ADVOCATE CHARITABLE FOUNDATION CONFERENCE

Board Development: Recruit, Engage and Transform

Kathleen O’Connor Corporate Vice President September 12, 2012

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Objectives

Review the purpose, responsibilities and life cycles of boards

Understand the ideal composition of your board and identify opportunities to strengthen this important leadership team

Discuss resource development and fundraising expectations and why it is an important component of service

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Session Outline

I. Board basics

II. Recruitment strategy1. Analyze

2. Identify

3. Inform & Assess

4. Recruit

5. Orient & Engage

III.Board engagement in philanthropy

IV.Board transformation

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Advocate Leadership Bodies

Advocate Healthcare Board

Advocate Charitable Foundation Board

Development Councils

Governing Councils

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I. BOARD BASICS

Board Development:

Recruit, Engage and Transform

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Boards – What Are They Good For…

Strategy:

To give the organization direction, establishing its vision, mission and values

Oversight:

To provide oversight, especially in financial matters, to ensure accountability

Participation:

To ensure the organization has the resources it needs to do its work

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Basic Board Responsibilities

Determine the organization's mission and purpose

Provide proper financial oversight

Ensure adequate resources

Ensure legal and ethical integrity and maintain accountability

Ensure effective organizational planning

Recruit and orient new board members and assess board performance

Enhance the organization's public standing

Determine, monitor and strengthen the organization's programs and services

Source: BoardSource

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Typical Board Structure & Committees

Executive Committee

Finance Committee

Development Committee

Audit Committee

Personnel Committee

Investment Committee

At Large Members

Source: BoardSource

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Important Committees

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Board Lifecycle

Start-up

Adolescent

Mature

Defunct

Stagnant

Board plays hands-on role in oversight and management

Board relinquishes its operational role and focuses on advice, oversight and long-term planning

Increases policy, oversight and fundraising role.

Expands, diversifies, formalizes structure.

Continually assesses performance and composition, roles responsibilities and structure to stay effective.

A Board can avoid this stage if it learns to adapt to new circumstances and opportunities

A healthy organization will work to stay at “Mature” stage to avoid “Defunct” status

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II. RECRUITMENT STRATEGY

Board Development:

Recruit, Engage and Transform

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Maintaining an Effective Board

1. Analyze

2. Identify

3. Inform & Assess

4. Recruit

5. Orient and Engage

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1. Analyze

Age Professional Expertise

Gender Geographic Representation

Ethnicity Years on Board

Capacity/Connections Committee Participation

Analyze current board size and composition by developing a board matrix focusing on the following:

Review committee structure and committee descriptions

Finalize election process and board contracts

Ensure appropriate succession planning

Compare board activity to peer groups

Determine areas of weakness

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What Funders Want to Know About Your Board

Diversity and inclusiveness

Support mission

Personal involvement

Solid partnership between board and CEO

Financial support and 100% contribution

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Board Member Diversity and Talent

Demographics

Constituency/Affiliation− Community− Corporate− Small Business− Government/Public Sector

Skills/Experience− Accounting− Applicable Sector Experience (Healthcare)− Development− Finance/Budgeting− Human Resources− IT− Law− Marketing/PR− Nonprofit Management− Planning− Real Estate

Committee− Board Development− Finance− Programs/Operations− Fund Development− Leadership/Board Experience− Leadership Experience− Board or Corporate Governance− Nonprofit Board Experience

Fundraising (Potential and Activity)− Significant Philanthropic Influence− Corporate Board or Affiliation− Foundation Board or Affiliation− Significant Wealth Indications− Donor to Organization ($XX,000+)− Prospect for Organization ($XX,000)− Willing to Serve on Event Committee− Willing to Host/Cultivate− Willing to Open Doors/Introductions− Willing to Participate in Solicitation

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Board Composition Evaluation Tool

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2. Identify

To fulfill the organization’s mission and long-range goals and objectives, a board must seek qualified candidates in all areas that can help the organization succeed

