Oregon Nonprofit Leaders Conference

Transcription

1 SOLID GROUND CONSULTING April 2014 Oregon Nonprofit Leaders Conference BOARD DEVELOPMENT SUSTAINABLE LEADERSHIP 516 SE Morrison Street #400, Portland, Oregon Marc Smiley

2 At Solid Ground, we build the capacity and confidence of leaders to make a difference in their communities. 516 SE Morrison Street #400 Portland, Oregon

3 TRAINING RESOURCES Board Development Building a Leadership Structure Solid Ground Consulting 1

4 Oregon Nonprofit Leaders Conference Shared Roles of Leadership 2 Solid Ground Consulting

5 TRAINING RESOURCES Board Development Governance vs. Management The job of the board of directors for a nonprofit organization is simple: it is responsible for everything. This includes both governance and management of the organization. Even if it delegates certain responsibilities to the staff or other professionals, it is responsible for ensuring that the resources of the organization are being effectively applied to meet its mission. Many nonprofits have the luxury to hire staff to help fulfill parts of these responsibilities. Depending on the size of the staff, the board will delegate key functions that are best suited to the full-time attention provided by professionals. It will retain the functions that are reserved for its fundamental fiduciary responsibility, and for which it is best suited. These functions can be divided between the governing functions reserved for the board, and the management functions often delegated to staff. The governing functions are those that provide the essential direction, resources and structure needed to meet specific needs in the community. These include: Strategic Direction setting a direction for the organization that reflects community needs. Financial Accountability managing financial resources that ensure honesty and cost-effectiveness. Leadership Development developing the human resources that lead the organization today and in the future. Resource Development developing financial resources that support program activities. The management functions are those that provide the program activities and support to accomplish the goals of the organization. These usually include: Program Planning and Implementation taking the strategic direction to the next level of detail and putting it into action. Administration ensuring the effective management of the details behind programs. For smaller organizations (with less than four paid staff), the board usually delegates only some of the management functions to staff. For larger organizations (with more than four staff members), the board usually delegates nearly all of the management functions. The board should never delegate the governing functions to staff as these represent its core responsibilities to its constituencies and to the general public. Solid Ground Consulting 3

6 Oregon Nonprofit Leaders Conference Models of Nonprofit Boards program implementation program management policy leadership policy oversight fundraising honorary 4 Solid Ground Consulting

7 TRAINING RESOURCES Board Development Policy Making Policies govern the direction and operations of an organization. They provide a framework for decision making within which the organization can do its work. But while the board does set policy, it is not responsible for setting ALL policies. The board of director s role regarding policy is to: Establish and/or approve the broadest and most strategic policies Ensure that policy is being developed and implemented Review policy periodically The board reviews policies, when necessary, in order to reflect the changing needs of a community. It also ensures the organization s compliance with legal requirements. Some policy-setting responsibility, however, should be passed through to the staff. In order to understand which policies the board should address directly and which policies the board should delegate, distinction must be made among various kinds of policies. The broadest policies are those that address the governing functions of the organization. These governing policies include issues about strategic direction and leadership development, and can be found within the strategic plans and bylaws. The board is directly responsible for the formulation of these policies. The central governing policy of an agency is the mission statement. The board is responsible to see that the mission is clearly defined. This will ensure that potential clients and customers will understand the organization s purpose and goals, that staff will know how to direct their efforts, and that investors will know what they are supporting. The mission statement is defined further through goals and objectives. These are established thorough a cooperative effort of the board, with input by the staff and volunteers. Solid Ground Consulting 5

8 Oregon Nonprofit Leaders Conference Policy Making (continued) The second policy level is executive policy, such as financial policies, endowment policies and personnel policies. These policies are usually established by committees or staff, and approved by the board. Unlike the broadest governing policies that are reviewed and revised on a more infrequent basis, executive policies tend to be part of the regular deliberation of the board. A third level of policy is administrative policy. This includes policies about managing the workplace and communicating among staff. These policies are developed and administered entirely by the staff. The board does not establish these policies, but is aware of them, assuring they conform to legal requirements and to the governing and executive policies. It is through the regular approval and review of these policies (not micro-management of individual activities) that a board maintains contact with the day-to-day operations of the organization and fulfills its accountability to the organization s constituencies. 6 Solid Ground Consulting

9 TRAINING RESOURCES Board Development Essential Board Roles Determine overall direction Values, Vision, Mission, Goals, Plans Establish governance policies Adopt a budget Set reporting guidelines to ensure accountability Progress toward goals Compliance with policy Compliance with budget Employ and evaluate the executive director Ensure that the organization has adequate resources Tell the organization s story in the community Develop and perpetuate the board Be available to offer professional perspective of individual members as needed Solid Ground Consulting 7

10 Oregon Nonprofit Leaders Conference Legal Obligations of Board Members The Reasonably Prudent Person Test and The Principle of Good Faith The Reasonably Prudent Person avoids: Mismanagement Failure to follow fundamental management principles, e.g. failure to ensure that planning occurs; failure to review reports for problems. Non-management Failure to use existing opportunities for good management, e.g. failure to use available accounting control systems to ensure proper management of funds. Self-dealing Involvement in activities or voting on decisions in which there exists the potential for personal gain. The Principle of Good Faith states that board members should: Attend all board and committee meetings regularly. Have a thorough knowledge of the organization s charter and by-laws. Heed corporate affairs and keep informed of general organizational activities. Ensure that minimum legal/technical requirements are met. Record personal conduct and register dissents officially. Avoid the semblance of self-dealing or conflict of interest. Make no financial profit from association with organization. 8 Solid Ground Consulting

11 TRAINING RESOURCES Board Development Overview of Board Duties 1. The board engages in strategic planning. 2. The board determines the organization s mission and purpose. 3. The board approves and monitors the organization s programs and services. 4. The board ensures effective financial management. 5. The board ensures sound risk management policies. 6. The board selects and orients new board members. 7. The board organizes itself so that it operates efficiently. 8. The board selects and supports the executive director and reviews his/her performance. 9. The board understands the relationship between board and staff. 10. The board raises money. 11. The board enhances the organization s public image. Solid Ground Consulting 9

12 Oregon Nonprofit Leaders Conference Board Duties and Staff Support Responsibility 1: The board engages in strategic planning Board Activities The board focuses on the longrange strategic issues confronting the organization. The board may choose to create a standing strategic planning committee as well as temporary task forces or ad hoc committees around specific strategic issues. The strategic planning committee works with the executive director, and often a consultant, to plan retreats. Each board member understands the organization s strategic plan or vision. Each board member participates in a periodic strategic planning retreat, with particular focus on the organization s vision, mission, goals, and objectives. The full board approves the final strategic plan, including financial projections for the period of the plan. Staff Activities The executive director schedules periodic strategic planning retreats. The executive director ensures that board members are familiar with the existing strategic plan. He/she also provides board members periodically with relevant information about the external environment in which the organization operates. The staff collects and formats all information needed for planning in an understandable, accurate manner. The staff writes all or most of the plan, starting from the boardapproved mission and goals, and submits it to the Strategic Planning Committee for review. 10 Solid Ground Consulting

13 TRAINING RESOURCES Board Development Board Duties and Staff Support Responsibility 2: The board determines the organization's mission and purpose Board Activities Each board member knows and understands the mission. The entire board reviews the mission in the context of strategic planning at least once every three years. Board members specify the information they will need for an adequate review of the mission and purpose. The entire board attends planning retreat(s); reads appropriate materials; participates in discussion. The board revises the mission if necessary. The mission should be clear, concise, and understood by board and staff. Staff Activities The executive director ensures that the organization s mission statement is provided to every board member when he/she is recruited and is explained thoroughly during new board member orientation and is included in the board manual. The executive director schedules planning and mission review at least once every three years. The staff gathers information needed to review the mission and purpose. The executive director ensures that revised mission is circulated to all. Solid Ground Consulting 11

