances, a
member may request “in-active status” in writing and be excused from the
expectations outlined.
The Nominating Committee should annually review the expectations and
system and make adjustments, as required.
Individual Board Member Self Assessment
Available
Points
Average
Mean
6
3.8
3
2. Participation in/attendance at XYZ activities, i.e. Annual
Dinner, new program launch etc.
(1 pt./activity)
Unlimited
2.5
3
3. Serve on and actively engage in the deliberations and
activities of a XYZ working committee (1 pt./committee)
Unlimited
2
2
4. Chair a XYZ committee or special initiative
(2 pts./leadership activity)
Unlimited
2.7
0
5. Personal or company gift to XYZ (2 pts./$1,000 given)
Unlimited
5
3
6. Assistance with setting up or making a development call
with XYZ staff (1 pt./call)
Unlimited
3
2
7. Contribution to XYZ as a result of board members
assistance (2 pts./$1,000 given)
Unlimited
1.8
0
8. Provide in-kind Professional Services (1 pt./service
provided)
Unlimited
1.5
1
Total
Points
22.3
14
Work & Wisdom
1. Meeting attendance (1 pt./meeting)
Wealth
Nonprofit Board Best Practices
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Assesses its own effectiveness:
 Why does board matter beyond its legal and
symbolic functions?
 What is working well?
 What needs attention or improvement?
 What performance measures demonstrate
improved board performance or effectiveness?
 What can we do to improve the board’s
performance and effectiveness?
Nonprofit Board Best Practices
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Your turn:
 Questions
 Comments
 Discussion