Learn the action steps you must implement to ensure your nonprofit's board of directors is not only actively engaged but also passionate and willing to put in the time required to see your nonprofit succeed.

1. 5 Essential Steps to Building a
Better Board for Your Nonprofit
Richard Wolf, CPA, CGMA, CFE, CVA

2. Introductions
Richard Wolf, CPA, CGMA, CFE,
CVA
Principal at Gross Mendelsohn
20 years of public accounting
experience in the nonprofit sector

3. 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

4. Start watching
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5. Define board responsibilities
Action Step #1

6. 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

7. Board Responsibilities
Hire and evaluate the executive officer
Determine and monitor the organization’s
programs and services
Set strategic objectives

8. 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

9. Board Responsibilities
Ensure legal and ethical integrity
Ensure adequate resources are available to the
organization

10. Board Committees
Executive
Committee

11. Board Committees
Executive
Committee
Audit
Committee

12. Board Committees
Executive
Committee
Finance
Committee
Audit
Committee

13. Board Committees
Executive
Committee
Finance
Committee
Audit
Committee
Development
Committee

14. Board Committees
Investment
Committee

15. Board Committees
Investment
Committee
Compensation
Committee

16. Board Committees
Investment
Committee
Compensation
Committee
Strategic Planning
Committee

17. Identify the right (and wrong) board
members for your organization
Action Step #2

18. How many board members should
my organization have?

19. The average nonprofit board size in
the United States is 17 members.

20. Is a bigger board better?

21. Is a bigger board better?
Burden on director and staff

22. Is a bigger board better?
$ Costs associated
Burden on director and staff

23. Is a bigger board better?
$ Costs associated
Burden on director and staff
Enough for a healthy debate

24. Don’ts of board composition

25. Don’ts of board composition
Going committee crazy

26. Don’ts of board composition
Playing an (odd) numbers game
1 2 3

27. Don’ts of board composition
Not having enough seats at the table

28. Potential board members to consider

29. Passionate about your
organization’s mission

30. Understand your
organization’s clientele

31. Service professionals

32. Business leaders

33. Young professionals

34. Board Composition Traps

35. Board Composition Traps
Skills trap

36. Board Composition Traps
Skills trap
Free services trap

37. Board Composition Traps
Skills trap
Free services trap
Money/connection trap

39. Improve board accountability
Action Step #3

40. Who is the board accountable to?
Supporters
Members
Beneficiaries
Employees
Grantors
Collaborators

41. Principles of good governance

42. Legal compliance and public disclosures

43. Legal compliance and public disclosures
Effective governance

44. Legal compliance and public disclosures
Effective governance
Strong financial oversight

45. Legal compliance and public disclosures
Effective governance
Strong financial oversight
Responsible fundraising

46. Two aspects of board accountability

47. Two aspects of board accountability
Individual board
member accountability

48. Two aspects of board accountability
Individual board
member accountability
&
The board’s collective
responsibility

49. Individual Board Member
Accountability
Attend board meetings
Serve on committees
Be knowledgeable about the organization

50. Individual Board Member
Accountability
Personal financial contribution every year
Act as an advocate

51. Board’s Collective Accountability
Participation
Composition
Tenure

52. Board’s Collective Accountability
Participation
Composition
Tenure
Recruitment
Officers
Meetings

53. Board’s Collective Accountability
Self-assessment of the board
Annual assessment of the CEO
Address issues head-on
Lead with authenticity

54. Create leadership transition plans
Action Step #4

55. Change in Executive Director
 Candid assessment of organization’s
strengths and weaknesses
 Candid assessment of outgoing executive
director’s strengths and weaknesses

56. Change in Executive Director
 Communication is key throughout the
process
 Staff needs to see that the board is leading
a thoughtful transition

57. 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

58. Board Succession
Define roles of board leadership positions

59. Board Succession
Define a development process
for future board leaders

60. Board Succession
Define a process of succession

61. Board Succession
On-boarding or orientation
for new board leaders

62. Boost board engagement
Action Step #5

63. Meaningful Work
Connected to the Mission
Part of the Process
Active Participation
Why do Board
Members Feel
Engaged?

64. Practice Pointers

65. 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

66. Include bios of all board
members in board
orientation materials
Find the right balance of
communication
Show appreciation
Board contracts
General Pointers

67. Distribute board packets prior to
meeting to:
Anticipate key questions
Get committee reports in writing
Use name tags/tents at all board
meetings
Provide a list of all internal
acronyms
Board Meeting Pointers

68. Board chair should lead meetings,
not the Executive Director
Structure board meeting agendas
around important questions, not
minor details
Board Meeting Pointers

69. Focus not on “telling” and
“selling,” but on “testing,”
“consulting” and “creating”
Adjourn on time, or agree to stay
later
Board Meeting Pointers

70. Contact me
RWolf@gma-cpa.com
800.899.4623
www.gma-cpa.com

71. FREE QUIZ
Start the quiz now
8 Questions to Discover the
Type of Board Member Your
Nonprofit is Missing