14 Oregon Nonprofit Leaders Conference Board Duties and Staff Support Responsibility 3: The board approves and monitors the organization's programs and services Board Activities Each board member understands the organization s current programs and services. The board specifies what information it needs on an ongoing basis to monitor the quality and impact of programs and services, e.g., service statistics, outcomes, etc. During planning (#1), the board ensures that the programs and services are consistent with the mission. The board reviews and approves new programs. During planning and/or budgeting, the board reviews existing programs and evaluates their effectiveness at achieving the outcomes desired within the plan. Staff Activities The executive director ensures that new board member orientation allows board members to understand existing programs and services. He/she schedules educational presentations during board meetings. Staff collects, formats, and provides program-related information in an easy-to-understand and timely manner. Staff develops new program proposals for review by the board. Proposals contain both program and financial information and present options when possible. Grant applications that contain new program proposals should be reviewed by the board prior to submission to the prospective funder. 12 Solid Ground Consulting

15 TRAINING RESOURCES Board Development Board Duties and Staff Support Responsibility 4: The board ensures effective financial management Board Activities Generally, the board elects a treasurer who also serves as Chair of the Finance Committee. The board chair appoints the other members of that Committee. The full board understands the charge of the Finance Committee. The Finance Committee reports to the full board. The full board approves the annual operating budget on the recommendation of the Finance Committee. The full board receives periodic (no less than quarterly) financial reports following review by the Finance Committee. Discrepancies are explained by the Treasurer or the Chief Financial Officer The full board approves the annual selection of an auditor on the recommendation of the Finance Committee. The audit report and management letter are presented to the full board by the auditor. The Finance Committee makes policy and procedure recommendations to the full board. Where needed, the board creates an Investment Committee to oversee the investment of the organization s assets. The board chair appoints the committee chair and members. The committee reports periodically to the full board. The committee that recruits new board members seeks members with financial skills. Staff Activities The executive director ensures that the new member orientation educates members about the organization s financial status and strategies. The staff prepares the annual budget and presents it to the Finance Committee for discussion. The staff prepares financial reports that are understandable, accurate, and timely. The staff explains and provides plans to remedy variances in the operating budget. The staff provides a plan for responding to any recommendations in the audit management letter. Solid Ground Consulting 13

16 Oregon Nonprofit Leaders Conference Board Duties and Staff Support Responsibility 5: The board ensures sound risk management policies Board Activities The board assigns risk management to a committee, generally the Finance Committee. The Finance Committee collects information about probable risks, reviews existing policies and risk abatement strategies, and recommends appropriate policies to the full board. The Finance Committee periodically reviews all insurance carried by the organization. Staff Activities Staff maintains insurance policies, pays premiums. The executive director schedules review of insurance coverage and makes all needed information available to the committee. 14 Solid Ground Consulting

17 TRAINING RESOURCES Board Development Board Duties and Staff Support Responsibility 6: The board selects and supports new board members Board Activities The board creates a Board Development Committee to recruit and nominate new board members, re-nominate existing board members, and nominate officers. The board chair appoints the chair and members of the Board Development Committee. The Board Development Committee identifies needed board skills and attributes and searches for individuals who have an interest in the organization and meet the criteria. The Committee works with the entire board to cultivate and recruit those individuals. The Board Development Committee reviews and recommends a new member orientation process to the full board. The Board Development Committee identifies training needs for the organization and facilitates the board s access to training opportunities. The Board Development Committee coordinates a board evaluation process, and works with the President to follow-through on any issues that arise for individual board members. The Board Development Committee coordinates recognition activities for the board and takes steps to help ensure that all board members receive appropriate recognition for their contributions. The Board Development Committee may recommend that nonperforming board members be given an opportunity to participate in the organization in a role other than Board member. The Board Development Committee recommends policies (often from the bylaws) on board size and composition, length of board service and other matters related to board governance. Staff Activities The executive director or a designee maintains the records on board service and publishes a board roster with appropriate information. The E.D. also: - Maintains records on prospective board members - Staffs the Board DevelopmentCommittee - Coordinates the new board member orientation process Solid Ground Consulting 15

18 Oregon Nonprofit Leaders Conference Board Duties and Staff Support Responsibility 7: The board organizes itself so that it operates efficiently Board Activities The board assigns to a committee, generally the Board Development Committee, the responsibility for overseeing and evaluating board operations. The Board Development Committee annually conducts a board self-evaluation and makes recommendations for change to the full board. The Board Development Committee periodically reviews the bylaws. The board president and committee chairs ensure that their method of planning and conducting meetings results in efficient and effective meetings with appropriate participation by board or committee members and staff. The board president appoints committee chairs and members in consultation with the executive director. The board president considers leadership training as he/ she appoints committee chairs. Committee chairs understand their charges and develop annual goals and work plans. The Board Development Committee seeks individuals with leadership potential as it recruits new board members. Staff Activities The executive director assists the Board Development Committee in finding evaluation instruments. The executive director calendars the board self-evaluation process. Staff maintains the board manual and keeps it up to date. The executive director maintains the bylaws and ensures that each board member has an up-to-date copy. The executive director provides materials to the board chair and committee chairs on running an effective meeting. He/she also works with chairs on meeting agendas. The executive director recommends committee chairs and members to the board chair. The executive director ensures that each committee has appropriate staff support and access to the information needed for their deliberations. 16 Solid Ground Consulting

19 TRAINING RESOURCES Board Development Board Duties and Staff Support Responsibility 8: The board selects and supports the executive director and reviews his/her performance Board Activities The board chair appoints the appropriate committees (search committee; evaluation committee, personnel committee) and ensures that their charges are clearly understood. The committees report their recommendations to the full board. In a search process, the full board approves the search process, the job description, the salary range, meets the final candidate(s) and votes to hire. The board chair or a designee makes the job offer and negotiates salary and employment conditions. In an evaluation process, the full board approves the evaluation process and salary adjustment range and receives a summary report of the evaluation outcomes. During evaluation, the committee reviews the executive director job description and makes recommendations for change if necessary. The board chair meets frequently with the executive director to provide feedback, to help set priorities, and to offer advice. Board members are responsive to the executive director s requests for advice and assistance and support the executive director in public. Board members take any concerns about the executive director to the board chair. Staff Activities The executive director ensures that the board chair is familiar with the evaluation process and has access to any relevant files. The executive director schedules his/ her own evaluation. The executive director reviews his/ her own job description and makes recommendations for change. Solid Ground Consulting 17

20 Oregon Nonprofit Leaders Conference Board Duties and Staff Support Responsibility 9: The board understands the relationship between board and staff Board Activities Each board member understands that unless otherwise specified, his/ her point of contact with the staff is through the executive director. The board reviews and approves personnel policies including compensation and benefits policy, professional development, and grievances. The board may create a temporary ad hoc committee to develop and/or periodically review these policies. The board holds the executive director accountable for the performance and behavior of the staff as a part of the executive director s annual evaluation. Staff Activities The staff understands that unless otherwise specified, their point of contact with the board is through the executive director. The executive director hires, fires, and evaluates all staff. Staff adheres to the personnel policies. 18 Solid Ground Consulting

