Wall of
Wonder
Before we start….
Use notes to
highlight successes in
your organization’s
history. Place on
WoW in appropriate
area.
9/28/2016
 1 success per note
 Write with
markers
 Include when you
joined!
[email protected]
501c³ – Taking Nonprofits to the Third Power
1
Roles and Responsibilities
of an
Effective Nonprofit Board
March 6, 2016
Presenter: Mary Beth Harrington CVA, Passionate Nonprofit Expert
501c³ ‐ Taking Nonprofits to the Third Power
972‐839‐9960
[email protected]
www.mbharrington501c3.com

Begin and End on Time

Sign in Sheets/Business Cards

Honor ALL Ideas

Breaks/Bathrooms

ONE Voice at a Time

Q & A

Table Tents and Toys

Electronics Muted

Handouts sent Afterwards
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
3
Introductions





Name
Role on the Board
Tenure on the Board
Job/Occupation/Calling
If you were not here today, what would you be doing?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
4

Introduce Yourself ‐ You may be a celebrity but don’t assume we
know who you are!

How do you Spend Most of your Time? – A way of asking
“what do you do for a living?”

If you could be Anywhere else on Earth right now – Not that you would want to be – Where would that be?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
5
Mary Beth Harrington, CVA










10 years corporate marketing, public relations, advertising (psychiatric hospitals, DFW Tourism, cinnamon rolls)
Carter BloodCare, Marketing Director Dallas Zoo, Graphics Specialist
Dallas Public Library, Volunteer Coordinator
Volunteer Center of North Texas – Agency Relations Director
Austin Public Library Foundation – Executive Director
TANO – Community Outreach Director
San Antonio Area Foundation – Curriculum Development Director
501c³ ‐ Taking Nonprofits to the Third Power – President
Leadership Texas Class of 2015
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
6







A Few of Our Clients…
 Keep Texas Beautiful
Texas CASA
US Tennis Association (USTA)  Literacy Texas
Meals on Wheels of America  Texas Library Association
Texas Association of Museums  Healy Murphy Center
Habitat for Humanity Texas  San Antonio Nonprofit Texas Association of Nonprofit Council
Organizations (TANO)
 DFW AFP Philanthropy Arkansas Literacy Council
Conference
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
7
President = CEO
Board Chair
Executive Director
Executive Minister
Governance = Nominations Committee
Executive Committee or Council = Board Officers
Executive Session = Board Meets w/out Staff
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
8
 Stages of a Nonprofit
 Leading with Intent
 Board Responsibilities…
 Governance
 Fiduciary
 Board Management
 Board Recruitment
 Sustainability and Advocacy
 Evaluation
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
9
Childhood
Infancy
Stages of a Nonprofit
Teenager
9/28/2016
Adult
[email protected]
501c³ – Taking Nonprofits to the Third Power
10
Nonprofit Organization’s Pivotal Point
0.6
0.5
0.4
0.3
0.2
0.1
Option 1: Stay the
course
Option 2: Allow
change to happen
Option 3: Plan for
change
0
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
11
Session Information




Office of Attorney General of Texas
Secretary of State of Texas
Internal Revenue Service
BoardSource – Certification Pending

Leading with Intent:
A National Index of Nonprofit Board Practices http://leadingwithintent.org/leading‐intent/
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
12

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



98% do NOT pay board members an honorarium
88% of boards, CEO is NOT a voting member
96% have director’s and officers’ insurance 89% get an annual financial audit
88% have a whistleblower policy
89% have a document retention and destruction policy
97% have a written conflict of interest policy
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
13



85% distribute the Form 990 to the board before filing
80% have fewer than 20 members
Your board is not “packed” with influential connectors but rather reflects the community you serve.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
14


Boards demonstrate room for improvement.

Boards earned a 2.65 or B‐ average

Better at technical tasks, such as financial oversight and compliance, than they are at adaptive work related to strategy and community outreach
Board members need to speak out more.


