1. ISD Leadership Orientation Independent Sealing Distributors

2. Section 1 Overview of the Nonprofit Sector

3. Overview of the Nonprofit Sector America’s Three Sectors Private Sector Business and industry Public Sector Government and public educational systems Nonprofit Sector Charitable organizations, membership associations, professional societies, trade associations, like ISD!

4. Overview of the Nonprofit Sector What Is the Nonprofit Sector?  Advocacy and public education groups Membership associations Environmental and conservation groups Performing arts and fine arts organizations Churches, temples, and mosques Credit unions Veterans and service clubs ISD!  Homeless shelters and soup kitchens Colleges and universities Support and counseling services Hospitals and community health centers

5. Types of Nonprofits Charities (Section 501(c)(3) of IRS tax code) Special Olympics, YMCA,  Metropolitan Museum of Art Professional and Trade Associations (501(c)(6)) American Dental Association, AARP, and ISD! National Social Welfare Organizations (501(c)(4)) NAACP, National Organization for Women, Sierra Club Social Organizations (501(c)(7)) Swimming clubs, garden clubs,  alumni associations Overview of the Nonprofit Sector

6. What Is the Nonprofit Sector?* * For more information on the nonprofit sector, visit the BOARDSOURCE website at www.boardsource.org. Approximately 1.6 million nonprofit organizations in the U.S. Combined revenues of more than $670 billion One in 12 Americans works for a nonprofit 56 percent of adults volunteer for nonprofits Combined contributions of $190.16 billion in 1999

7. Section 2 About ISD

8. About the Organization ISD Mission Statement “To enhance the success of independent sealing distributors through information, education and interaction” In order to accomplish this mission, ISD provides members with a wide spectrum of services, benefits and information, enabling users to stay abreast of technical, management, regulatory and business changes within the industry. ISD's member benefits and services are designed to improve the professionalism, success and profitability of participating companies and individuals.

9. About the Organization Core Values The board has defined ISD’s core values as: Purposeful sharing of knowledge Support of independent businesses

10. About the Organization Long-Term Goals Our major long-term goals are stated as follows: “ISD will become the world’s leading forum for independent fluid sealing distributors, to be accomplished by: Certifying fluid sealing specialists worldwide, Establishing ISD chapters on every continent, Becoming the premier source of industry information and reference, and, Gaining 100% participation of worldwide fluid sealing manufacturers and independent distributors.

11. Objectives In order to accomplish these goals, the board identified five primary objectives, which guide the work of our committees and staff throughout the year. The five objectives are: Increase ISD fluid sealing specific technical training and information, Strengthen the perceived value of the independent sealing distributor at the end-user market level, Establish an ISD professional certification program, Utilize technology to deliver information and resources of value to all members, Grow membership worldwide. About the Organization

12. Programs and Services Spring Business Seminars Annual Convention Program Spring Technical Seminars University Of Industrial Distribution Statistical Studies & Reports Quarterly ISD Newsletter Annual Membership Directory Web Site Information & Member Services – www.isd.org Discounted Business Services Industry Experts Service SealNet Marketing Program CEO Forum ‘Presidents Club’

13. About the Organization Finances  Treasurer Oversees Annual Operating Budget  Staff Develops Annual Operating Budget  In House CPA Guides Procedures & Reports  Monthly Financial Statements Sent to All Board Members  Investment Policy In Place – Legg Mason CDs  Independent Financial Review or Audit Conducted Every Two Years

14. Section 3 About the ISD Board

15. About the Board ISD Board Structure Board Officers: President, Vice President, Treasurer, Immediate Past President. Executive Director/Secretary Serves Ex-Officio Board Members: Six Distributors Serve Staggered 3 -Year Terms. Elected by Distributor Members One Associate Serves 2 -Year Terms Elected by Eligible Associate Members.

16. The ISD President Presides over all board meetings including any additional teleconferences or special meetings Helps select agenda topics for discussion at all board meetings Presides over the Executive Committee consisting of the President, Vice President, Past President, Treasurer and Executive Director Writes articles for each ISD Insider newsletter and the Annual ISD Membership Directory Confers with the Executive Director on a monthly basis Communicates with all committee chairs at least quarterly Phones and welcomes all new ISD members and board members Assists in the selection of and signs contract for the ISD Fall Convention

17. The ISD Vice President Backs up and confers with the President and the Executive Committee Chairs Board meetings in the absence of the President Helps select the following years’ ISD Fall Convention site