21 TRAINING RESOURCES Board Development Board Duties and Staff Support Responsibility 10: The board raises money Board Activities Each board member understands the role of contributed funds in the organization s finances as well as the organization s case statement and fundraising strategies. Each board member makes an annual personal financial contribution. The board chair or chair of the major giving committee generally solicits each board member. Each board member identifies an area where he/she can make a contribution to fundraising. The board job description contains a clear statement about the expectation for personal giving and participation in fundraising. The committee that recruits new board members seeks new board members who can be helpful in the fundraising process. The board chair appoints an individual or a committee(s) to oversee the board s activities in fundraising. The board ensures that the fundraising program has adequate resources in the annual budget. Staff Activities The executive director ensures that prospective board members are informed about the fundraising expectations. The executive director ensures that the new board member orientation and the board manual educate board members about the fundraising case statement and strategies. Staff works individually with each board member to identify the area in which the board member will participate in fundraising. Staff works with the board chair to identify an appropriate gift level for each board member and makes certain that board members are appropriately thanked for their gifts. Staff ensures that board members receive adequate recognition for their participation in fundraising. Staff provides all needed information to board members working on fundraising. Solid Ground Consulting 19

22 Oregon Nonprofit Leaders Conference Board Duties and Staff Support Responsibility 11: The board enhances the organization's public image Board Activities Each board member proactively promotes the organization with his/ her circle of contacts. Board members respond to requests from staff to make presentations or help the organization make needed contacts. The board ensures that a marketing communications plan exists, has adequate resources, and is being implemented. The board identifies the official spokesperson for the organization. Staff Activities The staff provides board members with good information (talking points, etc.) to use in promoting the organization. The executive director determines each board member s circle of contacts and ensures that they are appropriately used. The staff prepares the marketing communications plan. 20 Solid Ground Consulting

23 TRAINING RESOURCES Board Development Conflict of Interest A critical policy for all nonprofit organizations is a Conflict of Interest Policy, which defines the situations in which a conflict of interest must be noted and addressed, and the process in which the organization resolves the conflict of interest. Resolving conflicts of interest are important to ensure that board members are consistent with their duties of loyalty and care owed to the organization. In the development of such a policy, it is important to make the distinction between a certain conflict of interest and the perception of a conflict of interest. While organizations must address the real conflicts, they must also manage the perceived conflicts to ensure their organization's credibility and integrity remain strong. The following specific areas are helpful in the development of a conflict policy. 1. Disclosure of direct or indirect financial interest. Board members must disclose the interests in which they receive a direct or indirect financial benefit from their association with the organization. The direct connections are the more obvious, but indirect connections, when a board member may benefit from an intermediary or secondary connection, are also important to disclose. In the policy, board members should be given clear direction on how to disclose their conflict, the level of participation that is appropriate in any conflict decision, and the specific details of when a board member should or should not vote. 2. Disclosure of conflicting organizational interests. Some board members serve more than one organization, or may serve a primary organization and be its representative to another coalition group. In such circumstances, board members must disclose the conflicts they have due to their loyalties to another group. These conflicts are most common in the areas of funding, including confidential information about grantmaking groups, donors, and other organizational supporters. The policy should outline the procedure for disclosure and participation in decisions. 3. Anti-nepotism for board members. One of the most troublesome aspects of conflict of interest revolves around hiring persons related to board members. If the policy states that the hiring of a person related to a board member requires a vote of the board, it should also prohibit the board member from participating in the discussion or voting. If hiring is a staff decision, the policy should require disclosure of the anticipated hiring to the board and approval by the board (absent the involvement and vote of the related board member) before the hiring occurs. Solid Ground Consulting 21

24 Oregon Nonprofit Leaders Conference Conflict of Interest (continued) 4. Compensation for hiring board members. In some circumstances, organizations will be faced with the prospect of hiring a board member or a board member s employer, family member or related party. The conflict of interest policy must outline the policy for business transactions in these circumstances, and the procedures to be followed. These transactions are often open to the greatest scrutiny, so the organization might choose to prohibit certain transactions, or set up special procedures such as a bidding process. It is very important to remember that the critical decision in this conflict of interest situation is What is the best interest of the organization? In some circumstances, the interest of the organization is best served by hiring a board member to complete a specific task. Managing the fairness of the procedure and the public perception of the decision may be the most important considerations. 5. Reimbursing board members for expenses. Separate from the decision to hire board members to fulfill specific tasks is the policy for reimbursing board members for expenses they incur on behalf of the organization. While such expenses are tax deductible, these reimbursements are totally appropriate so long as the expenses are approved in advance and managed by the person responsible for managing other organizational expenses (usually the executive director or treasurer). 6. Board members use of organizational property. The conflict of interest policy should also state that board members may not be granted special privileges for the use of the property owned or managed by the organization unless it is directly related to supporting the organization. For example, use of a facility for a personal gathering that is otherwise not available to the public is inappropriate. However, if the purpose of the gathering is to generate financial support for the organization, it may be warranted. 7. Gifts and gratuities for board members. The policy should specify the circumstances of board members accepting gifts or gratuities from individuals or corporations doing business or seeking to do business with the organization. Such gifts, if agreed upon by the board, should be restricted to gifts of nominal value, and must be disclosed immediately to the rest of the board. 8. Political activities of board members. Given the IRS restrictions on public charities participating in political activities, the organization is well-served to restrict board members from using the organization for political purposes. The conflict of interest policy can specifically prohibit the use of the nonprofit s name, facilities and property for personal or partisan electoral activities. 22 Solid Ground Consulting

25 TRAINING RESOURCES Board Development The Prudent Directors' Check List 1. Make sure your organization s mission is clear, and that the mission is followed. 2. Attend all, or nearly all, meetings of the board or committees of which you are a member. 3. Review by-laws annually to determine that they conform to law and that they incorporate all amendments which have been made through prior resolutions. 4. Make sure by-laws are followed and enforced; use consents to corporate action in lieu of meetings; all directors must sign. 5. Maintain a current membership list for your board and nonprofit organization members. 6. Request that the organization distribute important written materials in advance of board meetings at which action is to be taken. 7. Insist on advance notice to all directors of any major item of business to be acted upon at the next meeting. 9. Question all reports demonstrating inconsistencies, material errors, or other evidence of sloppy work. 10. Seek expert counsel legal, accounting, and otherwise to supplement board member understanding and experience when dealing with complex issues. 11. Thoroughly review all minutes prepared by the secretary to insure that critical matters, including resolutions and discussions of complicated and controversial topics, have been covered. 12. Adopt a written conflict of interest policy that conforms with state law. 13. Question staff to determine that the IRS is kept advised of all material and substantial changes in the organization. 14. Have the most current articles and bylaws of the organization reviewed by competent counsel to ensure that they take full advantage of state law concerning indemnification and protection of board members. 8. Read, analyze, and understand financial statements, budget proposals, and other reports; raise at least one question with respect to each financial document at any meeting called for the purpose of reviewing financial documents; expect solid, business-like answers from your organization. Solid Ground Consulting 23

26 Oregon Nonprofit Leaders Conference Lines of Authority 24 Solid Ground Consulting

27 TRAINING RESOURCES Board Development Levels of Influence Solid Ground Consulting 25

28 Oregon Nonprofit Leaders Conference Volunteer Organizational Structure board of directors board president executive committee board development finance administration resource development programs protection stewardship education 26 Solid Ground Consulting

29 TRAINING RESOURCES Board Development One Staff Organizational Structure board of directors Board of Directors board president executive committee administrator board development resource development administration finance programs protection education stewardship Solid Ground Consulting 27

30 Oregon Nonprofit Leaders Conference Small Staff Organizational Structure board of directors board president executive committee executive director board development resource development administration finance programs protection education stewardship 28 Solid Ground Consulting

31 TRAINING RESOURCES Board Development Professional Organizational Structure board of directors board president executive committee executive director finance people (personnel/ board development) Fundraising Planning Strategic Relationships resource development Grants, Events Memberships programs administration protection team education team stewardship team Solid Ground Consulting 29