9/28/2016
Board members essential to successful community outreach and advocacy
Savvy nonprofits making advocacy an explicit priority. [email protected]
501c³ – Taking Nonprofits to the Third Power
15

Best‐in‐class boards pay attention to culture and dynamics.



9/28/2016
The real secret to board success — leadership culture — is difficult to measure. Leadership culture requires having the right people on the board, achieving clarity around roles and responsibilities, and educating and engaging board members. Strengthening the culture requires leading with intent: thoughtful planning, determined dedication, and collective commitment from board members.
[email protected]
501c³ – Taking Nonprofits to the Third Power
16

Board members need to embrace their roles as fundraisers.


Perennially, fundraising remains the great weakness of nonprofit boards. Finding financial stability amid constant change requires strategic leadership.

9/28/2016
In the wake of the economic downturn, nonprofits continue to find their funding declining and the demand for their services rising. [email protected]
501c³ – Taking Nonprofits to the Third Power
17
Not Your Father’s Nonprofit Board
Chances are previous nonprofit boards on which you have served, have been ineffective
 More than attending a board meeting
 Consider this your new part‐time job
 Requires 100% commitment from 100% board membership
 Should be considered an honor, privilege and duty to serve
If you have seen 1 Nonprofit You have seen 1 Nonprofit
Board,
Board

9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
18
Section Summary:
What Do You Commit To Do
To Be a More Effective
Board Member?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
19
Attributes of an Effective Nonprofit Board Member

Commitment to the mission of the organization.

Understanding of the board’s governance roles.

Active involvement in board activities, committees.

Thinking and acting strategically; not involved in day‐to‐
day management of the organization.

Abiding by the Duties of Care, Loyalty and Honesty.

Supporting the organization both financially and through
advocacy.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
20
Responsibility of
Governance
Section 1
Do You Know Your Role?
Scenario 1 –
o
o
o
You stop by the office at 9:30am on a Wednesday to drop something off.
You notice the Executive Director is not there.
What do you do?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
22
Strategic Direction
The Board has ultimate responsibility for setting the organization’s Strategic Direction. 


9/28/2016
Annual planning retreat.
Strategic plan is kept alive.
Progress reports at every Board meeting.
[email protected]
501c³ – Taking Nonprofits to the Third Power
23
Governance
The Board has ultimate responsibility for the effective and efficient Governance of the organization.




9/28/2016
Policies and procedures for board operation.
Bylaws Oversight (finances, planning, etc.)
Training (orientation)
[email protected]
501c³ – Taking Nonprofits to the Third Power
24
Mission and Purpose
The Board has ultimate responsibility for ensuring the organization operates to serve its Mission and Purpose. 


9/28/2016
Mission‐driven decision making.
Mission printed on all board and committee agendas.
Organizational culture prevents mission‐drift.
[email protected]
501c³ – Taking Nonprofits to the Third Power
25
Roles and Responsibilities

Board Members – Works as a team to support the mission of the organization and creates the vision for the organization’s future.

Board Chair – Acts as liaison between the Board Members and the Executive Director as well as the Board Members and each other.

Executive Director – Acts as a liaison between the Board and the Staff and handles day to day operations for the organization.
See Section 6.02(d) 9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
26
What Will You Commit To Do?

Governance: 
Strategic Planning

Board Retreat

Board Policies and Procedures

Oversight

Board Training

Board Orientation

Mission on Minutes
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
27
Fiduciary
Responsibilities
Section 2
Do You Know Your Role?
Scenario 2 –
o
o
o
o
o
A staff member has an idea to provide more services to clients.
They approached the Executive Director who turned down the idea.
They know it is a good idea.
You see them at an event, ask how things are going, they tell you the entire story.
What do you do?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
29
Board Members as Fiduciaries





