making the most of your board webinar series, session one: board recruitment

March 25, 2015

Kelly DunphyVice President, Orr Associates, Inc. (OAI)

Caite GilmoreDirector, Orr Associates, Inc. (OAI)

Making the Most of Your Board

Session One: Board Recruitment

• Session One: Board Recruitment (March 11, 2015)

• Session Two: Best Practices for Onboarding and Engaging Board Members (March 18, 2015)

• Session Three: Involving Your Board in Fundraising (March 25, 2015)

Making the Most of Your Board Series

2www.oai-usa.com#OAIBestBoards

1. Introductions

2. The Board Recruitment Process

3. Case Studies

4. Q&A

5. Wrap-Up/Preview for Session Two

Agenda


Kelly Dunphy

• Vice President, Fundraising and Development, OAI

• 15 years of fundraising experience, 8 years with OAI

• Clients projects include:

Outsourced development leadership

Board development

Development planning

Capital campaigns

Event fundraising

Strategic planning

• Serves as Chief Development Officer for Boys & Girls Harbor

• Previously worked at Share Our Strength

About Us


Caite Gilmore

• Director, OAI

• 10 years of fundraising experience, 2 years with OAI

• Expertise in:

Development planning

Outsourced development management

Campaign counsel

Event fundraising

Board building

Strategic planning

• Serves as the Chief Development Officer for College Summit

• Previously worked at the Foundation for the National Institutes of Health, the Robin Hood Foundation, NYU Langone, and American Museum of Natural History

About Us


Develop a Committee

Assess your Board

Create Materials for Recruitment

Identify New Board Members

Formulate the Appropriate Strategies for Recruitment

The Board Recruitment Process


1. Develop a Committee

The Special Role of the Governance/Nominating Committee

The Governance/Nominating Committee should:

• Identify, cultivate, recruit and orient new members

• Identify board leadership through a well considered succession plan

• Evaluate the board’s performance

• Evaluate the performance of individual board members


Sample Governance Committee Timeline (FY July 1 – June 30)


2. Assess Your Board

Identifying Your Board Candidate Profile

• Building your biggest strategic asset

We spend more time hiring a staff leader than choosing a Board leader

• Clarify what you are looking for – what are the “gaps” on your Board

Keep in mind your organization’s plan and its immediate and long-term priorities• Seek new board members for what they can do to help address priorities

Spend as much time identifying the qualities as the function to fill

Think about spending significant time with these leaders• What is the chemistry?

• Team player? Or loyal opposition?


Sample Board ProfileName Affiliation

Fundraising

Capacity Residence EthnicitySector Skills/Expertise/Attributes AgeGenderLe

gal

Hig

h Te

chG

over

nmen

tFi

nanc

e/Ba

nkin

gRe

al E

stat

e/D

evel

opm

ent

Ex-O

ffic

ioN

on-P

rofit

Educ

atio

nO

ther

Bus

ines

sM

anag

emen

t/H

uman

Res

ourc

es

Mar

ketin

g/PR

/Com

mun

icat

ions

Fina

nce/

Inve

stm

ents

Gov

. Aff

airs

/Rel

atio

ns/A

dvoc

acy

Fund

rais

ing

Art

s In

tere

st/E

xper

tise

Entr

epre

neur

ship

M F to 34 35-49 50-64 65+

X X X $$$ Florida X White X

X X $$ Maryland X White X

X X $$ Maryland Black X

X X X $$$$ Maryland X White X

X X $ Maryland X Asian X

X X $$ Maryland X White X

X X $$$ Maryland X White X

X X $$$ Maryland X Asian X

X X $$$$ Maryland X Latino X

X X $$$$$ Maryland X White X

X X $$ Maryland X Black X

X X $$$$ Maryland X White X

X X X X $$ Maryland X White X

X X $$$$$ Maryland X White X

X X $$$$ Maryland X Latino X

X X $$$$ Maryland X White X


X X $$$ Maryland X Black X

X $ Virginia X White X




Sectors Skills Demographics Other Factors

Defense Legal Age Nonprofit Board Experience

High Tech Finance & Accounting Gender Personal Wealth

Government Investment Race “Plays well with others”

Developers Human Resources Residence Corporate or foundation ties

Legal Government Relations Ties to other organizations

Education Marketing

Health Care IT

Banking Fundraising

Retail

Nonprofit

Elements of an Excellent Board: Diversity


3. Create Materials for Recruitment

• Print Materials:

Job description that clearly outlines the time and financial commitments

Board roster

Case statement or other marketing materials

Annual report

• Briefing Memo:

Prospect profile

Your elevator pitch and the case for joining your board

Benefits of board membership

Research candidates before you start meeting with them

Tools for Board Recruitment


• One page

• Should include expectations in all or most of the following categories:

Advocacy for the organization and its mission

Service/attendance (term limits, meetings)

Fundraising activity/financial support

Governance

Knowledge of the organization

Access to information and confidentiality

Accountability

Job Description


• Pros of a set give/get amount:

Clear expectation

Clear measurement

Sets the bar high for new Board members

The collective amount can be impressive to other funders

Give and Get Requirement


• How to set the right amount:

First, look at what your board members are already doing, both giving and fundraising

Do some comparative analysis and see what other orgs in your community are doing

Think about where your organizations is headed, the vision, your plans for growth, and the resources you need to get there

• There will always be exceptions:

20%-30% of your board will be there for their talent and time; they bring mission and program expertise; but they should still give at a personally significant level

How to handle grandfathering in those current board members who cannot meet the specific amount

Give and Get Requirement (cont’d)


4. Identify New Board Members

• Current board members

Hold a prospecting session at your next board meeting

Meet 1:1 with board members for a “sphere of influence” exercise

• Other stakeholders or “connectors”

• Current corporate partners

• Current major donors

• Past board members

• Board placement organizations

• Chamber of Commerce or Board of Trade

Identifying Board Prospects… Relationship, Relationship, Relationship


5. Formulate the Appropriate Strategies for Recruitment

Recruiting Philosophy

• Recruit from a philosophy of strength and passion

Expect that there are people who want to join your board

Find the matches that invigorate you, make you want to work with them

• Even if several openings, recruit a pool for each one; several candidates

allows you to pick and choose

This mindset will help you select the best match

Similar to hiring process

This also makes the process transparent

Keeps you in control


• How is this nonprofit related to my network?

Who else is involved?

Who’s asking?

• How does this nonprofit’s mission align with my company’s philanthropic priorities?

• Is the nonprofit successful at what they do?

• What are they asking me to do?

Time

$$

Fundraising

• How can I make a difference?

What are the challenges the non-profit is facing?

How does my expertise help?

What Are They Thinking


How to Approach Corporate Professionals

• Start with peer to peer (often a current board member)

CEO to CEO / MD to MD / level to level

Get introduction from peer and make sure peer is part of the ask process

• ED must have basic knowledge of what they do:

Latest news about their company and industry

Read Wall Street Journal, Forbes, and The Economist

Must relate to them

24


Cultivation/Recruitment Steps

• Site visit or opportunity to showcase your organization’s mission

• Breakfast or lunch with current board member(s)

• Meeting with the Executive Director

• Board meeting visit

• “Interview” with the Board Chair and 1-2 other board members (or the Governance Committee Chair if you have one)


Board Recruitment is a Year-Long Function

Identify needs for the next several years using a profile of your

current board

Determine renewals and retirements and have

conversations with both; Identify candidates who meet identified

needs

Interview candidates using a job description - determine a “slate” to be presented to the full board;

cultivation could take several steps

Approve the slate - inform new and renewed board members

Orient new board members


Case Studies

A Founder's Board

• Case Study: NYC-based charity serving youth

20-year old organization

Founder is still Executive Director

Potential issues:

• Used personal network to recruit board – lack of turnover

• Failure to adapt to changing needs/directions

How they made it work:

• Board recruitment is a constant priority

• Board members are moved off the board due to non-performance

• Created a separate “Sustaining Board” to keep “non-performers” engaged

• Involved board members in strategic planning process


• Case Study: DC-based charity serving youth


Potential issues:

• Founder/CEO built board, but recruitment not a priority in recent years

• Bylaws allowed for 15 years of board membership – lack of turnover

• No established give/get amount led to wide array of giving

• Deeply involved in operations; needed new “doers”

• Small donor base – needed access to new networks of potential donors

How they made it work:

• Re-energized the dormant Governance & Nominating Committee, charged by CEO and Board Chair with leading a campaign to recruit at least 3 new board members over a one-year period.

• Created Advisory Committee of non-board members to access new networks

• Revised bylaws to establish shorter term limits to encourage turnover

• Adopted a new Job Description with give/get amount for new board members

• Currently considering a “Sustaining/Emeritus Board” to keep valuable termed-out members engaged

A Committed, but Tired Board


• Case Study: NYC-based youth social services organization


Issues:

• Board membership included several non-performers

• No established give/get amount

• Gap in industries and skill sets, particularly in finance, which is a key industry in NYC from which to target board members

• Same donors year after year – needed access to new networks of potential donors

A Board in Need of Transition


• Case Study: NYC-based youth social services organization

How they improved:

• Recruited a special committee from existing board members, with an objective to identify and recruit new board members from the finance, media, and real estate industries

• Established a minimum give/get of $25,000 for new board members

• Adopted a new board job description

• Board Chair and CEO were highly engaged in the project and acknowledged that the process could take at least a year

• Recruited 9 new board members in 12 months, all committed to the new give/get policy and job description

• The project injected much-needed energy into the board overall, and helped improve existing board member participation as well

A Board in Need of Transition


Send additional questions to:

Kelly Dunphy: [email protected]

Caite Gilmore: [email protected]

Q&A

Wrap-Up/Preview for Session Two

making the most of your board webinar series, session one: board recruitment

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