32 Oregon Nonprofit Leaders Conference Board Fundraising Functions Fundraising is one of the fundamental responsibilities of the board of directors. In many cases, however, the board will delegate certain functions to staff because of the specific skills and more in-depth knowledge they possess. This does not remove the responsibility from the board, but merely shifts it from a role of implementing key programs to overseeing their implementation. Regardless of the level of delegation given to staff, the board will always have a key role in the fundraising process. This role draws on the board member's unique position as a community volunteer and leader. Below is a list of activities that board members can do as part of their ongoing fundraising responsibilities: 1. Make a cash donation to the organization that for them represents a "significant contribution." A "significant contribution" could be defined as the largest single donation to a nonprofit group for the year (with the exception of religious contributions). If a board member belongs to more than one nonprofit, the donation should at least be equal to other gifts given to other groups. 2. Commit to and participate in effective planning efforts that develop both strategic plans and specific fundraising plans. Develop the organizational structure to support planning efforts, including the development of an effective Fundraising Committee. 3. Personally make requests to funding sources (individuals, foundations and corporations), usually as part of a team supported by staff or another board member. Not every board member is suited for this task, but at least some of the board should have experience asking for money and be prepared to do so for the organization. 4. Provide support and advice to staff involved in fundraising to help them complete their duties. Remember that in this role, the board member is simply an advisor and volunteer and has no supervisory responsibilities. 5. Participate in or observe programs to develop a thorough understanding of the specific program objectives and benefits to the community. 6. Contribute names and/or lists for direct mail acquisition mailings. Sign letters on personal letterhead for solicitations to personal contacts. 7. Participate in special events and other "friendraising" activities that expand the number of prospects who can be solicited for donations. 8. Diligently oversee the organization's budget to assure that the needs of the organization are being met. Don't let the financial needs of the organization get lost in the other details of governance. 30 Solid Ground Consulting

33 TRAINING RESOURCES Board Development The Basics of Board Development Development of the board of directors is the most fundamental activity needed to build and maintain a strong nucleus for a nonprofit organization. It is a responsibility that boards should put near the top of the list of priorities. The steps in the development of the board are: Nomination and Recruitment the process of identifying the right individual to meet the needs of the organization and convincing her to become part of the organization. Orientation the steps taken to give new board members information on the background, programs, and culture of the organization. Training the regular efforts to build new skills and abilities among existing board members. Evaluation the annual task of evaluating individual board member s contributions to the board, and evaluating the board s contribution to the individual board members. Recognition the on-going process of recognizing work well-done and thanking board members for their commitment and the contributions they make to the organization. Each of these elements of board development are critical to the organization s success. For this reason, most boards will develop a specific committee responsible for these board development tasks. Often the committee is called the Nominations Committee or Board Development Committee. These issues and procedures are applicable not only to the development of board members, but also to the development of non-board committee members and other key volunteers. Solid Ground Consulting 31

34 Oregon Nonprofit Leaders Conference Roles in Board Development Board Development Committee Responsibilities Develop board member criteria Recruit potential board members Present potential members to the board Provide orientation of potential and new board members Provide training and continuing education for all members Provide regular recognition to board members Board of Directors Responsibilities Approve board member criteria Elect members Terminate members Charter Board Development Committee Ensure nomination and election of officers Ensure nomination and election of board members Ensure evaluation of board effectiveness and individual member effectiveness Rotate board jobs 32 Solid Ground Consulting

35 TRAINING RESOURCES Board Development Board Recruitment Process 1. Develop criteria for Board Profile Grid. Use the profile grid to identify the skills, background, and demographics to be represented on the board. Establish the priorities and the initial profiles to be recruited. 2. Identify recruiting prospects. Identify the people and organizations to contact as part of the recruiting process. Get the names and numbers of people to be contacted as prospects for the board. As part of this process, try to understand what each person could bring to the board. 3. Narrow the list of potential board members to top prospects. Go through the list of possible board members and narrow the list to the strongest core group (six to nine individuals). Prioritize the list of remaining applicants based on the diversity needs of the board. Make plans for immediate follow-up with the core group prospects. 4. Assign contact person to each prospect. Assign an individual to contact each of the board prospects. Give each contact person the appropriate recruiting materials, including orientation packet, application, and job description. If the prospect is interested, give her or him the materials and discuss the next steps. 5. Contact top prospects. Set up interviews with top prospects. Interview should include a board member and the Executive Director. Focus discussion on expectations of board members and the identification of other possible prospects. Try to get final commitment from prospect at this meeting. Ask the personn to complete the application, either in the meeting itself or by sending it into the office. Discuss opportunities for involvement on committees in lieu of board membership. 6. Conduct orientation. Conduct a board member orientation for all new board members. Assign mentors to assist new members, and make committee assignments to all board members. Ask each board member to complete the board member agreement and send to office. Solid Ground Consulting 33

36 Oregon Nonprofit Leaders Conference Board Member Application Name Date Address Daytime Phone: Evening Phone: Profession/Occupation: Please list current or prior board experience: Organization Dates Why are you interested in serving on the Board? What skills and background do you offer as a board member? Feel free to attach additional pages, resume or any materials you feel would be helpful. 34 Solid Ground Consulting

37 TRAINING RESOURCES Board Development Prospective Board Member Referral This form should be provided to all board members each year when the board reviews the set of skills and attributes that are needed on the board in the upcoming year. As referrals are received, they should be placed in a file for ongoing reference by the current and future board development committees. Referred By: Date: Name: Home Address: Home/Mobile phone: Home Fax: Organization/Business: Title: Business Address: Bus. Telephone: Bus. Fax: Solid Ground Consulting 35

38 Oregon Nonprofit Leaders Conference Prospective Board Member Referral (continued) Please provide the following information if available. Approximate age: Spouse s name: Relevant skills/experience: Interest in our organization: Education: Special interests: Other affiliations with individuals, organizations, foundations: Other board (or nonprofit) experience: Known level of giving: Why do you think this person would be a good board member? Who on our board would you suggest should meet, cultivate, and/or recruit this prospect, and why? Other Comments: 36 Solid Ground Consulting

39 TRAINING RESOURCES Board Development Board Profile Grid José Cynthia Sam Walter Lydia Dawn Steven Lamar Skills and Knowledge Accounting/Financial Mgt. Personnel Management Fundraising Strategic Planning Nonprofit Management Leadership Public Relations/Publications Meeting Skills Legal Issues Education Biology/Site Ecology Grassroots Organizing Real Estate Contacts and Influence Business Community Media Government Agencies Ethnic/Minority Groups Conservation Organizations Native American Tribes Demographics Female Under 45 years Ethnic/Cultural Minority Rural Oregon Low income Solid Ground Consulting 37

40 Oregon Nonprofit Leaders Conference Blank Board Profile Grid Skills and Knowledge Contacts and Influence Demographics 38 Solid Ground Consulting

41 TRAINING RESOURCES Board Development Board Orientation/Training Program I. Recruitment Stage II. New Member Orientation 1. Introduce the prospect to the agency and its goals at an initial meeting with a recruiting board member and the executive director. Have the recruiting board member pitch the organization and the positive aspects of board membership. At that time, give the prospect an information packet that includes at least the following information: Schedule a visit to the agency by the prospective member to see programs in action or to talk with program staff. An overview of the organization's purposes, major programs, funding sources, etc. A list of expectations of prospective members meetings, committee assignments, tenure, and time commitment. A list of current board members and key volunteers. Copy of bylaws and last annual audit of agency. 1. Schedule a meeting between the new board member and key people in the organization. Provide a detailed Board Member Manual, which should include bylaws, articles of incorporation, program descriptions, current budget, last audited financial statements, list of board members and their addresses, lists of committee and staff assignments, copies of minutes for the previous year, and a copy of the strategic or long-range plan. 2. At first meeting, introduce new member to all current board members and staff. Consider assigning a "mentor" board member to work with the new board member through the first three months. Also, make committee assignment. 2. Invite the prospect to attend a board meeting to get an idea of how the organization makes decisions and delegates responsibilities. Solid Ground Consulting 39