18. The ISD Treasurer Confers with the Executive Director in reviewing the monthly financial report and preparing the annual budget for ISD Co-signs all ISD checks over $2,000 Communicates with each committee and the Executive Director regarding any additional expense items that may exceed the approved annual budget Reviews the ISD Investment Policy Ensures that a financial review or audit is conducted every two years

19. The ISD Past President Chairs the Nominating Committee for new Board members and the selection of new Treasurer Chairs any special projects selected by the President and/or Executive Committee Acts as liaison with the ISD past presidents Chairs any meetings held by the ISD past presidents on any special projects recommended by the ISD Board

20. The ISD Executive Director Serves as chief executive officer of the association, responsible for ISD business operations Manages ISD staff and resources in keeping with association policies and procedures Reports to the ISD Board and is accountable to them

21. About the Board Board Structure Committees: Executive Committee Benefits & Resources Committee Communications & Technology Committee Membership Development Committee Associates Committee Program Development Committee Task Forces: Developed and Assigned As Needed To Support Specific Projects Or Tasks.

22. Executive Committee Ensures that all association policies, procedures and operating guidelines are maintained Reviews ISD by-laws as necessary and offers ideas toward changes, additions, or deletions of same. Reviews ISD/TMA agreement on a yearly basis Assists with the selection of locations and hotels for Spring and Fall events Abides by and enforces rules of order for all ISD Board meetings

23. Benefits and Resources Committee Develops, promotes and oversees all training and educational resources, products and programs Supports the promotion of the University of Industrial Distribution education program Coordinates the development and exchange of new and existing programs and services with other trade associations and organizations Develops and promotes the Annual Operating Study Conducts member surveys and publishes results for Board and Committee review

24. Communications & Technology Committee Oversees the ISD Web Site at www.isd.org Gathers relevant articles from related organizations and ISD members for publication in ISD Insider newsletter and on the ISD website Oversees the “SealNet” online marketing program Publishes the ISD Annual Membership Directory

25. Membership Development Committee Conducts membership recruitment & retention programs Keeps track via printed reports of membership gains/losses Regularly reviews the membership qualification criteria Reviews all new member applications for acceptance or rejection

26. Associates Committee Provides input and advice to the ISD Board and committees relevant to Associate Member interests Provides technical/product articles to the ISD Insider newsletter for publication Advises ISD on member certification program opportunities Conducts Associates meetings at the Spring and Fall ISD events Coordinates the Annual Table Top exhibit program at ISD’s Annual Convention Supports the “Suppliers Spotlight” program at ISD’s Annual Convention

27. Program Committee Assists ISD staff in the selection of all programs and speakers for spring and fall events Reviews with treasurer all costs involved with programs and speakers

28. About the Board All ISD Board members are provided with an ISD Leadership Operations Manual containing: Historical Data Board Policies & Minutes ISD Membership Directory ISD Bylaws Finance Reports & Operating Budget Financial Audits / Reviews Membership Procedures Communications & Newsletters Convention / Seminars Literature ISD/TMA Management Agreement Current Strategic Action Plan

29. Section 4 Board Roles and Responsibilities

30. Board Roles and Responsibilities Board Function Organizational Governance  Authority  Accountability

31. Board Roles and Responsibilities Key Roles of the Board Set Organizational Direction Provide Oversight Ensure Necessary Resources

32. Board Roles and Responsibilities Board Role Set Organizational Direction Responsibilities: Participate in regular strategic planning (every three years) Determine organization’s mission Set the vision for the future Establish organizational values Set major goals and develop strategies Approve operational or annual plans

33. Board Roles and Responsibilities Board Role Ensure Necessary Resources Responsibilities: Hire capable executive leadership Ensure adequate financial resources Promote positive public image Ensure the presence of a capable and responsible board Engage Members to Serve as Active Volunteers

34. Board Roles and Responsibilities Board Role Provide Oversight Responsibilities: Oversee financial management Minimize exposure to risk Measure progress of strategic plan Monitor and evaluate programs and services Provide legal and moral oversight Evaluate the chief executive Evaluate itself

35. Board Roles and Responsibilities Individual Board Member Responsibilities Act in Accordance With Legal Standards Duty of Loyalty  Show undivided allegiance to organization’s welfare Duty of Care Stay informed and ask questions Duty of Obedience Stay faithful to the organization’s mission

36. Board Roles and Responsibilities Individual Board Member Responsibilities  Serve as ambassadors to the industry  Volunteer services to the organization outside of their board work  Work on committees and task forces  Participate in the governance of the organization

37. Board Roles and Responsibilities Individual Board Member Responsibilities  Maintain your company’s membership  Provide names of potential members  Attend ISD events  Act as a resource to chief executive