1. Principles and Practices For Nonprofit Excellence

2. 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

3. 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

4. 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

5. Duty of Care  Go to meetings  Take responsibilities seriously  Read and understand documents  Ask questions  Know what organization does and how well

6. Duty of Loyalty  Disclose any conflict of interest  Focus on the organization’s best interests  Maintain confidentiality  Maintain loyalty

7. Duty of Obedience  Safeguard the mission  Maintain public trust  Manage operations and resources  Assess effectiveness regularly

8. Effective Governance

9. 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

10. 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

11. Transparency and Accountability  Ethical obligation  Convey information regularly and openly  Information should be easily accessible  External visibility  Public understanding and trust

12. 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

13. 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

14. 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

15. 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

16. Board/Staff Responsibilities

17. 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

18. 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

19. Staff  Paid and unpaid  Carries out the work of the organization under the executive director’s guidance and supervision

20. 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

21. Questions?