42 Oregon Nonprofit Leaders Conference Orientation/Training Program (continued) III. During First Three Months 1. Have regular check-ins with board "mentor" to answer questions and help member become acquainted. 2. Assign a specific committee task as part of regular implementation process. 3. Continue orientation to the work of the specific committee. 4. Continue to provide written background material to answer questions. IV. Ongoing Training 1. Consult with appropriate committee chair and staff to obtain full involvement of new member. 2. Provide assistance in carrying out responsibilities. 3. Provide opportunities for board members to attend special workshops related to the assignments and interest of the member. Provide special leadership training to current and prospective officers. 4. Expand responsibilities and rotate committee assignments to help satisfy the interests and needs of the board member. This has the added advantage of providing continuous development of volunteer leaders for the organization. 40 Solid Ground Consulting

43 TRAINING RESOURCES Board Development Board Member Orientation Agenda 9:00 Welcome Board Chair 9:05 Self Introduction All 9:30 Your Organization Executive Director Mission History Overview 9:40 Program Descriptions Program Directors 10:00 Break 10:10 Financial Information CFO/Treasurer Budget Balance Sheet YTD Income & Expenses Investments 10:30 Fundraising Development Director Annual Fund Strategies Special Event Strategies Capital Campaign Information Planned Giving 10:50 Volunteers/Advisory Councils Executive Director 11:00 Board Governance Board Meetings Committee Participation Board Retreats Responsibilities Board Manuals Governance vs. Management 11:15 Long Range Planning/Future Vision Executive Director 11:40 Tour Facility 12:00 Lunch Solid Ground Consulting 41

44 Oregon Nonprofit Leaders Conference Board Manual - Sample Contents 1. Organization Mission Statement 2. List of Board Members Names, addresses, short biographies 3. Board Member Job Description 4. By-laws 5. Organizational Chart 6. Committee List with assignments of all board and staff members 7. Strategic Plan, including Goals, Objectives, and Committee Work Plans 8. Operating Policies of the Board 9. Confidentiality Statement 10. Short History of the Organization 11. Minutes for the last year 12. Staff Job Descriptions, presented in brief outline form 13. List of Programs, with descriptive data 14. Budget 15. Audited Financial Statements for the previous year. 16. Sources of Funding 17. Friends of the Organization, including Advisory Council, ex-officio members, key volunteers. 18. Glossary of Terms 42 Solid Ground Consulting

45 TRAINING RESOURCES Board Development Rights of Volunteer Board Members 1. To be fully informed about the responsibilities, time commitment, organization, etc. before accepting the position of board member. 2. To have opportunities for orientation and continuing board training which will assist the board member in functioning effectively. 3. To be kept fully informed through accurate financial reports, management reports, regular and thorough briefings by staff, etc. about the operation of the organization. 4. To expect that volunteer time will not be wasted by lack of planning, coordination and cooperation within the organization or within the board. 7. To have successful job experiences that provide opportunities for personal growth. 8. To be trusted with confidential information that will help the board member carry out assignments and responsibilities. 9. To know whether the volunteer work is effective and what results have been obtained; access to an evaluation process which will measure that performance based upon measurable, impartial standards. 10. To be recognized at appropriate times for one s work and involvement as a board member. 5. To be assigned jobs that are worthwhile and challenging with freedom to use existing skills or develop new ones. 6. To be able to decline an assignment if it is felt that the match of skills and interests is not appropriate. Solid Ground Consulting 43

46 Oregon Nonprofit Leaders Conference Job Description: Major Gift Committee Purpose: The committee will be responsible for the successful execution and completion of the major gift fundraising program and capital campaign. Major gifts are gifts from individuals of $1,000 and over for the annual fund and $5,000 and above for capital. Responsibilities: Review and approve multiyear and annual campaign goals and work plans Monitor progress, adjust program strategy when necessary Ensure coordination between the campaign and annual major gift fundraising, including prospect clearance Recruit solicitors and advise on volunteer assignments Make recommendations for adoption by the Land Trust s board of directors on major changes to the campaign s conservation priorities and financial goals Review prospect candidates for major gifts and report suspects to campaign staff for research Cultivate and secure major gifts Make a meaningful gift to the organization s annual giving program and capital campaign 2004 Work Plan: First Quarter Refine campaign strategy Develop recognition policies Develop outreach materials Second Quarter Finalize cultivation calendar Solicit Board gifts Develop outreach materials Third Quarter Organize/implement cultivation events Set up one-on-one meetings Organize board involvement Fourth Quarter Make solicitation calls Develop 2005 goals/budget Recruit additional committee/board members Update committee work plan Committee members: Marc Smiley (Chair), Dave DeAntonis, Jennifer Sims, Dennis Hopwood, Scott Campbell. Key volunteers: Kathleen Sayce, Peter McCoy, Kerry Barnett. Staff: Glenn Lamb, Lisa DeGrace 44 Solid Ground Consulting

47 TRAINING RESOURCES Board Development Job Description: Board Member Responsibilities The board as a whole has the responsibility for governing the entire organization. The board is responsible for determining agency policy in the following areas: Human Resources, Planning, Finance, Development, Community Relations and Operations. Leadership/Human Resources 1. Board membership, which includes recruiting and orienting new board members, training, evaluating and recognizing existing board members and providing board members with opportunities to grow and develop as leaders. 2. Selecting and supporting the Executive Director, including reviewing performance regularly and providing on-going assistance as requested by the Executive Director. 3. Personnel policies, which include setting policy regarding salaries, benefits and grievance procedures. 4. Volunteer involvement, which includes setting policy regarding how the organization treats, recognizes and celebrates its volunteers. Strategic Planning 1. Set and review the organization's mission and goals on an annual basis. 3. Decide and plan which projects and programs the organization will provide. 4. Evaluate the organization's programs and operations on a regular basis. Financial Management 1. Ensure financial accountability of the organization. 2. Oversee an ongoing process of budget development, approval and review. 3. Manage and maintain properties and investments the organization possesses. Resource Development 1. Ensure adequate resources to achieve the organization's mission and implement the organization's programs and projects. 2. Participate in fundraising activities based on the individual's skills and background. 2. Plan for the organization's future, on a long-term and short-term basis. Solid Ground Consulting 45

48 Oregon Nonprofit Leaders Conference Job Description: Board Member (continued) Community Relations 1. Ensure that the organization's programs and services appropriately address community/constituents needs 2. Promote the organization to the general public, including serving as an emissary of the organization to the community. 3. Promote cooperative action with other organizations, including activities and occasions when the organization should take part in coalitions, joint fundraising, etc. Operations 1. Ensure that the organization's administrative systems are adequate and appropriate. 2. Ensure that the board's operations are adequate and appropriate. 3. Ensure that the organizational and legal structure are adequate and appropriate. 4. Ensure that the organization and its board members meet all applicable legal requirements. Requirements for Board Service: A demonstrated interest in the organization's mission and goals. Specific experience and/or knowledge in at least one area: Human Resources, Planning, Finance, Development, Community Relations, or Operations. Representative of a key aspect or segment of the population of the community. A willingness to expand knowledge or board responsibilities through orientation and ongoing training. A willingness to represent the organization to the community. Six to ten hours per month, distributed approximately as follows: 3-4 hours Board meetings (preparation and attendance) 2-3 hours Committee meetings (preparation and attendance) 1-3 hours Special requests A willingness to participate in board fundraising activities and make a financial contribution to the organization to the best of one's ability. 46 Solid Ground Consulting