Act prudently in handling organization’s resources.
Even when board members represent a specific group, primary responsibility must be to organization as a whole.
Personal liability can result should board member, breach standards of fiduciary responsibility.
As steward of organization’s resources, act for the good of organization, rather than personal benefit.
Keepers of organization’s mission and therefore every action geared towards forwarding the organization’s mission.
2009 BoardSource Legal Responsibilities of Nonprofit Boards
[email protected]
30
501c³ – Taking Nonprofits to the Third Power
‐
9/28/2016
Evolution of Board’s Role
Then
 Nonprofits should be run like a business
 Manage day to day operations
 Sage advisors of best practices

9/28/2016
Now
 Sophistication of the nonprofit work force
Board emphasis shifts to strategy, sustainability, advocacy
 Big picture outlook
[email protected]
501c³ – Taking Nonprofits to the Third Power
31
Nonprofit Resources
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
32
Duty of Care
“Board members must act as an ordinarily prudent person would act under similar circumstances.”
Translation:  Board members must come to meetings prepared.
 The Board speaks with one voice and respect the wishes of the majority.
9/28/2016
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501c³ – Taking Nonprofits to the Third Power
33
Duty of Loyalty
Board members must put the interests of the organization above their own.
Translation:
 The Board has a conflict of interest policy and consistently enforces it.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
34
Duty of Honesty
Board members must act in accordance with the organization’s stated mission and applicable laws.
Translation:
 The Board follows the bylaws, ensures timely and accurate filing to regulatory bodies, reviews the Form 990 before it is filed, etc.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
35
Sarbanes‐Oxley

Adopted in 2002 for publicly‐held corporations.
 Financial Transparency – 990 is a public document  Recommend – post on organization website as well as GuideStar, Charity Navigator.
 Conflict of Interest ‐ Relationships
 Many recommendations adopted in newly revised IRS Form 990.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
36
IRS 990

First section of 990 is all about Governance

Perceptions and Implications of Disclosures.

Board members and their contact information listed on website!

The Board should review and discuss in detail. www.irs.gov
.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
37
Policy “Musts”

Conflict of Interest Policy

Whistleblower Policy

Document Destruction Policy

Director’s & Officers Insurance 9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
38
What Will You Commit To Do?

Fiduciary: 
Review 990

Come to meetings prepared

Policy Musts

Conflict of Interest

Board on website.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
39
Responsibility of
Board Management
Section 3
Do You Know Your Role?
Scenario 3 –
o
o
o
You’re at dinner and notice that another board member is also there and obviously been drinking.
They are loudly talking about your organization and including some sensitive information.
What do you do?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
41
How long did it take before you felt confident in your role as a Board Member?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
42
Board Orientation 









Required for New Board Members
Governance and fiduciary duties.
Budget and financials (Form 990).
Strategic plan.
Board Member job descriptions Commitment letter.
Mission, vision and core values.
Policies and procedures.
Conflict of interest.
Connections! Networks!
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
43
One Board
Member
carpenter's
church
All Board Members
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
44
Hold Effective Board Meetings



Monthly, lasting no more than 90 minutes
Board Chair leads meetings
Full board responsible for board documents







9/28/2016
Includes: agenda, minutes, financials, reports
Use Consent agenda
Delegate committee work to committees.
Decide how/when to use Robert’s Rules
Stick to agenda.
Begin/end on time.
Include Executive Session at every meeting.
[email protected]
501c³ – Taking Nonprofits to the Third Power
45
Minute Minutes





Attendance
Motions/Seconds
Votes on Action Items
Secretary responsible for distribution and archiving
Recording Options:
 Take turns
 Last one in attendance is “it”
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
46
Organizational Dashboard
Steering Wheel
Speedometer
Gas Gauge
Oil Light
Air Conditioning
Music
9/28/2016
Staff and Board
Programs
Funding
Risk Management
Volunteers
Infrastructure
[email protected]
501c³ – Taking Nonprofits to the Third Power
47
Annual Planning Retreat