Establish a pipeline of candidates

− Current supports

− Event participants

− Community leaders

− Business leaders

Conduct research

Qualify candidates

Enthusiastic & informed

Supports plan & case

Participates in meetings

Gives time

Willing to fundraise

Not afraid to ask

Does good follow-up

Makes good annual gift

Supports capital drives

Helps recruit top people

Attends special events

Influences corporate/ foundation gift

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3. Inform & Assess

Have an up-to-date Board Nominee Orientation Manual for use in preliminary briefing meetings with Board prospects

Explain board roles and responsibilities and expectations

Rely on a standard cultivation process by encouraging potential prospects to serve in key volunteer roles to assess their diligence and gauge their ability and strengths

Check references

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4. Recruit

Strategize best approach

Clearly define the role and commitment

Make the ask

Recruitment tools

Mission Statement Recruitment Prospectus

Case for Support Candidate Tracking Chart

Funding Needs List Board Member Roles and Responsibilities

Board Member List Good and timely follow up

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From Identification to Scheduling the Meeting

Profile

Research Current Donors Research Corporations/ Foundations Research New Prospects

Create 2 lists: Current Donors and New Prospects. Include 3-line Bio. For top 50.

Trustee/Nominating Committee reviews list. Rank List. Share with Board

Create Prospect Profiles for top candidates

Schedule cultivation meeting with prospects

Prospect Identification with Nominating or Trustees Committee

Is this a good candidate?Do you know him/her?

Can you contact him/her?

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5. Orient & Engage

Develop a systematic method for on-boarding new Board members:

– Provide new board members with a Board member handbook

– Provide an Orientation Presentation two to three times per year

– Establish working relationships with new members and design their particular roles

– Immediately appoint new Board member to serve on at least one active Committee of the Board

– Continue to educate Board members about the Board Development activities

– Designate a Board member to manage new Board Relationships

– Introduce new Board member at next event

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III. BOARD ENGAGEMENT IN PHILANTHROPY

Board Development:

Recruit, Engage and Transform

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Attend

Advocate

Explain

Introduce

Invite

Invest

Thank

Board Engagement in Philanthropy

Work

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Board Member Giving

Industry Standards

− 46% of charities have 100% board giving

− Boards average 74% participation

− 64% of charities require contributions from board members

− 100% board giving should be an expectation

The give-and-get commitment

Source: BoardSource

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Why are Board Members the Best Fundraisers?

Board members are the volunteer group closest to the organization

They are one of the strongest voices for the organization

Their participation in fundraising efforts send a clear signal of commitment

They bring credibility to the solicitation process

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Roles to Play in the Major Gift Process

3-EVALUATE/RATE

4-DETERMINE $$5-SET TIMETABLE

6-CULTIVATION

7-SOLICITATION

8-CLOSING

9-RECOGNITION

1-IDENTIFY 2-RESEARCH

10-STEWARDSHIP

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The ABC’s of Major Gifts

CULTIVATE/ INTRODUCE BRIEF ASK

Status Of Prospect

A meeting or activity to cultivate interest in organization

A pre-ask briefing

An immediate and direct request for financial support

Action To Be Taken

Schedule a meeting with Board Members

Invite to a reception, event, breakfast, or other cultivation activity

Prepare a case statement

Prepare a giving opportunities list

Prepare a briefing/script for briefer(s)

Schedule a briefing

Prepare a custom case statement and request materials

Determine the solicitation team

Prepare a briefing/script for solicitor(s)

Schedule the request meeting

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IV. BOARD TRANSFORMATION

Board Development:

Recruit, Engage and Transform

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Board Transformation

Best led from the inside

Requires a champion

Starts with understood roles and guidelines

Restate/reprioritize purpose

Recruit for transformation

Retirement is a natural part of this process

Requires ongoing attention to maintain

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Boards and Fundraising: Good to Great

Ask These Questions..

What is our mission?

How do we further it?

Do we have the leadership to achieve it?

Do we have the resources to fund it?

Are we equipped to raise the needed resources?

Are we protected?

What would we do with $1 million dollars?

What is our/my role?

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Board Giving Essentials

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Questions