3. There are more than 500 active not for profits in El Paso
County – Big ones, Small ones and everything in between.
Board members represent the members and/or participants
in the organization
A board of directors is the group of people that represents
the interests of the ―owners‖ — and for non-profits, the
community.
The board, acting as governors or trustees, is charged to
protect the public purpose — to ensure that the organization
operates efficiently and legally and that funds are used
responsibly and as effectively as possible.
Nonprofit Organizations
4. -SHARED VISION
-ESTABLISHED SET OF VALUES
-EXTERNAL LENS
-OUTCOME-DRIVEN
-FORWARD THINKING
-PROVIDE PERSPECTIVE
-PROACTIVE
-ACCOUNTABLE
-EFFECTIVE/EFFICIENT
DECISIONS
Characteristics
5. -THE REASON FOR EXISTING
-ESTABLISH IT
-SUPPORT IT
-KNOW IT…VERBATIM
-BE PASSIONATE ABOUT IT
Mission
6. -Develop strategic plan
(3-5yr)
-Review mission and vision
-Conduct SWOT analysis
-Establish goals, objectives,
action plans
-Monitor implementation
Strategic Plan
7. DUTY OF CARE
-BE REASONABLY INFORMED ABOUT ACTIVITIES
-PARTICIPATE IN GOOD-FAITH DECISION-MAKING
DUTY OF LOYALTY
-EXERCISE POWER IN THE BEST INTEREST OF THE
ORGANIZATION
-AFFIRM CONFLICT OF INTEREST POLICY (FULL
DISCLOSURE, ABSTENTION FROM VOTING, AVOID
SELF-INTEREST)
DUTY OF OBEDIENCE
-COMPLY WITH APPLICABLE FEDERAL, STATE, LOCAL
LAWS
-ADHERE TO BYLAWS AND ARTICLES OF
INCORPORATION
-BE THE GUARDIAN OF THE MISSION
Legal
8. -APPROVE PERSONNEL/
OPERATIONAL POLICIES
-REVIEW POLICIES (18 MOS.)
-HIRE EXECUTIVE DIRECTOR WHO
HIRES OTHER STAFF.
-ESTABLISH ANNUAL OBJECTIVES FOR
EXECUTIVE DIRECTOR
-EVALUATE ED ANNUALLY
Human Resources
9. FUNDRAISING IS CRUCIAL!!!
-TO MEET CURRENT PROGRAM
NEEDS
-TO EXPAND SERVICES
-TO RAISE AWARENESS
-TO SUPPLY UNRESTRICTED FUNDS
-TO DIVERSIFY FUNDING STRUCTURE
Fundraising
10. WHY DONORS GIVE
-COMMITMENT TO MISSION, CASE
STATEMENT, PERSONAL INVOLVEMENT
-CONTRIBUTION TO QUALITY OF LIFE
-GRATITUDE FOR SERVICE PROVIDED
-RECOGNIZE LACK OF RESOURCES IN
SYSTEM
-RECOGNITION, PRESTIGE
-MORAL OBLIGATION, GUILT, FEAR
-MEMORIAL, TAX BENEFITS
-GOOD INVESTMENT
Fundraising
14. -UNDERSTAND THE FINANCIALS
-APPROVE AND MONITOR THE
BUDGET
-INDEPENDENT AUDITOR THAT
REPORTS TO THE BOARD
-MANAGE RISK (D&O, RIDERS,
SPECIAL POLICIES)
-ENSURE PAYROLL TAXES ARE BEING
PAID
Financial
15. 2 BASIC FINANCIAL STATEMENTS
-INCOME STATEMENT/ PROFIT&LOSS
/ P&L
-BALANCE SHEET /STATEMENT OF
FINANCIAL POSITION
Financial
17. INCOME STATEMENT VS. CASHFLOW
-AN ORGANIZATION CAN MAKE A PROFIT
& SIMULTANEOUSLY EXPERIENCE A
NEGATIVE CASHFLOW; AND VICE VERSA
REASONS:
-FUNDING CYLCES
-REIMBURSING GRANTS
-RECEIVABLES
-ACCRUAL ACCOUNTING METHOD
Financial
