Building the Board Your Organization Needs

Presented by Indiana Youth Institute

Community Foundation of Howard County 3/8/2007

Idea

Developing

Operational

Advancing

Decline

TerminalLife Cycles

Model

Turnaround

Non-Profit

The Life Cycles Model

B&GC Story 1994 2007

Budget $93,000 $1,802,905

Membership 211 3,000

Staff 3 72

Annual Campaign $800 $500,000

Outreaches 0 12

Endowment $100,000 $2.5m

Number of Boards 1 5

United Way % 71% 7%

Who owns the Organization?

According to the state of Indiana and the US Government, the board of directors are the “Owners” of the organization.

Board members are the gate keepers and assure that the mission, vision and values are in line with community needs and expectations.

The Board

Authorized by the state and the organization’s supporters, the board governs the life of the club; establishes mission and direction, ensures the

necessary resources, and develops guiding principles.

retains ultimate responsibility and power; is accountable to the public trust and to the

club’s constituencies.

BOARD DEVELOPMENT IS THE KEY!!

The Chief Professional Officer

Authorized by the board, the chief professional officer manages the daily affairs of the organization. supports the board with strategic information,

ideas and connections; manages the affairs of the organizaton by

ensuring appropriate planning, coordination and implementation of the program established by the board to support the mission;

retains immediate, or operational responsibility and power.

CPO (Executive Director, President, CEO)

Recommend Annual Objectives.Plan & Implement Programs.Prepare Budget.Manage Budget.Employ & Supervise Staff.Implement Board & Community Decisions.Coordinate Resource Development Effort.

Board Responsibilities

Set Policy. Resource Acquisition. Assurance of Effective Leadership Planning. Interpret Agency to Community. Recruit New Board Members. Sign Legal Documents. Approve Budget. Employ and Evaluate CPO.

Board Development Process

Identify – Board profiling requires the board to assess its skill sets and characteristics to learn where there are gaps that need to be filled.

Recruiting – Once the board identifies the gaps, a list of prospective board members is developed and reviewed based on the needs of the organization.

Board Development Process

Orientation – New board members need an orientation to learn about the agency and also what the expectations and responsibilities of being a board member are.

Engage – Board members need to be and feel connected to the organization and the mission.

Board Development Process

Education – All board members need continuing education. The board leadership, staff and volunteers need to continue being educated on trends, new programs and legislation that impacts their agency or funding streams.

Board Development Process

Evaluate – Your Organization is only as strong as its board. Constant evaluation of programs, funding sources and staff and board effectiveness is critical to long term survival.

Celebrate – Board volunteers deserve to be recognized personally and publicly for their efforts.

Roles of the Board

Duty of Care – Using your best judgment. It does not mean being perfect or not making mistakes. Have you used reasonable caution in making decisions?

Duty of Loyalty – Putting your personal and professional interests aside for the good of the organization.

Roles of the Board

Duty of Obedience – Using funds for the purposes for which they were given. Stay true to mission and focused on program development. Follow all laws and regulations that apply to non-profit work.

In a nutshell

Determine mission/IdentitySelect/Evaluate CPOEnsure strategic planning processEnsure adequate resourcesManage resources effectivelyEnhance community standingEnsure legal/ethical integrityBoard is self-perpetuating

Rule of thumb:

Good Program Results Build and attract great boardsWhich raise lots of dollarsWhich are then re-invested back into

program expansion.

Top Ten Key Characteristics of Strong Boards

Strong Committees that do the work of the board

Outstanding Board orientation/engagement

Establish a planning culture.Develop strong community leaders who

have skill sets to grow organizationKeep board meetings focused and

meaningful

Top Ten Continued

CEO-Board President must communicate100% of the board gives financiallyMission/Vision/Value statements are read

before each board meeting. They guide your decision making process

Be an ambassador. Keep the agency in your “Frontal Lobes”.

Own don’t rent.

Engaging the Board Member

Make the time to attend meetings and programs.

Become a learner. Trends, non-profit work, funding issues.

Respect the staff and hold them accountable for results.

See the big pictureHave Courage