Change is Inevitable, Progress is Optional...It is Time for Progress, Achieve

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ECAC

Change is Inevitable, Progress is Optional…It is Time for Progress!

October 17, 2008

Dave Sternberg Vice President / Partner

[email protected] 317-638-3563


Your Personal Network

Think about your network of friends, relatives and business associates. These could be the folks you have met through social activities, work, volunteer activities, sport s and recreation, your kids, family, school, church, neighbors etc.

List the names of people who meet the following criteria: 1) they actually like you or at least respect you, 2) you are reasonably sure they have disposable income and are living hand to mouth, and 3) there is some linkage your service area or your mission. You will not share this list, its private. This is not a list of people you will ask for money!!

Names: A B

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2007 Giving (Giving USA*)

$306.39 Billion Sources 74.8% Individuals 12.6% Foundations 7.6% Bequests 5.1% Corporations Where Contributions Went

33.4% Religion 14.1% Education 9.7% Human Services 9.1% Foundations 7.7% Unallocated 7.6 % Health 7.4% Public-Society Benefit 4.5% Arts, Culture, Humanities 4.3% International Affairs 2.3% Environment/Animals

* Giving USA is published by the Giving USA Foundation and compiled by The Center on Philanthropy at Indiana University


Consider for a minute the competitive landscape!

______________________________________

Growth of Sector

1982: 322,000

2007: 1,900,000


Consider how individuals give!!

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85% of $306 billion = $260 billion

$260 billion = 85% in cash / 15% in assets

The great imbalance…if you want to raise real money it is in the assets and that takes

relationships!


Team Process Donor Mission Cultivation Linkage Board Solicitation Ability Staff Stewardship Interest


Organizational Development

Stage I Organizations

Founders dominate

Limited Sources of Funding

Board involved primarily with operation and program delivery

Lack of clear board expectations

Lack of future vision

Modest or no expectations to fundraise or give

Board the operates as a committee of the whole


Stage II Organizations

Diversified funding

Board primarily involved with fund development, stewardship and advocacy

Clear board expectations that are enforced

Focused future vision

Staff driven programs

Directors chosen on background, merit and skills

Directors selected at large

Functioning nominating procedure

Board focused on critical issues


Basic Responsibilities of Nonprofit Boards

1. Determine the organization’s mission and purpose. A statement of mission and purposes should

articulate the organization’s goals, means, and primary constituents served. It is the board’s responsibility to create the mission statement and review it periodically for accuracy and validity. Each individual board member should fully understand it.

2. Select the chief executive. Board’s must reach consensus on the chief executive’s job description

and undertake a careful search to find the most qualified individual for the position.

3. Support the chief executive and review his or her performance. The board should ensure that

the chief executive has the m oral and professional support he or she needs to further the goals

of the organization. The chief executive, in partnership with the entire board, should decide upon a periodic evaluation of his or her performance.

4. Ensure effective organizational planning. As stewards of the organization, boards must actively participate with the staff in an overall planning process and assist in implementing the plan’s goals.

5. Ensure adequate resources. One of the board’s foremost responsibilities is to provide adequate

resources for the organization to fulfill its mission. The board should work in partnership with

the chief executive and development staff, if any, to raise finds from the community.

6. Manage resources effectively. The board, in order to remain accountable to its donors and the

public, and to safeguard its tax-‐exempt status, must assist in developing the annual budget and ensuring that proper financial controls are in place.

7. Determine, monitor, and strengthen the organization’s programs and services. The board’s role

in this area is to determine which programs are the most consistent with the organization’s

mission, and to monitor their effectiveness.

8. Enhance the organization’s public standing. An organization’s primary link to the community,

including constituents, the public, and the media, is the board. Clearly articulating the organization’s mission, accomplishments, and goals to the public, as well as garnering support from important elements of a comprehensive public relations strategy.


9. Ensure legal and ethical integrity and maintain accountability. The board is ultimately responsible for ensuring adherence to legal standards and ethical norms. Solid personnel policies, grievance procedures, and a clear delegation to the chief executive of hiring and

managing employees will help ensure proper decorum in this area. The board must establish pertinent policies, and adhere to provisions of the organization’s bylaws and articles of incorporation.

10. Recruit and orient new board members and assess board performance. All boards have a

responsibility to articulate and make known their needs in terms of member experience, skills,

and many other considerations that define a “balanced” board composition. Boards must also orient new members to their responsibilities and the organization’s history, needs, and challenges. By evaluating its performance in fulfilling its responsibilities, the board can recognize

its achievements and reach consensus and which areas need to be improved.

