principles and practices for nonprofit excellence
TRANSCRIPT
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Principles and PracticesFor Nonprofit Excellence
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The Nonprofit Sector
1996-2005, 501c3 nonprofits increased by 50% to 1.5 million
Religious/education institutions and programs receive 46% of the sector gifts
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Nonprofits in the State of Texas
1998-2008, number of organizations increased 44%
2008, population in Texas: 24.3 million people One nonprofit for every 242 people
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The Nonprofit Board’s Legal and Ethical Obligations
Public Trust
Created for public philanthropic purposes
Standards of Conduct
Duty of Care
Duty of Loyalty
Duty of Obedience
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Duty of Care
Go to meetings
Take responsibilities seriously
Read and understand documents
Ask questions
Know what organization does and how well
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Duty of Loyalty
Disclose any conflict of interest
Focus on the organization’s best interests
Maintain confidentiality
Maintain loyalty
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Duty of Obedience
Safeguard the mission
Maintain public trust
Manage operations and resources
Assess effectiveness regularly
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Effective Governance
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Board Responsibilities
Provide leadership and strategic direction
Set policy actively and ensure adequate resources
Provide oversight and direction for the executive
director
Review/approve annual budget and key financial
transactions
Recruit new members and provide orientation
Evaluate board’s own effectiveness
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Planning
Set overall direction, activities, and strategies
Engage in sound planning
Define a clear vision for the future
Specify strategies, goals, and objectives
Incorporate input from constituents
Be intentional
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Transparency and Accountability
Ethical obligation
Convey information regularly and openly
Information should be easily accessible
External visibility
Public understanding and trust
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Program Oversight
Commit to effective, efficient delivery of services
Strive to improve
Understand each program
Approve annual plans and evaluations
Oversee program process and accomplishments
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Fundraising
Develop a fund development plan
Be a donor
Monitor plan accomplishments
Help to identify and solicit donors
Support fundraising committee
Sell special event tickets
Attend the events
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Financial Management
Act responsibly in managing financial resources
Use financial resources to accomplish mission
Keep current and accurate financial records
Engage an independent audit
Approve annual budget and review performance
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Evaluation
Assess impact of actions and act upon this
information
Measure performance regularly against a clear set
of goals and objectives
Improve the quality of processes, programs, and
activities continuously
Share performance metrics with constituents and
the public
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Board/Staff Responsibilities
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Board
Hires, directs, supports and evaluates executive
director
Chair is the official link from board to executive
director
Staff and board act as partners, board is 51%
partner
Draft good policy collaboratively with staff
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Executive Director
Operates under the board’s control and direction
Hires and supervises staff
Supports the board in developing its governing role
Acts as the bridge between board and staff
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Staff
Paid and unpaid
Carries out the work of the organization under the
executive director’s guidance and supervision
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An Effective Board
Strategy focuses on mission
Board work supports mission
Board determines policy, then staff implements it
Good management and governance result in a
competitive advantage
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Questions?