2014 npd develop and maintain an engaged nonprofit board of directors

Develop and Maintain an Engaged Nonprofit Board of DirectorsNational Philanthropy Day – AFP Westchester

November 7, 2014

Agenda

• Review Board of Directors members’ responsibilities and legal obligations

• Traps to avoid

• Be aware of how to recruit and engage an active and knowledgeable Board

• Discuss key motivation techniques related to fiscal responsibility and fundraising

• Your responsibility

(c) Accreditation Guru, Inc. 2014

Expectations

• Interactive discussion

• Share experiences

• “Vegas rules”

• Feel free to Tweet…

• @AccreditGuru


Board Members’ 10 Basic Responsibilities

1. Determine the organization’s mission and purpose

2. Select the chief executive

3. Provide proper financial oversight

4. Ensure adequate resources

5. Ensure legal and ethical integrity and maintain accountability

6. Ensure effective organizational planning


Board Members’ 10 Basic Responsibilities

7. Recruit and orient new Board members and assess Board performance

8. Enhance the organization’s public standing

9. Determine, monitor and strengthen the organization’s programs

10.Support the chief executive and assess his/her performance

- BoardSource


Board Members’ Legal Obligations

• Duty of Care• Using your best judgment

• Actively participating, paying attention

• Asking pertinent questions

• Duty of Loyalty• Avoiding conflicts of interest

• Putting aside personal and professional interests

• Duty of Obedience• Staying true to the organization’s mission

• Obeying the law, both public and organizational


Traps to Avoid

Board’s failures:

• Weak recruitment, orientation, on-boarding of new members

• Not having strong governance policies in place

• Not managing personal issues or special cases, which can impact governance process

• Not knowing what is expected of them

• Not agreeing to what is expected of them


Traps to Avoid

New Board member’s failures:

• Not embracing the nature of teamwork

• Lack of understanding of legal obligations

• Assuming fundraising is the responsibility of more experienced members


Starting off on the Right Foot

• Recruit strategically

• Orientation

• Term limits

• Bylaws

• Conduct Board assessments on a regular basis

• Focus on Board culture

• Set expectations!


Assessment

• Before recruiting new members

• Characteristics and professional qualifications

• Create a Board profile

• What we have vs. what we need


Recruitment

• Set expectations

• Prospect research and list

• Recruitment documents

• Board member outreach

• Not just the responsibility of the CEO


Ongoing Recruitment

• Advisory committees

• Donors

• Volunteers

• Local nonprofit support organizations

• United Way, Nonprofit Westchester

• Online resources


Selection

• Professional knowledge and willingness to share

• Availability

• Influence

• Motivation

• Interpersonal skills


Orientation

• Other Board members, Board culture and governing rules

• Staff responsibilities and accomplishments

• Programs, sites and budget

• Major events & other fundraising activities

• Board Manual

• Other member as a mentor


Opportunities for Growth

• Training

• Governance

• Agency programs

• Industry trends

• Financial report understanding

• Networking


Function Strategically

• Maintain focus on the mission….always!

• Any gaps between what we claim we are and what actual performances/actions demonstrate?

• Roadmap to the future…keep eye on the horizon

• Where should we rank at the top?

• Most important legacy of current Board in 5 years

• Lessons learned from other nonprofits? ( or )

• How act differently if a for-profit organization?


Board’s Responsibility

• Identify potential donors

• Respond to requests from staff for help soliciting support

• Set strong example by making personal gift

• Annual giving campaign

• Any special fundraising campaign

• Thanking donors


Your Responsibility

• Provide timely orientation

• Ensure best meeting management practices

• Handle difficult or rogue members effectively

• Responds to questions and concerns

• Encourage feedback and open discussion

• Be an organization of which all can be extremely proud


Your Responsibility - Education

• Skills and expertise to support the organization and staff

• Legal and ethical responsibilities

• Programs

• Mission fulfillment

• Fundraising


Help Them…Help You!

• Most Board members don’t know how to fundraise

• Most Board members are afraid to fundraise

• Fundraising is about giving people a change to partner with you; not about “hitting people up for money”

• Get your Development Officer involved!


Help Them…Help You!