Source: BoardSource www.boardsource.org


Evaluating the Board!

Rate your board in each of the ten roles…this is not an evaluation of the organization. 4 = do this well, 3= do this at satisfactory level, 2 = do it at unsatisfactory level, 1 = do not do at all or very poorly

Responsibility #1 _____ Responsibility #2 _____ Responsibility #3 _____ Responsibility #4 _____ Responsibility #5 _____ Responsibility #6 _____ Responsibility #7 _____ Responsibility #8 _____ Responsibility #9 _____ Responsibility #10 _____


The Board Building Cycle (BoardSource)

Hughes,Lakey and Bobowick, 2003

1)Identify the kinds of skills, knowledge, connections and experience needed on the board to move the organization forward. What do we have and what it missing? 2) Cultivate potential board members through thoughtful interaction over time. 3) Recruit potential board members by describing what is needed for the organization. Detail what will be expected and answer all questions or concerns. 4) Orient new board members to the organization and to the board - the organization’s program and history or big issues. To board service through minutes, bylaws, committee lists, rosters, key staff members, etc. 5) Engage all board members with an eye to their skill set. Assign a board “buddy” and ensure the experience is good for all. 6) Educate the board on the subject that will make them excel in their role. Internal and external issues, mission moments and open discussion encourage participation. 7) Rotate members off the board. Establish and adhere to term limits. Do not automatically re-elect. Establish new thinking and develop new leadership. 8) Evaluate board and board member performance. Identify ways to improve and encourage self assessment. 9) Celebrate every small (and large) achievement of the board! Highlight the many things that are going well and make room for some humor!


Board Building Matrix

This worksheet can be adapted by organizations to assess their current board composition and plan for the future. The governance committee can develop an appropriate grid for the organization and then present its findings to the full board.

In considering board building, an organization is legally obligated to follow its bylaws, which may include specific criteria on board size, structure, and composition. Or the bylaws may need to be updated to incorporate and acknowledge changes in the environment and community that have made changes in the board structure necessary or desirable.

Remember, an organization will look for different skills and strengths from its board members depending on its stage of development and other circumstances.

Members Current Members Prospectives

Age 1 2 3 4 5 6

A B C D E F

Under 18

19-34

35-50

51-65

Over 65

Gender

Male

Female

Race/Ethnicity/Disability

African American/Black

Asian/Pacific Islander

Caucasian

Hispanic/Latino

Native American/Indian

Other

Disability

Resources

Money to give

Access to money

Access to other resource

Available for visits, grant writing


1 2 3 4 5 6

A B C D E F

Community Connections

Religious organizations

Corporate

Education

Media

Political

Philanthropy

Small business

Social services

Other

Qualities

Leadership skills

Willingness to work

Personal connection with the organization’s mission

Personal Style

Consensus builder

Good communicator

Strategist

Visionary

Areas of Expertise

Administration/Management

Entrepreneurship

Financial Management

Accounting

Banking and Trusts

Investments

Fundraising

Government

International Affairs

Law

Marketing, Public relations


Human resources

Strategic planning

Physical plant(architect,engineer)

Real Estate

Representative of clients

Special Program focus (education,

health, policy, social services

Technology

Numbers of years (or terms)on

the board


BOARD MEMBER RESPONSIBILITIES General expectations: 1. Be familiar with the organization’s mission, policies, programs, strengths and

opportunities for growth. 2. Help lead the board and take on special assignments. 3. Listen attentively to feedback about our organization and guide individuals to follow

established policies and procedures. 4. Suggest future board members. 5. Speak on behalf of the board, but only when authorized persons ask you to. 6. Stay abreast of the trends that affect our organization’s field of interest. 7. Be flexible and bring a sense of humor to your board tasks. Meetings: 1. Participate knowledgeably in all board and committee meetings and other activities. 2. Ask relevant questions while supporting the majority decision. 3. Keep executive session information confidential. 4. Suggest agenda items for meetings so no significant policy matters are overlooked. Relationship with staff: 1. Offer relevant advice and support. 2. Avoid asking special favors of the staff until you speak with the director. Avoiding conflict of interest: 1. Keep the entire organization’s interest at heart and don’t cater to special interest groups. 2. To avoid even the appearance of a conflict of interest, disclose any possible conflicts to

the board chair. 3. Bring a sense of fairness, ethics, and personal integrity to each task or decision. 4. Never accept gifts from (or give them to) anyone who does business with the

organization. Fiduciary responsibility: 1. Carefully consider the control and transfer of funds. 2. Read and understand the organization’s financial statements and participate to help the

board

Fundraising: 1. Make an annual personally sacrificial gift. 2. Assist the development committee and/or staff by with fundraising strategies by

engaging your own contacts in the community (corporations, foundations, individuals) and by participating in fundraising activities.


