Building Strong & Engaged Nonprofit Boards Marion T. Lee, CFRE September 13, 2012

Stages of Nonprofit Growth StageCharacteristics of the Board NascentOperational focus, friends of Founder, limited formal process AdolescentWider circle, growing in prominence, still lacking in Board training IntermediateStrategic planning, formal process for recruitment, job descriptions, active committee work, need for training MatureRegular strategic planning, board criteria established, ongoing training, active Committee on Directors, evaluation of Executive Director, Board evaluations

Telling Your Board Story Activity Share the profile of your Board with someone not from your organization. What does your Board look like now? Characteristics, ages, professions, level of involvement, passion for the work…

Board Profile Recruiting Orientation Expectations Functioning Committees/Work Ongoing Education Evaluation Removal/ Release Life Cycle of A Board

The Ideal Board… Does it represent spheres of influence? Does it have: – Expertise » Legal, Accounting, Marketing, Fundraising, Construction, Planning, HR, Investment Knowledge, Program Development, etc. – Influence – Affluence

Board Matrix… What Does Our Board Look Like?

Recruiting Not I have a friend who might do it… Board Matrix – art & science Who does the recruiting? Active Nominating Committee Where do you find the right people? Telling the Truth- you dont have to… Dating potential Board Members…

Dating… from a potential Board members perspective What can they find out about you? – Guidestar, Form 990s, web sites – Ask for a job description – Copy of Annual Report – Copy of Financials – Copy of Strategic Plan

Dating, continued… – Meet other board members – Meet the staff – Take a tour

Expectations Clear and concise One page job description Financial participation outlined Meeting participation outlined What else?

Orientation Planned Session Tours Trustee Manual Agendas, minutes, contact information Budgets, By-laws Important dates Conflict of Interest policy Board Buddy System

A Board Focuses On… Governance & Policies Mission Related Programs Annual Budget & Monitoring Sources of Revenue (Diversification) Ongoing work at committee level

Functioning Committees/Work Traditional Standing Committees – Finance – Fundraising – Programs – Governance/Nominations Traditional Ad Hoc Committees – Events – Evaluation of Executive Director – Audit & Compensation

Work At Board Meetings If its longer than 1.5 hours… Consent Agenda Decision/Advice/Information More reporting than discussion Dialog about an issue (small groups) Stories/Testimonials at every meeting Social/Celebration time

Ongoing Education Mission moment at every meeting By-laws review once a year Reading our financials training Programmatic training Topical training – How to run a committee meeting – How to ask for money

Financial Dashboard What are the four or five financial gauges we should review regularly?

Evaluation of the Board – Annually or bi-annually – Typically coincides with Chair term – Evaluating our work – Evaluating our satisfaction

Removal/Release Depends upon your By-laws Easily done at end of term Advisory Board role? Challenge: Necessary to remove now – Board Chair must take the lead Self-policing… – Follow your By-laws – Often a conversation resolves the issue

Bacon Lee & Associates