Board Basics for Beginners
Presented by
Sandy Gill, Director
Northwest Nonprofit Resources
Saturday March 20, 2010
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Topics We’ll Cover
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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
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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.
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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 leaders
PO Box 9066; Spokane WA 99209
509-325-4303
sgill@nnr.org
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Source: What's the Point of a Nonprofit Board, Anyway? By Jan Masaoka
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http://www.blueavocado.org/content/whats-point-nonprofit-board-anyway
Mission Reasons for Boards
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Demonstrate a sense of ownership in a nonprofit
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Work hard to help their organizations succeed
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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 leaders
PO Box 9066; Spokane Wa 99209
509-325-4303
509-325-4260(f)
sgill@nnr.org
Source: What's the Point of a Nonprofit Board, Anyway? By Jan Masaoka
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http://www.blueavocado.org/content/whats-point-nonprofit-board-anyway
4 Types of Board Responsibilities
Mission & Program
 Financial
 Legal
 Structural
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Board Responsibilities - Mission & Program
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Assure current mission & purpose (1)
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Assure effective organizational planning (6)
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Enhance organization’s public standing (8)
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Determine, Monitor, Strengthen Programs (9)
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: Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009; BoardSource
Board Responsibilities - Financial
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Provide Proper Financial Oversight (3)
– Assist in developing the annual budget; monitor
– Ensure that proper financial controls are in place
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Ensure Adequate Resources (4)
– Provide adequate resources for the organization
– In partnership with staff raise funds from the community
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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 leaders
PO Box 9066; Spokane Wa 99209
509-325-4303
sgill@nnr.org
Sources: Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009; BoardSource
Board Responsibilities - Legal
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Care:
– To exercise reasonable care when making decisions for the
organization
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Loyalty:
– To be faithful to the organization’s mission
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: The Legal Obligations of Nonprofit Boards: A Guidebook for Board Members by Jacqueline Covey Leifer
and Michael B. Blomb, BoardSource
Board Responsibilities - Legal
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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 leaders
PO Box 9066; Spokane WA 99209
509-325-4303
sgill@nnr.org
Source: The Legal Obligations of Nonprofit Boards: A Guidebook for Board Members by Jacqueline Covey Leifer and
Michael B. Blomb, BoardSource
Board Responsibilities - Structural
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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.
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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 leaders
PO Box 9066; Spokane Wa 99209
509-325-4303
sgill@nnr.org
Sources: Welcome to the Board: Your Guide to Effective Participation by Fisher Howe, 1995
Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009
Individual Board Member Qualities:
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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.
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Competence: In their areas of expertise, experience, and/or
perspective.
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Enthusiasm: Eagerness for the cause of the organization
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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
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Board Handbook: resources all in 1 place
– Governing documents
– Policies, procedures
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Job Descriptions: Tool for Understanding, Clarifying
Expectations
– Board Members,
– Officers,
– Committees
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
Accountability
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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).
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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 leaders
PO Box 9066; Spokane Wa 99209
509-325-4303
509-325-4260(f)
sgill@nnr.org
Accountability – Your Role
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Record & Abide by Policies for Board Operations:
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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 leaders
PO Box 9066; Spokane Wa 99209
509-325-4303
509-325-4260(f)
sgill@nnr.org
Board Operation: the mechanics of being
a board
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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 leaders
PO Box 9066; Spokane Wa 99209
509-325-4303 509-325-4260(f)
sgill@nnr.org
Ten Steps of Board Recruitment &
Retention
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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.org
Source: The Board Building Cycle, BoardSource, 2000.
Boards of All-Volunteer Organizations
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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.org
Source: 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 leaders
PO Box 9066; Spokane WA 99209 509-325-4303
sgill@nnr.org
Sources: 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 leaders
PO 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
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Legal Resources
Board and Governance Resources
General Nonprofit Resources
Prepared by Sandy Gill, Northwest Nonprofit Resources
A Resource Center for nonprofit organizations and their leaders
PO Box 9066; Spokane WA 99209 509-325-4303 sgill@nnr.org
www.nnr.org