The Invisible Yellow Line™
Clarifying Board and Staff Roles
Presented by Jean Block
Jean Block Consulting, Inc.
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About Your Presenter
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More than 45 years in nonprofit sector as board and staff leader.
Author:
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2015 Jean Block Consulting, Inc.
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The Invisible Yellow Line: Clarifying Board and Staff Roles
The Nonprofit Guide to Social Enterprise: Show Me The
(Unrestricted) Money!
FUNdraising! 180+ Great Ideas to Raise More Money
The ABCs of Building Better Boards
Fast Fundraising Facts for Fame & Fortune
Jean Block Consulting, Inc. since 1996. Albuquerque NM.
Social Enterprise Ventures LLC since 2006.
www.jblockinc.com
www.socialenterpriseventures.com
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The Invisible Yellow Line™
Football?
Really?
What does football have to do with board and staff roles?
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The Invisible Yellow Line™
• It’s invisible …
• It moves …
• It can be hotly contested …
• Neither team can actually see it …
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Different Teams, But Same Goals
Football? Win the Game
Your Organization? Serve the Mission –
Everybody Wins
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The Basics
Board = Policy, Strategic Direction
Staff = Management, Administration
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Definitions
• Governing Board: Ultimate legal responsibility and authority.
• Advisory Board: Usually no governance responsibility or
authority.
• Working Board: Same ultimate legal responsibility and authority
in addition to hands-on responsibilities.
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The Board’s Basic
Governance Responsibilities
What The Board Should Know
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The Board’s Basic Governance Responsibilities
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Has ultimate legal responsibility for effective governance of the organization.
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IRS Form 990 Guidelines (www.guidestar.org)
Ensures the organization meets its mission and purpose.
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Mission-centered decisions
“Re-invents” itself via term limits to ensure appropriate skills and leadership.
Members bring varied perspectives but do not advance personal issues
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Conflict of interest
Follows bylaws.
Has board policies and procedures.
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The Duties
Duties of Care, Loyalty and Honesty
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The Duty of Care
• Duty of Care
• Must act as a “reasonably prudent person would act…”
• Must come to meetings educated about the issues and prepared to act
responsibly. This means TIME!
• Consider an annual Commitment Letter to reinforce the importance of
this and other board responsibilities.
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The Duty of Loyalty
• Duty of Loyalty
• Ensures no conflict of interest in decision making.
• Puts the goals of the organization before personal goals.
• Discloses all conflicts of interest or potential conflicts of interest (IRS
Form 990).
• Speaks with one voice, supports the majority.
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The Duty of Honesty
• Duty of Honesty
• Ensures that the organization follows bylaws and all regulatory
requirements in governance matters.
• Reviews and ensures all filings are current and accurate (990, state and
federal).
• Ensures compliance with tax-exempt rules (lobbying, etc.)
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The CEO’s Basic
Governance Responsibilities
The Staff Leader’s Responsibilities
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The CEO’s Basic Governance Responsibilities
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Carries out board-directed policies, strategies, in partnership with the board..
Manages day-to-day operations of the organization.
Provides regular feedback to board re: organization’s execution of goals.
Supports board with information required to assist it in governance and strategic
direction.
Communicates, communicates, communicates…
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Reinforcing the Yellow Line - the CEO’s report
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The CEO’s Basic Governance Responsibilities
• Management and oversight of compliance with regulatory bodies, etc.
• Management and oversight for filing of reports to granting agencies in a
timely manner, etc.
But the board has ultimate legal responsibility for governance!
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The Board’s Basic Human
Resources
Responsibilities
Walking a Fine Line…
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The Board’s Basic Human Resources
Responsibilities
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Hires and supervises the CEO…only!
Develops the job description for CEO.
Evaluates CEO performance based on agreed-upon goals and objectives.
Is not involved with staff below CEO…unless…
Does not get involved in day-to-day human resources management.
Oversight - HR policies are current.
Understands and abides by grievance policy, whistle blower policy and other
organizational policies (such as confidentiality).
Plays a “partner” role with the CEO…it takes both teams to serve the mission.
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The CEO’s Basic Human
Resources Responsibilities
Holding the Yellow Line
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The CEO’s Basic Human Resources Responsibilities
• Has annual goals and objectives approved by the executive committee or
full board.
• Hired by the board…reports to the board…has a clear job description.
• Is evaluated annually (or more often).
• Attends board and committee meetings as a non-voting advisor.
• Hires, evaluates, manages all other staff.
• Trains staff in policies, procedures, compliance, etc.
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The Board’s Basic Fiscal
Responsibilities
Paying Attention to the Bottom Line
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The Board’s Basic Fiscal Responsibilities
• Has ultimate legal authority and responsibility for fiscal accountability and
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effective fiscal management.
Approves and ‘owns’ a reasonable and achievable annual budget.
Authorizes and reviews the annual independent audit.
Reviews the annual IRS Form 990 before it is filed.
Keeps professional minutes of board meetings.
Understands and reviews regular financial reports.
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The CEO and Staff’s Basic
Fiscal Responsibilities
Policies, Procedures and Controls
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CEO and Staff’s Basic Fiscal Responsibilities
• Prepares annual budget for board acceptance.
• Coordinates the annual audit process.
• Ensures fiscal management, policies, procedures are up to date and
followed.
• Provides internal training and resources for sound fiscal management.
• Manages and reports actual vs. budget expenses and revenues.
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The Board and Planning
Preparing the Roadmap
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The Board and Planning
• Schedules the annual strategic planning session ( in partnership with CEO
and key staff).
• Annual plan drives work of board, board committees and entire
organization.
• Approves and monitors development plan, marketing plan, program plans,
etc.
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CEO and Staff and
Planning
Following the Roadmap
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CEO and Staff Planning
• Participates in annual strategic planning process (key staff).
• Develops development plan, marketing plan, etc. for board approval.
• Regularly evaluates key programs, services, fundraising, policies, etc. to
enhance effectiveness and outcomes.
• Reports progress to board regularly (formatting the meeting agenda).
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The Board and Resource
Development
Setting the Example by Giving and Getting
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The Board and Resource Development
• Every member makes an annual personal or professional financial
contribution.
• Members agree to develop financial and in-kind resources within their
spheres of influence.
• Assists with and supports fundraising events and activities.
• Reviews budget, outcomes of fundraising plan and events.
• Resource: Menu of FUNdraising Opportunities (www.jblockinc.com)
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CEO/Staff and Resource
Development
Measuring and Monitoring
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CEO/Staff and Resource Development
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Has day to day responsibility for fundraising, systems, reporting.
Ensures compliance with state and federal regulations and restrictions that affect
recognition, reporting, fundraising systems, etc. (IRS publications 598 and 1771)
Develops a diverse development plan for board approval.
Supports board fundraising efforts with training, encouragement.
Reports actual vs. budget in all fundraising activities to the board.
Resource: FUNdraising! 180+ Great Ideas to Raise More Money @ Amazon.com
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Defining the Invisible
Yellow Line
Coaching and Talking
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Defining the Yellow Line
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Board Member Job Description clarifies expectations.
• Annual communication.
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Board and staff leadership
Board and staff committee liaisons
• Respect for each other’s roles and responsibilities.
• Open, honest communication and feedback.
Adopt the Invisible Yellow Line !
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Resource – Hot Off the Press!
The Invisible Yellow Line™
Published by CharityChannel Press
Also available at Amazon and Barnes & Noble
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Thank You
Visit my website for ideas, sign up for free e-newsletters,
forms to copy and more:
www.jblockinc.com
Email Me
jean@jblockinc.com
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