Nonprofit Board of Directors Best Practices
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Transcript of Nonprofit Board of Directors Best Practices
ModeratorNicole Roach
Marketing Coordinator
CharityNet USA
Key Speaker
Melanie Swift M.N.M
Director of Nonprofit Services
CharityNet USA
• CharityNet USA: A “One-stop” resource
center for nonprofit organizations
nationwide!
• Key Speaker: Melanie Swift
• Questions
• Recorded Webinar Available At:
http://www.charitynetusa.com/webinararchive/index.php
• About Boards of Directors (BoD)
• Twenty Best Practices for BoD
• Conclusion
• Questions
Boards of Directors have many
responsibilities and fill various roles:
– Such as
• Provide leadership as a governing body
• Approve annual budgets
• Ensure sufficient available financial resources
• Fulfill legal obligations
• Responsible to stakeholders for organizations’
achievements and shortcomings
• Generally elected
• Roles, responsibilities,
and powers are usually
outlined in bylaws
• Members may have diverse backgrounds,
although usually share common goals
Governance Hat
Worn only when in a properly called meeting
Volunteer Hat
Worn when advising the Executive Director, fundraising, and helping staff
Implementer Hat
Seldom worn, as program implementation is usually the responsibility of staff
The following practices are general guidelines, and should be tailored to meet your specific needs.
Organization characteristics to consider include: • Size• Location• Industry • Population served• 501 status • Business mindedness• Other unique factors
20. Stay Mission Driven
Shape and uphold the mission; articulate a compelling vision
Maintain consistency with mission, vision, values in decisions, policies, and actions
“Keep the Dream Alive”
19. Strategic Thinking
Allocate time to what matters most
Continuously monitor the environment to hone direction
18. Develop a culture of transparency, consistency, and accountability.
– Ensure that donors, stakeholders, and interested members of the public have access to appropriate and accurate information regarding finances, operations, and results.
17. Be Results-Oriented
Continuously measure progress toward
mission fulfillment
Evaluate efficiency, effectiveness, and impact of major programs and services
16. Remain Independent Mainly volunteer
Lack of relationships
15. Plan for Revitalization
Understand the
importance of fresh
perspectives
Energize the board
through planned
turnover and thoughtful,
continuous recruitment
14. Develop a Conflict of Interest policy
– Be sure members abstain from voting when
there is a potential conflict of interest
– Ensure arm’s length negotiations
13. Develop and adopt a Whistle Blower policy
– It’s important for employees to know they will be protected if/when they protect the organization
12. Boards of Directors should meet at least once per quarter.
11. Documentation is crucial
Meetings, decisions, presentations, and so forth should be documented appropriately
Examples of documents: minutes, receipts, and handbooks
10. Charity should begin at the office
– As leaders of the organization, members should make it a point to donate their time and money to their organization
– 100% Contributing Boards ideal
9. Fundraising Accountability
– Members often raise funds and garner resources
• Often have an extensive network
• Accountable to their word and for their efforts
8. Sustain Resources
Link bold visions and ambitious plans to
financial support
Approve activities that can be realistically
financed with existing or attainable
resources
7. Always have financials audited by an
outside organization.
Change auditors/auditing organization
every five years.
6. Board members should be aware of current
laws and policies
This will help keep the organization out of
legal trouble
5. Ensure Compliance
As part of ongoing strategic planning, be
aware of all federal, state, and local
compliance issues
4. The Board of Directors should
comply with the Duty of
Loyalty
– In other words, Boards of
Directors needs to look out
for the best interest of the
organization
– Never use information or
resources obtained as a
member of the board for
personal gain
3. Fulfill the SOX Act audit standards
– The Sarbanes-Oxley Act of 2002 is mandatory.
– Focus on, and tailor appropriate organizational response to meet SOX requirements.
– Created to protect against accounting crimes by outlining new standards for accountability.
**For more information, please see: www.soxlaw.com
2. The Board of Directors and the organization’s
Executive Director should have a strong
working relationship.
1. Continuously
review your Board
of Directors’ best
practices and
board
effectiveness
• Members should be chosen carefully, and understand their roles and responsibilities
• It is crucial for members to follow legal regulations and work for their organization’s success, even when it means making difficult decisions
• Every organization should have a formal Board Policy Manual
• Developing a Strategic Plan: 6-17-2010 3pm EST
• CharityNet Nonprofit Services
• 501c3 Prep
• Grant Writing
• Strategic Planning
• Website Development
• Graphic Design
• Marketing
• Bookkeeping & Accounting
• One-on-Consultation Time
• Contact Us
• Nicole Roach: [email protected]
• Melanie Swift: [email protected]
• Visit www.CharityNetUSA.com or Call 407-857-9002
www.twitter.com/charitynetusa Facebook Fan Page:
CharityNet USA