Developing an Effective Board

1. Developing an Effective Board David Younkman Strategic Consulting September 2006

2. Our Objectives Today • Why you need a board • How you can work with your board • How you can build and strengthen your board David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

3. What is a board anyway? • A collection of people working together responsibly through an organization to accomplish something great. “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it is the only thing that ever has”.~ Margaret Mead David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

4. Board of Directors Advisory Board Honorary Board Governs the NGO Technical resource Lends credibility Types of Boards David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

5. Board Responsibilities • Sets the Mission, Vision and Strategy • NGO Administration and Policies • Program Planning & Budget • Evaluation of Effectiveness • Select, Support, and Evaluate Lead Staff • Financial Stewardship/Financial Health • Represent NGO in the Community • Assess its own Performance David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

6. The Perfect Board Member • Work • Wealth • Wisdom • Diversity David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

7. Opportunities to UtilizeBoard Members • Site visits • Presentations at public meetings • Introductions to donors/partners • Conferences/workshops • Discuss ideas with you • Other thoughts? David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

8. Fundraising:What Every Director Wants from Their Board • It starts with them: Set a board policy for giving – • “give, get or get off” • Every board member must give something • Make board giving part of your revenue in your org budget, so the board can track progress • Announce all board gifts and publicly THANK THEM at board meetings then… • Get them out talking, presenting, providing tours and asking others to join them! David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

9. Other Ways Boards Can Help with Fundraising • Make challenge gifts • Ask their friends for support • Host a dinner/event for the NGO • Help reduce costs--get equipment/office space donations • Loan guarantees/lines of credit • Call funders to thank for gifts David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

10. Identifying New Board Members - Factors to Consider • Gaps and needs –your Board matrix • Their knowledge, expertise, reputation • Duplication? • Is your org. a priority? • Willingness to give; to ask; to work? • Local vs. national knowledge/contacts David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

11. Steps for Inviting a New Board Member • Review potential names with current board members • Invite them to a site visit/public meeting so they can see what you do • Go to lunch with another board member to talk about the NGO ~ and your expectations David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

12. Steps for Inviting a New Board Member (cont) ASK! • Do not assume that they know you want them to be on the board. You have to ask them and hear them say yes. That means that they are committing to the work ahead and to the fundraising goals! David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

13. What you need to know about board members • Contact information • Special skills or expertise: • fundraising, HR, finances, business, PR, technology, legal, industry, or mission specific • Professional background • Education • Professional affiliations  • Other board service • Expected level of gift or possible in-kind donations • Special interests or hobbies David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

14. Board Orientation:What do they need to know? • List of board members and contact info • Calendar of meetings • NGO legal/institutional info • Staff list with job descriptions, org. chart • Financial data – budget, audit, procedures • Board minutes and agendas • Annual Workplan, goals David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

15. How to Get Your Board to Work for You • Keep them informed, but don’t overwhelm • Ask them to do ONE THING at a time ONLY • Make them proud to talk about the organization • THANK THEM every time they do something for the organization • Make it fun (retreats, dinners, etc.) David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

16. Executive Committee Financial Committee Legal Review Committee hiring, compensation, board recruitment financial oversight, approves staff expenses, investment policy Reviews data, justification and recommends legal action Committees ~ how to organize your board David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

17. What to do with a problem board member? • Ask Board Chair or Vice-Chair to intervene • Ask them to serve on Advisory or Honorary boards as a transition • Don’t invite them in the first place! David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

18. Hallmarks of an Effective Board • Thinks strategically ~ sets measurable goals • Clarifies roles and responsibilities • Focuses board time and attention on important issues • Gets the important things done ~ Results Matter! • Uses evaluation to learn rather than criticize • Has the confidence to take risks • Trusts and supports the staff • Values open and honest communication • Works together as an effective corporate unit David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

19. Remember Effective boards take time and attention. Effective boards multiply the power of your organization. David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.

20. Resources Board Source http://www.boardsource.org Synergos Institute http://www.synergos.org Council on Foundations http://www.cof.org CompassPoint/Board Café www.compasspoint.org • - “Nothing great was ever achieved • without enthusiasm”. • -- Ralph Waldo Emerson David Younkman ~ Strategic Consulting ~ younkman@netzero.net MEET U.S.