Board Basics for Beginners Presented by Sandy Gill, Director Northwest Nonprofit Resources Saturday March 20,

Topics We’ll Cover n Reasons for Having a Board n 4 Types of Board Responsibilities n Board Member Qualities n Accountability n Board Operation: the mechanics of being a board n Overview of Board Recruitment and Retention Ten Steps n Boards of All-Volunteer Organizations Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA

Reasons for Having a Board n The board –Ensures funds are used for nonprofit purposes, »NOT to make the board members or staff members wealthier. –Hold the organization accountable to the public. n Boards do this through - – Financial oversight – Appointing a capable chief staff-person – Maintaining Control of Big Decisions » Substantial changes to mission » Merging/ Closing, etc. Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA –Source: What's the Point of a Nonprofit Board, Anyway? By Jan Masaoka –

Mission Reasons for Boards  Demonstrate a sense of ownership in a nonprofit  Work hard to help their organizations succeed  Act as a safety net for the mission – stepping in during a crisis or “stumble” Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa (f) Source: What's the Point of a Nonprofit Board, Anyway? By Jan Masaoka –

4 Types of Board Responsibilities n Mission & Program n Financial n Legal n Structural

Board Responsibilities - Mission & Program n Assure current mission & purpose (1) n Assure effective organizational planning (6) n Enhance organization’s public standing (8) n Determine, Monitor, Strengthen Programs (9) Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa Sources: Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009; BoardSource

Board Responsibilities - Financial n Provide Proper Financial Oversight (3) – Assist in developing the annual budget; monitor – Ensure that proper financial controls are in place n Ensure Adequate Resources (4) – Provide adequate resources for the organization – In partnership with staff raise funds from the community n Participation in Fundraising – Participate personally and annually. – Participate in identification, cultivation, and solicitation of prospective supporters. Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa Sources: Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009; BoardSource

Board Responsibilities - Legal n Care: – To exercise reasonable care when making decisions for the organization n Loyalty: – To be faithful to the organization’s mission Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA Source: The Legal Obligations of Nonprofit Boards: A Guidebook for Board Members by Jacqueline Covey Leifer and Michael B. Blomb, BoardSource

Board Responsibilities - Legal n Obedience: – To act in the interest of the organization when making decisions affecting the organization. » Conflict of interest policy » Full disclosure when board member has a personal interest in matters impacting the organization » Never use information obtained as a member for personal gain Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA Source: The Legal Obligations of Nonprofit Boards: A Guidebook for Board Members by Jacqueline Covey Leifer and Michael B. Blomb, BoardSource

Board Responsibilities - Structural n Attendance – To attend board meetings and participate in some committee work n Selection, Evaluation and Support of the executive – To approve the selection, compensation, and, if necessary, the dismissal of the chief executive. – To assure regular evaluation of the executive’s performance. n Assurance of Board effectiveness – To assure the board fulfills its governance responsibilities and maintains effective organization, procedures, and recruitment. Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa Sources: Welcome to the Board: Your Guide to Effective Participation by Fisher Howe, 1995 Ten Basic Responsibilities of Nonprofit Boards by Richard T. Ingram, 2009

Individual Board Member Qualities: n Integrity: Reputation and proven track record - respected, responsible, honest n Open Mind: Board perspective, willingness to search out solutions, face complex problems where solutions are not easy. n Competence: In their areas of expertise, experience, and/or perspective. n Enthusiasm: Eagerness for the cause of the organization n Sense of Humor: Can see the light side of even the most serious of situations. "What kind of board member does this organization need me to be right now?“ Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders; PO Box 9066; Spokane Wa Sources: National Charities Information Bureau (NCIB); BoardSource; Jan Masaoka; Class participants

Tools for Role Clarity n Board Handbook: resources all in 1 place –Governing documents –Policies, procedures n Job Descriptions: Tool for Understanding, Clarifying Expectations – Board Members, –Officers, –Committees Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa

Accountability n To Constituency & General Public –Having a strong board is not just a way to get help, also –A way to keep the organization close to its constituents (not just its donors and friends). n Government Monitoring & Expectations –Report filing – accuracy, on time –Public Access to information –Compliance with laws Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa (f)

Accountability – Your Role n Record & Abide by Policies for Board Operations: –Financial –Ethics such as Conflict of Interest; –Personnel –Public Relations –General Operating (especially if all volunteer or few staff) n Ask good questions n The importance of good relationships n Understand and comply with your responsibility to state, local & federal government. Separate myth from fact. Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa (f)

Board Operation: the mechanics of being a board n Governance Structure that’s easy to create, maintain, and change as needed n Policies for consistent practice n Board Dynamics (culture, expectations, styles) n Relationship with staff (if any) n Board Meetings – how long, how often, agenda, conduct n Elements for effective meetings - (well planned, led w/ clear priorities) n Committees as and where needed n Evaluation – effectiveness of board performance (individual & group) Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane Wa (f)

Ten Steps of Board Recruitment & Retention n Welcome – Create a Welcoming Environment n Identify – Board Profile, Needs, Priorities n Cultivate – Invite Interest n Recruit – Invite Commitment n Orient – Welcome to the Board, expectations, team building n Engage – Board Member Involvement n Educate – Develop a Well-Informed Board n Rotate – Keep the Board Fresh n Evaluate – Board Reflection n Celebrate – Appreciation & Recognition Prepared by Sandy Gill, Northwest Nonprofit Resources: Resource Center for nonprofit leaders PO Box 9066; Spokane WA Source: The Board Building Cycle, BoardSource, 2000.

Boards of All-Volunteer Organizations n Board’s responsibilities are different from one all-volunteer organizations to another. n Each organization will want to define its responsibilities for itself. n Two types of responsibilities that boards have in all-volunteer organizations. –1) corporate or governance related to responsibility for the nonprofit corporation, as protectors of the public interest as embodied in the organization. –2) management and leadership (the doing) –related to the board as the leaders and chief volunteers in the organization PO Box 9066; Spokane WA Source: All Hands on Board by Jan Masaoka

Corporate or Governance Responsibilities Responsibilities as a Collective Body 1. Handle the money and file the forms. 2. Keep the organization & its operations legal and safe. 3. Make big decisions for the future. 4. Make sure the organization is accountable to its constituencies. Protect the organization’s reputation. 5. Get help when needed (such as outside expertise, more volunteers). 6. Plan for the arrival and departure of individual members. Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA Sources: All Hands on Board by Jan Masaoka

Management & Leadership Responsibilities Typically responsibilities of individual board members. 7. Get the work done. 8. Support other volunteers so they can successfully contribute to the organization’s work. 9. Be ambassadors to the community. 10. Pass along the covenant. Provide leadership in spirit. Set the tone for others. Prepared by Northwest Nonprofit Resources: Resource Center for nonprofit organizations and their leaders; PO Box 9066; Spokane WA Source: All Hands on Board by Jan Masaoka

Topics We Covered n Reasons for Having a Board n 4 Types of Board Responsibilities n Board Member Qualities n Accountability n Board Operation: the mechanics of being a board n Overview of Board Recruitment and Retention Ten Steps n Boards of All-Volunteer Organizations Prepared by Sandy Gill, Northwest Nonprofit Resources A Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA

Other Resources Pages 9-10 of Resources for the Basics of Nonprofit Boards A selection of resources on these topics n Legal Resources n Board and Governance Resources n General Nonprofit Resources Prepared by Sandy Gill, Northwest Nonprofit Resources A Resource Center for nonprofit organizations and their leaders PO Box 9066; Spokane WA