Review mission, vision, core values every 3‐5 years.
Assess current strategic plan.
Create a long term vision and 12 month plan of work.
Focus forward, build consensus.
Limit 3‐5 S.M.A.R.T. Goals with corresponding strategies


Strategic, Measureable, Accountable, Realistic, Time‐Bound
Team building and fun!
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
48
Establish Effective Committees






Develop committee action plan to achieve Board Strategic Plan.
Report to Board via Committee Chair
Provide progress reports at every Board meeting.
Some committees have sunsets.
Members may include individuals outside Board.
 Standing: Finance, Nominating,  Ad Hoc: Marketing, Special Event
Executive Committee
https://nonprofitquarterly.org/governancevoice/12681‐how‐to‐revitalize‐your‐board‐destroy‐your‐executive‐
committee.html?gclid=CjwKEAiA28ilBRCy5cXrgtfTxTISJABgX7E2ZhUU6qmo_yXpgPOt‐L3dTYfFQJFI0PFRXnBIboFULhoCh1_w_wcB
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
49
Board Tenure 



Term Limits. Term Limits. Term Limits.

New blood, ideas, connections, $$$’s

Remove deadwood

Hold board members accountable
Average tenure is 3 years, renewable once.
Millenials changing term limits
Retire to Advisory or Emeritus Status.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
50
Advisory Board
Friends of ______?

Members can include: 

Former Board Members, community VIP’s, major donors, individuals who cannot serve on Board due to Bylaws.
Keep engaged and committed.

Job description of responsibilities and expectations.

Hold annual meeting, send regular communications

Assign a liaison from Board.

Do not refer to as Advisory or Board!
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
51
Board Commitment Letter


Restate individual board member job description.
Includes all board members’ commitments:




Financial contribution, advocacy work, committee, event participation, volunteering, meeting attendance, escape clause (below) and all other expectations.
I agree that if, at any time, I am unable to fulfill the commitments as a member of the board of directors, I will give notice of my resignation to the Board Chair.
Sign annually.
Board Chair responsible for distribution and regular evaluation
9/28/2016
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501c³ – Taking Nonprofits to the Third Power
52
Deal with Unproductive Board Members




You get what you accept and what you reward!
Term limits critical.
Maintain commitment letters.
Keep performance expectations high.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
53
Ultimate Board Member



Jimmy & Rosalynn 
Carter

Habitat for Humanity
9/28/2016
Served one term on the Board
Raised funds as a board member
Recruited potential new board members
Advocated for the organization
Remained committed to the organization following their board term
[email protected]
501c³ – Taking Nonprofits to the Third Power
54
What Will You Commit To Do?

Management: 







9/28/2016
Board Orientation
Connections/Networks
Strategic Planning
Committee Chair
Term Limits
Friends of ____
Commitment Letter
Develop/Maintain Dashboard
[email protected]
501c³ – Taking Nonprofits to the Third Power
55
Break!
Chocolate Personality Test
All American, loves baseball, mom, apple pie. Dependable
cheerleaders. Great fund raiser, level headed, high energy, playful,
great PR people. Kind, thoughtful, head of the cheer fund, remembers
all birthdays.
Messy but organized, creative, optimistic, perky, visual learners and
teachers. Sees the cup as ½ full always, a little offbeat and crazy,
entrepreneurial, friendly. Doesn’t mind chaos and able to multi-task.
Can fly by the seat of pants and improvise. Sometimes needs a
deadline to get the task done.
Likes to be an expert. Will gather data and then play devil’s advocate.
Likes to be heard at meetings. May drive other people crazy. Able to
see all the possibilities and takes time to make a decision. Logical
follows steps and directions. Analytical.
Patience, insightful, individualist, reflective, curious. Enjoys solving
problems. Likes a challenge that can be solved by sitting alone and
thinking about it. Likes to see a project through from beginning to
end. Likes a plan. Works well with difficult people and children.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
57
Responsibility of
Board Recruitment
Section 4
Nominating Committee





9/28/2016
Responsible for managing new board member process, not recruitment!
Year‐round standing committee.
Usually chaired by president‐elect, past president, or seasoned member.
Executive Director serves as pro‐bono (non‐voting) member.
Members include at‐large board members.
[email protected]
501c³ – Taking Nonprofits to the Third Power
59
Tools for Nominating Committee

Based on Board Matrix identify:

What skills are needed?