49 TRAINING RESOURCES Board Development Job Description: Board Chair Responsibilities Provide leadership to the volunteer board in determining that the board meets all responsibilities. Serves as chief spokesperson in all board matters. Promotes agency activities aimed at achieving its goals. Human Resources Board Leadership Appoints, subject to ratification of the board, standing committee chairs and such special committees as may be deemed necessary to expedite the goals of the agency. Directs the board in the fulfillment of its stated roles. Presides in regular and special meetings of the board and its executive committee. Leadership Development Promotes the development of selected volunteers to assume future key leadership roles in the agency and assists current agency leadership in identifying key persons in the community who should be recruited to assist the agency. Supervision Supervises the executive director, assuring that the internal operations of the agency are conducted effectively and with maximum efficiency toward achieving its stated objectives. Supervises standing committee chairs to assure that their stated functions are being performed. Planning Oversees the planning and goal-setting process for the agency and ensures that the committees of the board and staff members work cooperatively so that the planning functions can be accomplished. Ensures that personnel evaluations take place for board and staff, as well as program evaluations. Finance Appoints finance committee and monitors the fiscal policy development and management of the agency. Community Relations Serves as official spokesperson to the public on all board matters, and ensures that the public relations efforts of the organization are clearly maintained. Solid Ground Consulting 47

50 Oregon Nonprofit Leaders Conference Job Description: Board Chair (continued) Organizational Operations Ensures that board committee structure functions well and that the staff structure is appropriate for the management of the agency. Monitors legal accountability processes of the agency. Minimal Job Requirements Demonstrated commitment to goals and objectives of the agency. Record of support for the agency by representing the community and by contributing both financially and with time. Demonstrated community leadership which will enhance the agency's image in the general community. Record of experience as a volunteer leader with responsibility in one or more major functions of the agency. Willingness to expand knowledge and board responsibilities and chair responsibilities through ongoing training. Willingness and ability to represent the agency in the community. Six to fifteen hours per month to contribute as leader of the organization. 48 Solid Ground Consulting

51 TRAINING RESOURCES Board Development Job Description: Committee Chair Committee: Board Development Chairperson: Board Member Responsibilities: This committee is responsible for the continuing development of the board of directors through recruitment, orientation, and leadership development. Specific responsibilities include: 1. Chairs Board Development Committee meetings. Sets agendas for each meeting with Executive Director. 2. Prepares with the Executive Director an annual calendar of Committee activities. 3. Prepares with the Executive Director and Chair annual objectives for the Committee. 4. Reports to the Board on the activities and recommendations of the Committee. 5. Assures that the Committee is appropriately constituted to discharge its responsibilities. 6. Develops leadership among Committee members to assure depth of experience for succession. 7. Assures that the Committee fulfills the following tasks: Develop and periodically review the Board Service Commitment, a document to be distributed to prospective and new Board members and incorporated in the Board Manual. Maintain and annually review, in consultation with the President and Executive Director, the Board Assessment Matrix in order to determine what skills/ attributes are needed to help meet organizational goals. Identify, research, cultivate and recruit potential Directors. Maintain an ongoing list of Board prospects annotated to indicate status of each prospect. Solid Ground Consulting 49

52 Oregon Nonprofit Leaders Conference Job Description: Committee Chair (continued) Review, in consultation with the President and Executive Director, the performance of incumbent directors who are eligible for re-election. Nominate new and continuing directors for election/re-election to the Board. For new directors, provide written information about the background and qualifications of the nominee at least one week prior to the board meeting at which election is scheduled. Plan and implement, in concert with the Executive Director, orientation to the full Board with appropriate recommendations. Annually review bylaws and recommend revisions as needed (optional). Nominate Board officers, in consultation with Executive Director and President. Annually recommend to the President acknowledgment and recognition for retiring Board members and/or Board members who have made a special contribution. Make recommendations to the full Board about policies and procedures that would improve the effectiveness of the Board or participation of individual Board members. Annually conduct a Board self-assessment exercise and report the results to the full Board with appropriate recommendations. Annually review bylaws and recommend revisions as needed (optional). 50 Solid Ground Consulting

53 TRAINING RESOURCES Board Development Job Description: Committee Committee: Fundraising Chairperson: Board Member Responsibilities: This committee is responsible for the overall direction of the development and fundraising efforts of the organization. Its membership comprises members of the board, as well as officers of the organization or agency and ex-officio advisors. More specifically, this position: 1. Chairs Fundraising Committee meetings and prepares meeting agendas in consultation with agency development staff. 2. Coordinates the preparation of an annual calendar and objectives for the committee with input from the staff. 3. Reports to the Board on the activities and recommendations of the Committee and the Board s efforts in fundraising. 4. Appoints subcommittee chairs as needed. 5. Works with committee and staff to determine what the development effort requires with respect to committee members and Board solicitors; works with Chair and Board Development Committee to recruit appropriate individuals. 6. Develops leadership among Committee members to assure depth of experience for succession 7. Assures that the Committee fulfills the following tasks: Works with staff to prepare annual and long range fundraising plans. Identifies funding goals for the following fiscal year during budget preparation; recommends goal to the Board as part of the budget process. Ensures that the fundraising program has the resources to be effective. Works with staff to coordinate identification of individual, corporate, and foundation prospects. Solid Ground Consulting 51

54 Oregon Nonprofit Leaders Conference Job Description: Committee (continued) Advises staff on appropriate strategies for specific donors and prospects. Personally makes calls as needed. Monitors progress of individual, corporate, and foundation solicitations; provides support and encouragement to Board solicitors as needed. Works with staff to determine policy and procedures about donor acknowledgments and other recognition strategies. Annually reviews fund drive materials with staff to determine whether new materials are needed. Participates in special events and other friendraising activities. [May or may not be responsible for special events.] [May or may not be responsible for setting goal for Board giving and for soliciting contributions.] 52 Solid Ground Consulting

55 TRAINING RESOURCES Board Development Job Description: Executive Director Responsibilities: Plans for and administers a program providing service to clients in accordance with the agency's stated purpose and in such a manner that optimum results are achieved in relation to the resources of the agency; operates under the general direction of the agency's board of directors. Human Resources The executive director relates both to the board of directors and to the staff of the agency. Board of Directors Develops and recommends to the board of directors specific, written, long- and short-range plans for the development of agency programs and services. Maintains appropriate relations with the board and various board committees, and keeps them informed. Interprets trends in the field(s) of service in which the agency is engaged, by maintaining involvement in the professional field as a whole. Participates in an orientation and training program for the board. Staff Supervises and directs key staff in the performance of their duties, evaluates the performance of key staff members, and provides overall control and direction for the personnel function of the agency, including active participation in or approval of personnel actions. Manages volunteer staff activities. Planning Evaluates the services being provided by the agency in relation to specified goals and standards, and recommends modifications, where appropriate. Recommends and/or provides input on proposed new programs. Finance Prepares agency budgets related to physical, financial, and human resources, and is accountable for control of these resources once approved. Directs all financial operations of the agency. Participates in fundraising activities by writing letters, making speeches, and stimulating activities of others in direct fundraising, and may provide overall direction. Solid Ground Consulting 53

