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Nonprofit Board of Directors Best Practices

Nonprofit Board of Directors Best Practices



In this 1-hour webinar hosted by CharityNet USA, we review the 20 best practices for nonprofit board of directors. For more information on nonprofit startup, visit: ...

In this 1-hour webinar hosted by CharityNet USA, we review the 20 best practices for nonprofit board of directors. For more information on nonprofit startup, visit: charitynetusa.com/nonprofit_startup.php



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    Nonprofit Board of Directors Best Practices Nonprofit Board of Directors Best Practices Presentation Transcript

    • Key Speaker Melanie Swift M.N.M Director of Nonprofit Services CharityNet USA Moderator Nicole Roach Marketing Coordinator 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: Nicole@bizcentralusa.com • Melanie Swift: Melanie@bizcentralusa.com • Visit www.CharityNetUSA.com or Call 407-857-9002 www.twitter.com/charitynetusa Facebook Fan Page: CharityNet USA