building strong & engaged nonprofit boards marion t. lee, cfre september 13, 2012

Building Strong & Engaged Nonprofit Boards

Marion T. Lee, CFRESeptember 13, 2012

Stages of Nonprofit GrowthStage Characteristics of the BoardNascent Operational focus, friends of Founder, limited

formal process

Adolescent Wider circle, growing in prominence, still lacking in Board training

Intermediate Strategic planning, formal process for recruitment, job descriptions, active committee work, need for training

Mature Regular strategic planning, board criteria established, ongoing training, active Committee on Directors, evaluation of Executive Director, Board evaluations

Telling Your Board Story

ActivityShare 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 don’t have to…• “Dating” potential Board Members…

Dating… from a potential Board member’s perspective

• What can they find out about you? – Guidestar, Form 990’s, 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 it’s 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 DashboardWhat 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