56 Oregon Nonprofit Leaders Conference Job Description: Executive Director (continued) Community Relations The executive director handles public relations activities, client relations, and interagency relations functions. Public Relations Interprets the function of the agency to the community through direct involvement and through public relations programs, including personal contact, descriptive program literature, and work with the media; works closely with the board for an effective division of labor. Client Relations Acts to maintain highly effective client relations under all agency programs. Interagency Relations Maintains appropriate relations with other professional and social service groups in the community and serves on appropriate community committees. Provides coordination with funding sources; federal, state, and local government units; and other agencies in similar fields of service. Organizational Operations Recommends policies to the board and/or assists in the formulation of effective policies by the board. Has chief administrative responsibility for public accountability of the agency, maintenance of agency facilities, and regular reporting to various bodies. Carries chief staff responsibility to ensure that legal obligations of the agency are met. Minimal Job Requirements: Education: B.A. or B.S. degree in Communications, Public Administration, or similar field. M.A./M.S. preferred. Experience: Three years of supervisory or managerial experience with nonprofit organization. Experience working with conservation issues preferred. Skills: Ability to work effectively with volunteer boards and committees; ability to plan, monitor, and evaluate budgets; ability to manage people; ability to organize, plan, and implement activities appropriate to further organizational goals. 54 Solid Ground Consulting

57 TRAINING RESOURCES Board Development Board Member Agreement As a board member, I have certain expectations about my involvement with this board. These expectations include both what I want to give and what I want to get back in return. What I expect from the Board I want to serve on this board because: The things I expect to enjoy the most about being on this board are: The things I expect to enjoy the least are: There are certain personal or professional goals that my involvement in this group can help satisfy. The areas where I want to grow are: I expect the following from this organization: Clearly defined roles and responsibilities for board and staff members, including clear lines of authority. Orientation and training necessary to enhance my effectiveness as a board member. Materials provided in advance of meetings where decisions or deliberation will occur. Timely and accurate financial reporting. Appropriate use of committees to assure efficient use of board and staff time. I also recognize that this board has certain expectations of its members. It is as important for the board to get what it needs from me as it is for me to get what I need from the board. Solid Ground Consulting 55

58 Oregon Nonprofit Leaders Conference Board Member Agreement (continued) What the Board expects from me As a board member, I believe that I bring the following strengths, skills and knowledge: I will serve in the following areas as defined by my personal work plan: Fundraising Relationship Building Other I accept responsibility for ALL of the following: Time Commitment: Attend board orientation and training sessions Attend board meetings, committee meetings and membership meetings Complete assignments and prepare for meetings Participation: Participate in board fundraising activities and make a financial contribution to the organization to the best of my ability. Participate in meetings and ask appropriate questions when needed Serve on at least one committee as a part of my board role Participate in the on-going tasks of the board Act as an advocate for the organization to the outside public Knowledge and Preparation: Educate myself on the organization's purpose, history and needs Keep current on the outside trends affecting this organization Keep current on the role and responsibility of board involvement. I have read and agree to this commitment as a member of the board of directors. Signature: Date: 56 Solid Ground Consulting

59 TRAINING RESOURCES Board Development Why Evaluate Board Members? 1. To ensure that the board is representative of the community. 2. To determine if the board is achieving its objectives in policy development and specific board tasks. 3. To pinpoint board strengths and weaknesses. 4. To pinpoint the strengths and weaknesses of the individuals and the roles they fill. 5. To foster growth and development of individual board members. 6. To set a climate of evaluation for the entire agency. 7. To highlight areas in which the agency should change. 8. To demonstrate to the community the seriousness of purpose of the board and the fact that the board takes its responsibilities seriously. 9. To help those board members who are trying to provide better leadership in the community. 10. To give perspective to board functions and allow the board to look at an overview of future tasks. Solid Ground Consulting 57

60 Oregon Nonprofit Leaders Conference Board Member Evaluation This is an evaluation based on a version of the board member agreement shown earlier in this packet. Below are a list of specific things from your board agreement that you wanted to get out of your involvement with this organization. How well did this organization give you what you wanted? What could be done to improve your satisfaction with this board? What could the board do to improve relationships among board members? Below are a list of specific things from your board agreement that you wanted to give to this organization as a board member. Were you able to give what you wanted to give? What could be done to improve your contribution? 58 Solid Ground Consulting

61 TRAINING RESOURCES Board Development Board Member Evaluation (continued) What could this organization do to help you with your contribution to the Board? Below is a list of specific responsibilities from the board agreement. How would you rate your involvement in each area below (1 = Excellent, 2 = Satisfactory, 3 = Needs Work, 4 = Poor)? Time Commitment Attend board orientation and training sessions Attend board meetings, committee meetings, and annual planning retreat Complete assignments and prepare for meetings Participation Financially support this organization to the best of my ability Participate in meetings and ask appropriate questions when needed Serve on at least one committee of the board Provide assistance to staff at their request Act as an advocate for the organization to the outside public Knowledge and Participation Educate myself on the purpose, history, and needs of this organization Keep current on outside trends and issues affecting this organization Keep current on the role and responsibility of board involvement What would you suggest to improve your involvement in the areas above? Is this evaluation a helpful tool to improve your participation in the board? How could it be improved? Does this board ask too much from its members? Is there anything else you would like to say about board member's involvement and participation? Solid Ground Consulting 59

62 Oregon Nonprofit Leaders Conference Board Member Self-Appraisal Name Date Using the following guide, please rate yourself on the questions below: 1 never a problem 2 sometimes a problem 3 increasingly a problem 4 now a definite hindrance I am able to attend scheduled meetings. I arrive on time for meetings. My schedule is flexible enough to attend emergency sessions. My career does not conflict with my position on the board. I am able to discuss controversial topics effectively I review background material before meetings. I work easily with other members of the board. I work easily with the executive director. I keep an open mind on issues. I make at least one positive contribution to each meeting. I have a high level of commitment to and interest in our organization. I participate actively on at least one committee. I participate in fundraising as requested by staff and make a personal financial contribution. I speak positively about the organization in public. 60 Solid Ground Consulting

63 TRAINING RESOURCES Board Development Running Effective Board Meetings Purpose of a Board Meeting Inform, convince, or inspire directors Resolve conflicts between persons and factions and lead to appropriate decisions Allow debate on significant issues and strategic directions Coordinate people and activities Create common understanding and common purpose Do's and Don'ts for the Board Chair DO ask yourself before every meeting "what do we need to accomplish at this meeting?" Refer to the previous meeting's minutes. Construct the agenda and conduct the meeting accordingly. DO develop an agenda with the executive director. The agenda should have times and a person responsible for each agenda item. Also each agenda item should be marked to indicate whether its purpose is informational, for discussion, or for a decision/action. DO NOT clutter the agenda with minor issues or committee or staff reports that are unrelated to significant topics for discussion or decision. DO make sure the agenda and supporting documentation is distributed by mail or fax at least three days before the meeting. DO make sure directors have the information in advance that they will need to make decisions. DO NOT make decisions based on information distributed at a meeting. If the information is not available until the day of the meeting, reschedule consideration of the agenda item for a subsequent meeting. DO make sure the board packet (information backing up the agenda) contains information that is concise, accurate, and timely. Where a decision will be made, a summary of the relevant information should be provided highlighting the key points and the recommendations of the executive director and/or the committee. Solid Ground Consulting 61

64 Oregon Nonprofit Leaders Conference Effective Board Meetings (continued) Do's and Don'ts for the Board Chair cont. DO make sure the room is comfortable and well lit and that water and coffee or tea are provided. DO make sure the seating plan facilitates interaction among directors. A broad rectangle, with all directors facing in, is preferred. DO make sure the Executive Director is sitting next to you. DO make sure someone is taking minutes. DO start on time. DO review the agenda briefly and point out what needs to be accomplished at this meeting. DO stick to the time schedule, but be flexible enough to deviate if circumstances dictate. DO take a minute to acknowledge special events or special individual accomplishments that have occurred since the last meeting. DO NOT talk too much. Your role is to be a neutral presider over the meeting process, to encourage full participation and teamwork, to prevent domination by a few, to make sure everyone understands the issues at hand, to help frame issues and bring them to resolution, to help crystallize consensus, to determine when it's time to bring an issue to vote or refer it to committee or seek additional information, to deflect tangents and stay on focus, to pay attention to the agenda and the clock. DO practice using the following techniques for encouraging discussion: How do you feel about that? Let me see if I understand your position, you are saying... Can you clarify that? Can you give an example? Let's give Tim a chance to explain... Sally, you haven't said so, but I think you agree... I'm concerned that we are not hearing from everybody on the committee. How do you feel, Lisa? If this doesn't work, what will we lose? 62 Solid Ground Consulting