• Explain why their giving is important

• Board members need to agree to expectations

• Have one member ask others

• Try a deadline….with reminders

• Acknowledgement and thanks

• Show the outcome / positive impact of their efforts and gifts


Talking Points

• Personal advocate for the nonprofit

• Elevator speech

• Interesting stories

• Statistic (or two) regarding impact / outcomes

• Not just a one time training, needs to be reinforced


Cohesiveness of Board


• Exceptional …GOAL!

• adds significant value, engaged, thinking strategically, communicate well with each other

• Responsible• quorum, follow the bylaws, some strategic

conversations

• Functional• manage to meet, but decisions not very effective

or focus on low priority items

• Dysfunctional • dramatically disengaged or apathetic members or

intense conflict

An Engaged Board

• Volunteer Board = key to a nonprofit’s success

• Best Board members tend to be busy and used to rolling up their sleeves and getting things done

• Access to information

• Gauge progress of efforts (update on goals)

• Variety of opportunities to get involved


An Engaged Board

• Simply attending meetings ≠ engagement

• Tell them about challenges as well as successes

• Conduct periodic surveys

• Create a Board of Director’s handbook

• Engage your Board in your organization's activities

• Try a Board retreat


Engaged with Fundraising

• Set expectations during recruitment phase

• Add to Board member job description

• Make sure they LOVE your organization

• Make sure they KNOW your organization

• Understand fiscal side of things

• Training re: the art of the “ask”

• Thank them and celebrate successes

• Board Chair active leadership


Personal Contribution

• Policy to guide personal giving

• Make a meaningful or “stretch” amount

• Give/get approach

• Top 3

• Report Board giving rates with donors


Benefits of Valuing Diversity

• A variety of skills, perspectives, backgrounds, and resources

• Remain relevant, effective, and grounded in the needs of the community

• Grantmakers are increasingly focused on diversity

• Attract diverse donors


Benefits of Valuing Diversity

• Enhance equality and fairness throughout the organization and set a positive example and tone for the organization

• Prevent the inherent near-sightedness and “group think” that comes with homogeneous Boards

• Diverse Boards can heighten a charity’s credibility


Age Diversity

• Board members often recruit members from their own circles of influence

• Preference for a “C-Suite” or corporate officer type profile on the Board

• Skepticism about the need to have younger generations on Boards

• Uncertainty of where to find younger Board members

• Concerns of isolation


Discussion Questions

• How diverse are our revenue streams and are they appropriate to our mission?

• What is our contingency plan if a major donor or source of revenue no longer existed?

• What are the expectations for Board members’ involvement in fundraising?

• Are Board members involved in identifying and cultivating major donors and other funders?

• Is a goal of 100% Board giving an appropriate goal for our agency?


Accountability and Measuring Success

• Effectiveness in which the long-term strategic plan is being met

• Fulfillment of the Board’s fiduciary responsibilities & fundraising goals

• Functioning in strategic manner

• Maintain loyalty to the organization


Keep in Mind….

• Provide training

• Seek feedback

• Relationships take time

• Maintain focus on the mission

• Engage your Board in your organization's activities

• Volunteers


Resources

• www.BoardNet.org• www.VolunteeerMatch.org• Accreditation Guru blog• Taming the Troublesome Board Member

Katha Kissman (2006)

• The Board Chair HandbookMindy R. Wertheimer (2008)

• Navigating the Organizational LifecyclePaul M. Connolly (2006)

• Ten Basic Responsibilities of Nonprofit BoardsRichard T. Ingram (2009)


http://www.boardnet.org/

http://www.volunteeermatch.org/

Social Media Connections

“Like” us on Facebook https://www.facebook.com/AccreditationGuruInc

Follow on Twitter @AccreditGuru

Connect on LinkedIn Jennifer Flowers, MBA

Sign up for “Prepare for Greatness” bloghttp://accreditationguru.wordpress.com/


https://www.facebook.com/AccreditationGuruInc

http://accreditationguru.wordpress.com/

Thank you!!

Jennifer Flowers, President

www.AccreditationGuru.com

212.945.8504

[email protected](c) Accreditation Guru, Inc. 2014

http://www.accreditationguru.com/

mailto:[email protected]

2014 npd develop and maintain an engaged nonprofit board of directors

Government & Nonprofit