Diversity of members. Does board reflect community?

Who may have current relationship with organization.

Consider a former client as a pro bono board member.

Use LinkedIn Board Connect! https://nonprofits.linkedin.com
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
60
Tools for Nominating Committee

Board Recruitment Packet:

Ensure a consistent Message about expectations, roles and responsibilities

Identify time requirements in detail.

Articulate all areas of commitment including: skills, financial contributions, advocacy work, meeting requirements, committees, events, etc.

Other: Application, board member, annual report, financials, fact sheet, organizations history and accomplishments, etc.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
61
Board Recruitment



All board members identify potential new members based on Board Matrix.
Use same techniques as recruitment for staff, volunteer positions.
Year‐round, Nominating Committee processes potential board members including:

Application completion

Interview

Reference and criminal background checks.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
62
Board “Bless and Release”

Misrepresenting organization; saying negative things about executive director, staff, or board members to those outside organization.

Doing media/public relations without knowledge of organization.

Misunderstanding or taking no part in fundraising role of board.

Being difficult to work with, due to overall negativity or not willing to help.

Not attending board meetings, creating a knowledge vacuum so decisions cannot be made.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
63
Hide and Seek
Where can you look for new Board Members?
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
64
What Will You Commit To Do?

Board Recruitment: 
Serve on Nominating Committee

Develop/Maintain Board Matrix

Develop/Maintain Board Recruitment Packet

Interview potential board members

Check references

Identify potential board members
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
65
Responsibility of
Financial Sustainability
and Advocacy
Section 5
Where Donors Give










Charitable giving increased 3.5% Giving by individuals increased by 3.9 %
Giving by bequests declined by 7.0%
Giving by foundations increased 4.4%
Giving by corporations increased 12.2%
Giving to religion is largest 32%
Giving to education and human services 13%
Giving to foundations 10%
Giving to health organizations 9%
Giving to arts and cultural organizations 5%
http://store.givingusareports.org
9/28/2016
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501c³ – Taking Nonprofits to the Third Power
67
Percentage of Nonprofit Budget

Giving by Individuals ‐ 72%

Giving by Foundations – 15%

Giving by Bequests – 7%

Giving by Corporations – 6%
http://store.givingusareports.org
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
68
Most Effective Fundrai$ing
Greatest Success Rate

9/28/2016
Individual Contributions
Amount of Time/Effort

Special Events

Corporate donations

Bequests

Grants

Grants

Bequests

Corporate donations


Special Events
Individual Contributions
[email protected]
501c³ – Taking Nonprofits to the Third Power
69
Special Event Fundrai$ers
Which of these is the real purpose of a special event?
1) To make as much money as possible?
2) To use the event as a way to market our mission to cultivate potential new donors and if we make a profit, all the better?
9/28/2016
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501c³ – Taking Nonprofits to the Third Power
70
Special Event Fundrai$ers
What is the most critical element to ensure a successful special event fundraiser?
1) Marketing the event throughout the community
2) Marketing the event throughout the community coupled with 100% support by the board to promote, solicit, volunteer and attend the event.
9/28/2016
[email protected]
501c³ – Taking Nonprofits to the Third Power
71
Board Members as Fundraisers
Set expectations.