65 TRAINING RESOURCES Board Development Effective Board Meetings (continued) Do's and Don'ts for the Board Chair cont. DO make sure that decisions or assignments made are reflected in the minutes. Confirm with the recorder that he/she has written down the appropriate information. DO NOT schedule a meeting to last more than two hours. DO summarize at the end of the meeting what has been accomplished and what assignments have been made. Also, thank directors for their participation. DO ask directors to evaluate meetings twice a year, in writing and anonymously. The key question is: "Was this board meeting a good use of your time?" Solid Ground Consulting 63

66 Oregon Nonprofit Leaders Conference Succession Planning Leadership transitions occur in every organization for any number of reasons, both planned and unplanned. These transitions are transformational and offer a powerful opportunity to strengthen the organization if a thoughtful plan is in place. But poorly planned and managed transitions can bring on a crisis, leading to decreased effectiveness and even organizational failure. Consider the benefits of succession planning: An organization with an emergency succession plan in place is prepared for an unplanned leadership transition. Succession planning allows the board of directors and the leadership team to step back and look with fresh eyes at the organization's leadership needs, taking into account the long-range strategic plan. Succession planning ensures that a pipeline of strong and capable leaders exists with individuals ready to take on more significant leadership roles as needed. Succession planning builds stronger teams throughout the organization. It molds individual visions into a shared one. It aligns efforts toward common goals by clarifying relationships and work flows. Succession planning and associated leadership development activities are a powerful retention tool. Potential successors understand their value to the organization and appreciate the investments being made in their career development. There are two types of succession plans: 1. An Emergency Succession Plan provides a road map to guide the board and leadership team through an unplanned leadership transition. 2. A Long-Term Succession Plan articulates a long-range view of staff leadership in the organization that drives leadership development. This plan provides the framework for a seamless transition. 64 Solid Ground Consulting

67 TRAINING RESOURCES Sustainable Leadership Succession Planning (continued) Emergency Succession Planning Process The emergency succession planning process is informed by a series of questions that guide the board and staff in the event of an unplanned leadership transition. The plan is developed by staff with input and final approval by the board of directors. At a minimum, the plan should: Clarify primary responsibilities for all key positions Identify interim leaders to fill leadership positions in the event of an unplanned transition Guide communications with important stakeholders Outline lines of authority and individual responsibilities for implementing the plan Long-Term Succession Planning Process There are three steps in creating a Long-Term Succession Plan: 1. Align succession and strategic planning Before any decision can be made about what type of leader an organization will need down the road, an analysis should be completed to identify existing trends, organizational capacity, and anticipated future needs. Consider: The most significant challenges the organization and sector are likely to face over the next four to six years The organizational structure needed to carry out the mission The executive competencies and experience required for future leadership of the organization Only rarely will future opportunities and challenges require the same skills that worked in the past. Thoughtful analysis and research will help prevent the organization's current leaders from simply looking for a clone of the incumbent. This important first step lays the groundwork for the rest of the planning process, and will foster a stronger commitment to the succession process itself. Solid Ground Consulting 65

68 Oregon Nonprofit Leaders Conference Succession Planning (continued) 2. Define the job(s) An important component of the Long-Term Succession Plan is the success profile. This profile should detail the minimum education, experience, and competencies required for success in the position. It should also define areas of responsibility and expectations for performance in those areas. 3. Identify and develop internal candidates The heart of any effective succession planning process is a leadership assessment that identifies promising internal candidates from the pool of current staff and board members. These are emerging leaders who could be ready to fill a vacancy within two to four years if appropriate investments are made in their professional development. The board of directors leads the process of identifying internal candidates for the top executive role, and the top executive leads the process for all other leadership positions. Board members and senior staff typically make initial recommendations. These candidates are then assessed against the appropriate success profile. Interviews and 360-degree reviews can be helpful tools in the assessment process. Once the pool of candidates is finalized, the next step is to put in place an individual development plan for each person that ensures he or she will be ready to lead within two to four years. Delaying development puts the organization at risk for shaky leadership after the transition or even a leadership gap if a new leader needs to be recruited. To be sure, much can be done in a few years to develop an executive candidate's leadership potential, including rotations in different functional areas, international assignments, exposure to the board, and cross-functional learning projects. Success hinges on mutual commitment to a robust development plan that is reviewed and updated every six months or so. 66 Solid Ground Consulting

69 TRAINING RESOURCES Sustainable Leadership Succession Planning (continued) Roles in Succession Planning Board members, the CEO, and members of the leadership team each have a specific role to play in succession planning: Stakeholder Role(s) Primary Duties Board of Directors Develop a robust Oversee the process leadership pipeline. Guide discussion around the vision of the organization's future and needed leadership competencies Executive Director / CEO Leadership Team Identify at least one potential successor within the organization. Help define desired leadership skills and competencies based on the organization's current and future needs. Provide input into the process Share insights into the current state and strategies of the organization, and make predictions about future trends Provide an objective view of internal candidates Solid Ground Consulting 67

70 Oregon Nonprofit Leaders Conference Emergency Succession Plan Information and Contact Form Nonprofit Status IRS determination letter IRS Form 990 Bylaws Mission statement Board minutes Corporate seal Onsite Location Offsite Location Online URL Financial Information Employer ID Number (EIN) #: Form 990s (current & previous) Audited financials (current & previous Blank checks Computer passwords Donor records Vendor records Volunteer records 68 Solid Ground Consulting

71 TRAINING RESOURCES Sustainable Leadership Emergency Succession Plan (continued) Information and Contact Form Auditor Name: Phone Number/ Bank Name(s): Account Number: Account Number: Account Number: Account Number: Branch Representative(s): Phone Number: Branch Representative(s): Phone Number: Fax: Fax: Investments Financial Planner / Broker Company: Representative Name: Phone Number: Who is authorized to make transfers? Wire transfers? Are there alternatives? Who are the authorized check signers? Solid Ground Consulting 69

72 Oregon Nonprofit Leaders Conference Emergency Succession Plan (continued) Information and Contact Form Legal Counsel Attorney Name: Phone Number/ Attorney Name: Phone Number/ Attorney Name: Phone Number/ Facilities Information Office lease location (for renters): Building deed location (for owners): Building Management Company Name: Contact Name: Phone/ Office Security System Company Name: Account #: Representative Phone/ Broker Phone/ 70 Solid Ground Consulting

73 TRAINING RESOURCES Sustainable Leadership Emergency Succession Plan (continued) Information and Contact Form Insurance Information General Liability / Commercial Umbrella Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Directors & Office Liability Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Health Insurance Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Unemployment Insurance Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Workers' Compensation Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Solid Ground Consulting 71

74 Oregon Nonprofit Leaders Conference Emergency Succession Plan (continued) Information and Contact Form Insurance Information (cont.) Disability Insurance Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Life Insurance Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Dental Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Long-Term Care Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ Retirement Plan Company/Underwriter: Policy No.: Representative Phone/ Broker Phone/ 72 Solid Ground Consulting

75 TRAINING RESOURCES So What? After sitting through this workshop, at least one (hopefully more than one) idea may have struck you as relevant to your organization. What are the most important ideas presented today for your organization? Which items are the most important first steps towards some of these improvements? What areas do you think need additional clarification and training? Solid Ground Consulting 73