Constructing Better Board Meetings

Meeting date: ___________ 1) The issues we covered at this meeting were:

Less important 1 2 3 4 5 Essential

2) The materials provided were:

Not helpful 1 2 3 4 5 Indispensable

3) Today’s discussion concerned primarily:

Operations 1 2 3 4 5 Policy and Strategy

4) What might we have done differently to improve our meeting today? ________________________________________________________________ ________________________________________________________________

________________________________________________________________

5) What was the most valuable contribution we made to the organization’s welfare today?

_________________________________________________________________ _________________________________________________________________ _________________________________________________________________

6) Did we use the time allotted for the meeting wisely, if not why?

_________________________________________________________________

_________________________________________________________________ _________________________________________________________________

7) What are the most important topics we should address at our next meeting? __________________________________________________________________ __________________________________________________________________


Individual Board Members Self-Evaluation

Name: _____________________ Yes No Not sure

1. Do I understand and support the mission ___ ___ ____

of the organization?

2. Am I knowledgeable about the organization’s

programs and services? ___ ___ ____

3. Do I follow trends and important developments

related to this organization? ___ ___ ____

4. Do I assist with fundraising and /or give a

personally significant annual gift to the organization? ___ ___ ____

5. Do I read and understand the organization’s

financial statements? ___ ___ ____

6. Do I have good working relationship with the chief executive? ___ ___ ____

7. Do I recommend individuals for service to this board? ___ ___ ____

8. Do I prepare for and participate in board meetings and committee meetings? ___ ___ ____

9. Do I act as a good-‐will ambassador to the organization? ___ ___ ____

10. Do I find serving on the board to be a satisfying and rewarding experience? ___ ___ ____

Comments: _________________________________________________________________


Governance Committee Job Description

The governance committee is responsible for ongoing review and recommendations to enhance the quality and future viability of the board of directors. The work of the committee revolves around the following five major areas:

1. Board Role and Responsibilities • Leads the board in regularly reviewing and updating the board’s statement of its roles

and areas of responsibilities, and what is expected of individual bard members. • Assists the board in periodically updating and clarifying the primary areas of focus for

the board, and helps shape the board’s agenda for the next year or two, based on the

strategic plan. 2. Board Composition

• Leads in assessing current and anticipated needs to board composition, determining the

knowledge, attributes, skills, abilities, influence, access to resources the board will need to consider in order to accomplish future work of the board.

• Develops a profile of the board as it should evolve over time

• Identifies potential board member candidates and explores their interest and availability for the board

• Nominates individuals to be elected as members of the board

• In cooperation with the board chair, contacts each board member to assess his or her continuing interest in board membership and term of service and works with each board member to identify the appropriate role he or she might assume on behalf of the

organization. 3. Board Knowledge

• Designs and oversees a process of board orientation, including gathering information

prior to election as board member and information needed during the early stage of board service.

• Designs and implements an ongoing program of board information arid education.

4. Board Effectiveness • Initiates periodic assessment of the board’s performance. Proposes, as appropriate,

changes in board structure and operations. • Provides ongoing counsel to the board chair and other board leaders on steps they

might take to enhance board effectiveness.

• Regularly reviews the board’s practices regarding member participation, conflict of interest, confidentiality, etc., and suggests improvements as needed.

• Periodically reviews and updates the board’s policy guidelines and practices.


5. Boards Leadership • Takes the lead in succession planning, taking steps to recruit and prepare for future

board leadership. • Nominates board members for election as board officers.


