5 essential steps to building a better board for your nonprofit
TRANSCRIPT
5 Essential Steps to Building a Better Board for Your Nonprofit
Richard Wolf, CPA, CGMA, CFE, CVA
Introductions
Richard Wolf, CPA, CGMA, CFE, CVA
Principal at Gross Mendelsohn
20 years of public accounting experience in the nonprofit sector
Today we’ll cover
1. Basic responsibilities of your board and their role in good governance
2. How to identify the right (and wrong) board members for your organization
3. Ways to improve board accountability
4. How to prepare for and undergo leadership transition
5. Simple strategies to boost board engagement
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Define board responsibilities
Action Step #1
Board Responsibilities
Ensure that the organization is fulfilling its mission
Guarantee that the organization complies with its bylaws and other rules
Review the organization’s financial performance
Board Responsibilities
Hire and evaluate the executive officer
Determine and monitor the organization’s programs and services
Set strategic objectives
Board Responsibilities
Enhance the organization’s public image
Serve as content matter experts and a sounding board for executive officers
Protect the assets of the organization
Board Responsibilities
Ensure legal and ethical integrity
Ensure adequate resources are available to the organization
Board Committees
Executive Committee
Board Committees
Executive Committee
Audit Committee
Board Committees
Executive Committee
Finance Committee
Audit Committee
Board Committees
Executive Committee
Finance Committee
Audit Committee
Development Committee
Board Committees
Investment Committee
Board Committees
Investment Committee
Compensation Committee
Board Committees
Investment Committee
Compensation Committee
Strategic Planning Committee
Identify the right (and wrong) board members for your organization
Action Step #2
How many board members should my organization have?
The average nonprofit board size in the United States is 17 members.
Is a bigger board better?
Is a bigger board better?
Burden on director and staff
Is a bigger board better?
$ Costs associated
Burden on director and staff
Is a bigger board better?
$ Costs associated
Burden on director and staff
Enough for a healthy debate
Don’ts of board composition
Don’ts of board composition
Going committee crazy
Don’ts of board composition
Playing an (odd) numbers game
1 2 3
Don’ts of board composition
Not having enough seats at the table
Potential board members to consider
Passionate about yourorganization’s mission
Understand your organization’s clientele
Service professionals
Business leaders
Young professionals
Board Composition Traps
Board Composition Traps
Skills trap
Board Composition Traps
Skills trap
Free services trap
Board Composition Traps
Skills trap
Free services trap
Money/connection trap
Improve board accountability
Action Step #3
Who is the board accountable to?
Supporters
Members
Beneficiaries
Employees
Grantors
Collaborators
Principles of good governance
Legal compliance and public disclosures
Legal compliance and public disclosures
Effective governance
Legal compliance and public disclosures
Effective governance
Strong financial oversight
Legal compliance and public disclosures
Effective governance
Strong financial oversight
Responsible fundraising
Two aspects of board accountability
Two aspects of board accountability
Individual board member accountability
Two aspects of board accountability
Individual board member accountability
&
The board’s collectiveresponsibility
Individual Board Member Accountability
Attend board meetings
Serve on committees
Be knowledgeable about the organization
Individual Board Member Accountability
Personal financial contribution every year
Act as an advocate
Board’s Collective Accountability
Participation
Composition
Tenure
Board’s Collective Accountability
Participation
Composition
Tenure
Recruitment
Officers
Meetings
Board’s Collective Accountability
Self-assessment of the board
Annual assessment of the CEO
Address issues head-on
Lead with authenticity
Create leadership transition plans
Action Step #4
Change in Executive Director
Candid assessment of organization’s strengths and weaknesses
Candid assessment of outgoing executive director’s strengths and weaknesses
Change in Executive Director
Communication is key throughout the process
Staff needs to see that the board is leading a thoughtful transition
Change in Executive Director
Provide assistance to the new hire
Prepare the way, as successful executives rarely let go easily
Be proactive in your efforts for a smooth transition
Board Succession
Define roles of board leadership positions
Board Succession
Define a development process for future board leaders
Board Succession
Define a process of succession
Board Succession
On-boarding or orientation for new board leaders
Boost board engagement
Action Step #5
Meaningful Work
Connected to the Mission
Part of the Process
Active Participation
Why do Board Members Feel
Engaged?
Practice Pointers
Assign board mentors to new board members
Assist all board members in finding the appropriate committee assignment
Include copy of mission statement and strategic plan in board orientation materials
General Pointers
Include bios of all board members in board orientation materials
Find the right balance of communication
Show appreciation
Board contracts
General Pointers
Distribute board packets prior to meeting to: Anticipate key questionsGet committee reports in writing
Use name tags/tents at all board meetings
Provide a list of all internal acronyms
Board Meeting Pointers
Board chair should lead meetings, not the Executive Director
Structure board meeting agendas around important questions, not minor details
Board Meeting Pointers
Focus not on “telling” and “selling,” but on “testing,” “consulting” and “creating”
Adjourn on time, or agree to stay later
Board Meeting Pointers
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800.899.4623
www.gma-cpa.com
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8 Questions to Discover the Type of Board Member Your
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