Include role as fundraiser in board recruitment
‐
Communicate how fundraising relates to the mission

Understand you play an integral part in development
‐

Train board members
‐ Seasoned board members teach fundraising to new board members at retreat

Buddy up
‐ Pair the least comfortable with those most comfortable to help them out
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Board Members as Fundraisers
Fundraising is the board’s fiscal responsibility

‐ It’s part of the gig
Fundraising is a skill that can be learned
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‐ You just need training
Don’t neglect introverts
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‐ Quieter board members can be the best fundraisers
You don’t need “affluent connections.”
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‐
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You just need to be good at connecting with people
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Board Members as Fundraisers

Read
‐ Marshall Howard’s Let’s Have Lunch Together, Penelope Burk’sDonor‐Centered Fundraising, and David Sternberg’s Fearless Fundraising for Nonprofit Boards.

One fundraiser isn’t enough
‐ You’re at a disadvantage if board members don’t join in.
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There’s more to fundraising than the “ask.”
‐ Board members play a part in donor identification, cultivating potential donors, stewarding existing donors 
Be intentional about meeting and calling people.
‐ People appreciate being genuine and upfront with your intentions
9/28/2016
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Board Members as Fundraisers

Realize alternatives to fundraising if board does not fundraise.
‐ Reduce services?
‐ Close? ‐ Change the mission?
http://www.nonprofithub.org/fundraising/transform‐your‐board‐of‐directors‐into‐fundraising‐champions/
9/28/2016
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Welcome to
carpenter's church
Theater
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“Friend”raising Board Recap
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Step 1 ‐ Board member introduce “friends” to organization.
Step 2 ‐ Follows meeting with phone call or note. Step 3 ‐ With permission, “Friend” is added to organization communications.
Step 4 ‐ “Friend” is invited to see programs in action.
Step 5 ‐ Board member follows tour with phone call or note.
Step 6 ‐ “Friend” is invited to Call to Action event.
http://www.benevon.com/index.htm
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Strategize for the New Demographics

Silent Generation – Involvement because it makes you a better person
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Baby Boomers – Involvement to see specific impact

Millennial’s (soon to become new participants!) –
Involvement to be a part of something, to do something or be with someone. Web 2.0!
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Web 2.0


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Web 2.0 – Created by individuals themselves.
Positive + They not only donate, but advocate, volunteer, initiate programs and activities.
Negative – Short timer, desire full responsibility, know everything. 9/28/2016
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Talk Story
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Identify four or five supporter types/profiles
Have board members call donors and ask:

What is it that we do well?
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How did you get engaged in our cause?
Two things emerge:
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Rebuilds the connection because it reminds them why they care about your organization
Identifies what programs people want
Use social networks and social media to reach new people!
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One Board
Member
carpenter's
church
All Board Members
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Advocate Everyday
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Once a week tell someone about organization.
Be the “go to” person for information on organization.
Effective board members serve on one board at time.
Loyalty
 Faith Based Organization
 School
 carpenter's church
9/28/2016
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What Will You Commit To Do?

Financial Sustainability/Advocacy: 
Individual donations

Support Special Events
Fundraise
Identify Corporate Sponsors
Friendraising
Advocate




9/28/2016
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Responsibility of
Evaluation
Section 6
Don’t wait. Plan now. 67% of the nonprofit executives surveyed anticipate leaving their positions within 5 years. Only 30% of boards see this coming.
‐ Daring to Lead Survey
Some 40% of new CEOs are fired, or “retired,” within their first 18 months, and 64% of them never make it to their fourth anniversary on the job. ‐ Nat Stoddard and Claire Wyckoff, Pick a CEO Who Truly Fits the Company,
Forbes.com, Apr. 9, 2009
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Welcoming a New Leader

Do not leave board.

Send announcements to everyone, not just press.

List VIP’s new ED should meet, initiate these meetings

Give positive messages about working together. 
Take new ED to lunch, and listen. 
Look for opportunities to praise new ED publicly.

Pay for coach/training.

Establish and monitor performance benchmarks.