Structuring the Board for Board Work! Board or CEO

Committee ______________ ____ ____ Committee ______________ ____ ____ Committee ______________ ____ ____ Committee ______________ ____ ____ Committee ______________ ____ ____ Committee ______________ ____ ____ ______________________________________________________________________ Task force ______________ ____ ____ Task force ______________ ____ ____ Task force ______________ ____ ____ Task force ______________ ____ ____ Task force ______________ ____ ____


Engaging Board Members: Now That You have Them

Fundraising • Engage Board Members in Fundraising -‐ See Fearless

Fundraising for Nonprofit Boards by Worth George

Serving On A Standing Committee • Executive Committee • Governance Committee • Resource Development

Serving On A Task Force

• Personal Policy Review • Audit • Marketing • Bylaws Review • Strategic Planning • Technology Audit • Capitol Repairs • Annual Awards Gala • Policy Review & Creation • Board Assessment

Board Activities

• Annual board retreat and planning session • Community nonprofit activities –i.e., United Way events, etc. • Community sponsored educational opportunities


Meeting Format – Getting to Critical Issues A consent agenda is a nifty parliament trick that packages routine items together for board

approval but NOT discussion. Items most often appropriate for the consent agenda include of bylaws revisions, financial reports, meeting dates, board member nominations, contracts under a specified amount, etc.

The consent agenda avoids creating a permanent “rubber stamp” board by allowing any board member to have an item removed from the consent agenda if he/she thinks it warrants

discussion. Of course, this requires that the board members receive supporting materials well in advance of the meeting.

What is consent? A consent agenda is a component is a component of a meeting agenda that enables the board

to group routine items and resolutions under one umbrella. As the name implies, there is a general agreement on the procedure. Issues in the consent package do not need any discussion before a vote. Unless a board member requests the removal of an item ahead of time, the entire

package is voted on a t without any additional explanations or comments. Because no questions or comments are allowed on the content, this procedure saves time.

What items should be included in a consent agenda? Routine, standard, non-‐controversial, and self-‐explanatory are adjectives that well describe

consent agenda items. Here is some example: -‐Minor changes in a procedure (e-‐mail is added as an acceptable method of communication to announce a change in a meeting schedule)

-‐Routine revisions of a policy (essential change of dates) -‐Updating documents (address change for the main office) -‐Standard contracts that are used regularly (confirmation of using the traditional in-‐house

contract with a new vendor) -‐Confirmation of conventional actions that are required in the bylaws (after election of new officers, signatory authority for a bank account or acceptance of gifts)

-‐Committee and previous board meeting minutes


How do we make a consent agenda function efficiently?

Information on the items to be included in a consent agenda is distributed to board members well ahead of the meeting. This allows thorough examination of the routine items without using

up valuable meeting minutes. If a board member has a question, he or she can contact a referenced colleague to clarify a

concern. If this is not helpful enough, during the meeting before a vote, any discussed separately. To keep the process intact and efficient, this is the only comment allowed concerning the contents of the consent agenda. To streamline the process even more, board

members could be invited to contact the board chair before the meeting to request that an item be removed and placed on the regular agenda.

What precautions need attention? Although the use of consent agendas is becoming more common, there are still many people

who are not familiar with this meeting procedure; their use needs to be well explained to all board members to ensure that everyone understands both the rationale and the steps involved. To achieve the objective of a consent agenda-‐to save valuable discussion time for meaningful

issues-‐ it is important to make sure that board members receive support materials well before voting and that they familiarize themselves with the details.

When putting the agenda together, the board chair and the chief executive need to pay special attention to include only items that are suitable for mechanical processing. Board members

need to be vigilant so that debatable issues do not accidentally pass through without appropriate deliberation.


FUNDRAISING IS… Consider for a minute what actions can be taken to support fundraising. Contact 5 to 10 prospects personally by phone Cultivate/steward event attendees Call donors and thank them for their gift Send a personal note to lapsed donors Send a solicitation on personal letterhead Make a planned gift Solicit a gift from those in your sphere of influence Indentify future board members Accompany staff on cultivation/solicitation calls Speak frequently about the organization, its programs/services Send a thank you note to donors Host an event you in your home Submit names for a fundraising campaign Identify potential corporate donors


How Can I Help!

Name:______________

Select the five things you are willing to do this year to advance our fund development effort:

#1)__________________________________________________________________________

#2)__________________________________________________________________________

#3)__________________________________________________________________________

#4)__________________________________________________________________________

#5)__________________________________________________________________________


Potential Prospect Plan

Your Name: ________________________________

Please list below the name of at least two prospective donors to your organization. These should be individuals who have some level of linkage and ability. They may also b e current donors who are only giving at a fraction of their potential. Once you list their name think about what it will take to cultivate an interest in our organization. What steps can you follow, with the help of staff, to move their relationship forward?

Prospective Donor: _______________________________

Cultivation Plan:

Prospective Donor: ________________________________

Cultivation Plan:

Prospective Donor: ________________________________

Cultivation Plan:

Documents

Change is Inevitable, Progress is Optional...It is Time for Progress, Achieve