management of not-for-profit organizations 472.31 3 fall 2014

Management of Not-For-Profit Organizations

472.313

Fall 2014

Done & To Do

Done by today• read chapter on boards (ch 5)

To do today• each group tells us tentative project decision

To do by Friday• pick chapter you want to present on

Group Projects

Tentative Decisions

Boards

have numerous functions₋ some more important than others

• the legal entity held accountable• governance

₋ goals₋ policies₋ managers

• reconciling conflict

Board's Job

• lead the organization• establish policy to guide action• secure [essential] resources• ensure effective resource use• lead and manage Chief Executive performance• ensure and enable accountability• ensure board effectiveness

pg 131-134

Board Competencies

• contextual • interpersonal • analytical • political• strategic

pg 141

“skills required”

Model Board StructureMembers

Board

elect

ChairSecretary Treasurer

Executive Committee

Finance CommitteeNominating Committee

Program CommitteeFundraising Committee

Personnel Committee

Model ResponsibilityMembers

Board

delegate

Executive Director

direct

Staff

manage

Model AccountabilityMembers

Board

Executive Director

Staff

report

report

report

Board's Member's Job

• ensure that• taxes are paid

₋ especially payroll taxes

• laws are obeyed₋ especially employment laws & contracts

• arrangements & contracts with board members are appropriate

• protect people from harm

pg 134-136

Board's Member's Job

• participate actively• attend all bd meetings• prepare in advance• be active on at least 1

committee

• participate in fundraising• be ambassador &

advocate• help enhance image &

credibility of org

• encourage staff• address sensitive

matters in confidence• actively support

• board decisions after they're made

• teamwork of board

• avoid conflicts of interest

pg 134-136

Board Evaluation

an effective board1. organizes itself efficiently & effectively2. attracts able people to the board table3. prepares these people to serve as board members4. helps them work together5. focuses on the important issues & questions6. engages board members attention & commitment7. employs board members' time well8. evaluates and develops its own performance

pg 140

Board Development pg 141-154

define the work;design the board

recruit &select

members

build member capacity

build the

team

ensure strategic

focus

engage members to do

the work

conduct effective meetings

ensureaccountability

Board “fiduciary responsibilities”

• treat the resources of the organization as a trust• What is “a trust”?

• Somebody gives you money.• They say, “Swear an oath that you'll use this money and any

money derived from it to __________________.”• You swear that oath.• You are legally accountable to keep that oath.

• as a board member of a non-profit• there are multiple “somebodies”

• everyone who gives money to the non-profit• the purpose of the money isn’t up to you OR to the giver

• _____________ = the legal mandate of that non-profit

Board “fiduciary responsibilities”

• treat the resources of the organization as a trust• resources used in a manner that is

₋ reasonable₋ appropriate₋ legally accountable

Board Processes

Meetings• Board• Committee• Annual

Paper• Agendas• Minutes• Correspondence• Annual reports• Bylaws• Government documents

₋ Articles of incorporation₋ Annual CRA submission

• Policies

Group Projects

Decisions