Designate “safe person”, preferably a past board member.
http://www.blueavocado.org/content/psst‐want‐your‐new‐executive‐director‐succeed
9/28/2016
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Executive Director Evaluation

At least annually, prefer every 6 months or even quarterly

Assign board committee to manage evaluation process.
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ED reviews process and instrument(s) prior to start. 
Collect evaluations from all board members rather than compile "average," report actual responses.

Allow ED to respond (in person or in writing) to full board; response is placed in the executive's personnel file.
9/28/2016
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5 Keys To Succession Planning
Prior to Executive Search
1.
Understand the job of the nonprofit chief executive
2.
Develop an emergency leadership transition plan
3.
Define mutual expectations of the chief executive and the Board
4.
Design and implement evaluation process for chief executive
5.
Develop a process for board self‐assessment
9/28/2016
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6 Tasks Prior to the Executive Search
1.
Define the core leadership and management competencies
2.
Create a Chief Executive profile
3.
Will you use an interim executive?
4.
Develop a communications plan
5.
Define the role of the outgoing executive in the succession planning process
6.
Avoid the pitfalls
9/28/2016
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Tools for Board Self‐Assessments

51% of boards use a formal, written evaluation

81% use written board member job descriptions
Leading with Intent
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Is Your Board Ready for Self‐Assessments? (Maine Association of Nonprofits)
Board Self‐Assessment Questionnaire (The New Hampshire Center for Nonprofits)
Nonprofit Board Self‐Assessment Tool (McKinsey & Company)
Sample self‐appraisals (Council of Financial Accountability)
Individual Board Member Self Evaluation useful to identify areas for improvement, issues for discussion, and topics for further board education.
Board self‐assessment tool (BoardSource)
9/28/2016
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Board Evaluation!
Board Evaluation
1. The roles of the Board and the Executive Director are defined and respected, with the Executive Director delegated as the manager of the organization's operations and the board focused on strategy and planning.
2. The Executive Director is recruited, selected, and employed by the Board of Directors. The board provides clearly written expectations and qualifications for the position, as well as reasonable compensation.
3. The Board of Directors acts a governing trustees of the organization on behalf of the community and contributors, while carrying out the organization's mission and goals. 9/28/2016
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Board Evaluation
4. The board's nominating process ensures that the board remains appropriately diverse with respect to gender, ethnicity, culture, economic status, disabilities, and skills and/or expertise.
5. The board members receive regular training and information about their responsibilities.
6. New board members are oriented to the organization, including the organization's mission, bylaws, policies, and programs, as well as their roles and responsibilities as board members.
7. Board organization is documented with a description of the board and committee responsibilities.
9/28/2016
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Board Evaluation
8. Each board member has a copy of the board operations manual.
9. If the organization has any related party transactions between board members or their family, they are disclosed to the board of directors.
10. The organization has at least the minimum number of members on the Board of Directors as required by their bylaws or state statute.
11. The organization’s bylaws have been reviewed by legal counsel and if necessary conform to state statute.
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Board Evaluation
12. The bylaws should include: 





a) how and when notices for board meetings are made; b) how members are elected/appointed by the board; c) what the terms of office are for officers/members; d) how board members are rotated; e) how ineffective board members are removed from the board; f) a stated number of board members to make up a quorum which is required for all policy decisions.
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Board Evaluation
13. The board has a process for handling urgent matters between meetings.
14. The board of directors reviews the bylaws.
15. Board members serve without payment unless the agency has a policy identifying reimbursable out‐of‐pocket expenses.
16. The organization maintains a conflict‐of‐interest policy and all board members and executive staff review and/or sign to acknowledge and comply with the policy.
17. The board has an annual calendar of meetings. The board also has an attendance policy such that a quorum of the organization's board meets at least quarterly.
9/28/2016
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Board Evaluation
18. Meetings have written agendas and materials relating to significant decisions are given to the board in advance of the meeting.
19. The board has a written policy prohibiting employees and members of employees' immediate families from serving as board chair or treasurer.
9/28/2016
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360 Organizational Assessment
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Self‐assessments are often the first step in an organization’s journey towards effective outcomes. Goal is to collect data that helps evaluate if organization is making progress advancing its mission.
Nonprofit Organization Self‐Assessment tools (Nonprofit Association of Oregon)
Organizational self‐assessment tool (Innovation Network, Point K)
Board member self‐assessments (National Council of Nonprofits)
Organizational Capacity Assessment Tool (Marguerite Casey)
Self‐Assessment Checklist (Free Management Library)
Organizational Assessment and Planning Tool (Michigan Nonprofit Association)
Infrastructure Checklist (Nonprofit Association of the Midlands)
9/28/2016
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What Will You Commit To Do?

