Orcas Island Community Foundation April 2014
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1 Orcas Island Community Foundation April
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3 Nonprofits provide services and support for the community. What is the role of a nonprofit? Nonprofit organizations are not individually owned: the community owns all nonprofits. Board members are stewards of the nonprofit organization acting on behalf of the community. Boards ensure the organization stays true to its mission and that the mission remains relevant to the community Board Boot Camp-March 2014 slide # 3
4 The Board as a whole is responsible for: Ensuring the organization is sustainable and financially stable. Committing resources and directing the ongoing focus towards achieving the stated mission. Establish a strategic plan and an annual work plan for staff and volunteers Maintaining and honoring the State and Federal requirements to maintain tax exempt status. all required tax and license forms are current and filed is current on legal responsibilities maintains appropriate records complies with its bylaws that the organization stays true to its stated purpose and that donor dollars are well spent in support of that mission Setting policies and ensuring practices that protect the nonprofit as a community asset. Developing the organizational structure that can support the work of accomplishing the mission. Committees, task forces, staff and/or volunteer efforts Board Boot Camp-March 2014 slide # 4
5 Leading by example- give of your time, treasure and talent as best as you can. Individual Board members are responsible for: Acting as an ambassador to the community at large. Advocating for your organization. Stay active, attentive, and informed (read the Board meeting materials). Supporting the will of the whole board by taking responsibility for Board decisions, even if you dissented. Contributing to the resources needed to accomplish the work of the organization Board Boot Camp-March 2014 slide # 5
6 The Three Duties The main legal responsibilities of a nonprofit board are often summarized in the "three Ds": Duty of care: Board members are expected to actively participate in organizational planning and decision-making and to make sound and informed judgments. Duty of loyalty: When acting on behalf of the organization, board members must put the interests of the nonprofit before any personal or professional concerns and avoid potential conflicts of interest. Duty of obedience: Board members must ensure that the organization complies with all applicable federal, state, and local laws and regulations, and that it remains committed to its established mission. In addition to its legal responsibilities, the board acts in a fiduciary role by maintaining oversight of the nonprofit's finances. Board members must evaluate financial policies, approve annual budgets, and review periodic financial reports to ensure that the organization has the necessary resources to carry out its mission and remains accountable to its donors and the general public Board Boot Camp-March 2014 slide # 6
7 The Board is responsible and legally liable to run the organization in a fiscally responsible manner. Responsibility and Liability Bylaws Are they being honored? Do they need updating? Fiscal oversight: To audit or not? Multiple eyes on the prize--setting up a secure system for handling money. 990 filing Directors and Officers Insurance What does it cover? What does it cost? Board Boot Camp-March 2014 slide # 7
8 A shared vision is held by all Board members. Board members and their individual ideas are equally valued. Key attributes of a healthy Board Leadership development is a part of the strategy. The organization readily embraces change and risk taking is encouraged. Board members are informed and energized, and encouragement flows freely. Board meetings are stimulating and enjoyable Board Boot Camp-March 2014 slide # 8
9 Mistakes are considered part of the learning process. Key attributes of a healthy Board continued The structure doesn t limit growth, but provides healthy boundaries. There is a freedom to offer constructive criticism, even of top leadership, without fear of retribution. Conflict is not discouraged, but needs to occur in a respectful and constructive manner Board Boot Camp-March 2014 slide # 9
10 Get the right people on the bus Make sure they are in the right seats on the bus. Building and maintaining a health board culture Keep the bus driving towards the vision. Set clear responsibilities and expectationsbe honest. Respect Different opinions Different backgrounds The gift of service Provide continuing education. Recruit actively and thoughtfully Board Boot Camp-March 2014 slide # 10
11 Build a structure that fits your needs Organizational Architecture If you have staff- The Board is the boss of the Executive Director, individual Board members are not. The Board Chair is the representative. The Executive Director is the boss of any additional employees. Committees are a good way to share the work Task Forces can be formed to address specific, usually short term, opportunities Membership organizations Board Boot Camp-March 2014 slide # 11
12 Decision Making How does your organization make decisions? If your organization conducts online votes, Washington State requires they be unanimous to stand. If any member votes against the issue, it must be added to the next agenda for further discussion. Most organizations operate under majority rule as identified in their bylaws. The Consensus model is another option Board Boot Camp-March 2014 slide # 12
13 Keys to running a good meeting Set an agenda - then stick to it. Consent agenda Important discussion and professional development should come early in the agenda committee informational reports toward the end Send out materials in a timely manner. Share the air. Leave room for each Board member to contribute. Distribute minutes for review shortly after the meeting Board Boot Camp-March 2014 slide # 13
14 Step 1. Identify the needs of the board: the skills, knowledge, perspectives, connections needed to implement the strategic plan. What do you have? What s missing? Board Recruiting Step 2. Cultivate sources of potential board members and identify individuals with the desired characteristics. Step 3. Recruit prospects. Describe why prospective members are wanted and needed. Explain expectations and responsibilities of board members and don t minimize requirements. Invite questions. Step 4. Orient new board members both to the organization and the board Board Boot Camp-March 2014 slide # 14
15 Thank you to the following leaders and organizations for providing resources for our event: Thank You Kate Janeway for slide inspiration, Lisa Byers for Board Decision making content, Board Source for numerous articles and examples, And to YOU for your interest and dedication to serving our community well. Please go to under the OICF in the Community tab, for all of today's materials and links to additional nonprofit resources Board Boot Camp-March 2014 slide # 15
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