Evaluation: 




9/28/2016
Welcome New Leaders
Executive Director Evaluation
Succession Plan
Board Evaluation
360 Organizational Assessment
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Authors: Leslie Crutchfield and
Heather McLeod Grant
1.
2.
3.
4.
5.
6.
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Advocate an Serve
Make Markets Work
Inspire Evangelists
Nurture Nonprofit Networks
Master Art of Adaptation
Share Leadership
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Envisioning Exercise
Section 7
Envisioning Exercise
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
Why are you on the board of carpenter's church?
What does carpenter's church mean to you personally?
What do you wish to gain personally from your time as a board member?
How can you best serve carpenter's church as a Board Member?
What are you willing to do to see carpenter's church succeed?
Where do you see carpenter's church as an organization in 2025?
9/28/2016
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Focus Conversation
For remaining time, questions will appear. Take turns answering spontaneously, no one will call on you.
Questions will change after several responses.
Every one MUST answer last question!


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

What are some of the items we covered today?
What was your “Aha!” moment?
How do you feel regarding the information presented?
What difference will this make?
What one thing will you do as a result of what we have done today?
9/28/2016
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Nonprofit
Resources
Favorite Nonprofit Websites

GrantStation –
 TechSoup – www.techsoup.org
 Nonprofit Risk Management Center –
www.grantstation.com
 Chronicle of Philanthropy ‐
www.philanthropy.com

Nonprofit Quarterly ‐
www.nonprofitquarterly.org

Blue Avocado –
www.blueavocado.org

BoardSource ‐
www.boardsource.org

www.nonprofitrisk.org
 Independent Sector –
www.independentsector.org
 C‐Forward – www.cforward.org
 Texas C‐Bar – www.texascbar.org
Idealware –
www.idealware.org
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








Volunteer Management Services
LeadershipPlenty Modules
Nonprofit Management Courses
Strategic Planning
Succession Planning
Change Management
Advocacy
Understanding the Nonprofit Sector
Social Media & Marketing Courses
Our services start with a free conversation to access your situation; together we then determine what elements of support you may need and provide you with an individualized proposal based on those needs and budget. Through our skilled diagnosis, we ensure that you receive the level of support you need at a price your agency can afford. Our mission is to Unleash the Power of the Nonprofit Community by generating Confidence, Competence and Collaborations!
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









Programs for Conferences and Resource Centers
Customized Programs for Individual Nonprofits
Strategic Initiative Retreats for Nonprofit Boards
Nonprofit Interventions for Staff, Boards and Volunteers
Certified ToPs (Technology of Participation) Facilitations
Qualified LeadershipPlenty Courses
Constant Contact ‐ Authorized Local Expert
Certified CCAT (Core Capacity Assessment Tool) Evaluations
Association Management Consulting Targeting Membership Growth Dynamics
Volunteer Program Assessments
Free Nonprofit Career Counseling for Universities as well as Individuals
Free Nonprofit Referrals and Resources
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Free Advice and Counsel
Mary Beth Harrington, CVA
501c³ ‐ Taking Nonprofits to the Third Power
[email protected]
www.mbharrington501c3.com
972‐839‐9960