Close Your Eyes, Tap Your Heels & Build a Moneymaking Board

1. Close Your Eyes, Tap Your Heels & Build a Moneymaking Board Presented by Mary Beth Harrington, Passionate Nonprofit Expert 501c³ – Taking Nonprofits to the Third PowerOctober 24, 2014

2. Housekeeping • Start on time and end on time • Sign spreadsheet to receive handouts • Q & A welcome! • Electronics muted please! • Business cards available upon request 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

3. Biography • 10 years corporate marketing, public relations, advertising (psychiatric hospitals, DFW Tourism) • Carter BloodCare, Marketing Director • Dallas Zoo, Graphics Specialist • Dallas Public Library, Volunteer Coordinator • Volunteer Center of North Texas – Agency Relations Director • Austin Public Library Foundation – Executive Director • TANO – Community Outreach Director • San Antonio Area Foundation – Curriculum Development Director • 501c³ - Taking Nonprofits to the Third Power - President 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

4. 501c³ - Taking Nonprofits to the Third Power A few of our clients…. • Texas Habitat for Humanity • US Tennis Association (USTA) Texas • Meals on Wheels of America • Texas Association of Museums • Keep Texas Beautiful America and Texas • Literacy Texas • Texas Library Association • Texas CASA clients…. • Brush Country CASA • CASA North Texas • CASA of Cameron and Willacy Counties, Inc. • CASA of Hidalgo • CASA of Matagorda and Wharton • CASA of South Central Texas • Casa of Galveston County • Hill Country CASA • Lone Star CASA 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

5. Board Development • Education • Enlightenment • Empowerment • Exorcism 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

6. Sources for Session Information • Office of Attorney General of Texas • Secretary of State of Texas • BoardSource • Internal Revenue Service 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

7. Magic of Moneymaking CASA Boards 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

8. Today’s Agenda A revenue generating board,knows theirroles and responsibilities! • Responsibility of Governance • Fiduciary Responsibilities • Board Management and Recruitment • Responsibility of Financial Sustainability andAdvocacy • Nonprofit Resources 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

9. Attributes of an Effective Nonprofit Board • Commitment to the mission of the organization. • Understanding of the board’s governance roles. • Active involvement in board activities, committees. • Thinking and acting strategically; not involved in day-to-day management of the organization. • Abiding by the Duties of Care, Loyalty and Honesty. • Supporting the organization both financially and through advocacy. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

10. Responsibility of Governance

11. Strategic Direction The Board has Ultimate Responsibility for Setting the Organization’s Strategic Direction. • Annual planning retreat. • Strategic plan is kept alive. • Progress reports at every Board meeting. • Identify development goals for the board. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

12. Board Should Raise 10% of The Budget FACT: 41% of nonprofit respondents ran a deficit in 2012 • Board Should be Responsible for 10% of the Nonprofit Budget • Could be with Give or Get Activities • The Board Must Really Understand the Money Engine • The Board Must Share the Burden • The Board Must Tap Into Their Unique Assets 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

13. Board Should Raise 10% of The Budget • How to make this work: • Work one-on-one with each individual board member to create an annual plan for how they will meet their part of the goal. • Give the board lots of different ideas for how they can meet their goal. • Provide the training, materials, and education they need to execute their individual plan. • Hold each individual board member accountable for their individual plans and goals, check in with them every month to see how they are progressing. • Have the board report at every meeting about their progress on the 10% goal.http://www.socialvelocity.net/?s=board+budget&submit=Search#sthash.a3Cfrxd3.dpuf 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

14. Governance The Board has Ultimate Responsibility for the Effective and Efficient Governance of the Organization. • Policies and procedures for board operation. • Bylaws • Oversight (finances, planning, sustainability) • Training (orientation) 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

15. Fiduciary Responsibilities

16. Duty of Care “Board members must act as an ordinarily prudent person would act under similar circumstances.” Translation: • Board members must come to meetings prepared. • The Board speaks with one voice and respects the wishes of the majority. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

17. Duty of Loyalty Board members must put the interests of the organization above their own. Translation: • The Board has a conflict of interest policy and consistently enforces it. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

18. Duty of Honesty Board members must act in accordance with the organization’s stated mission and applicable laws. Translation: • The Board follows the bylaws, ensures timely and accurate filing to regulatory bodies, reviews the Form 990 before it is filed, etc. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

19. Policy “Musts” • Conflict of Interest Policy • Whistleblower Policy • Document Destruction Policy • Director’s & Officers Insurance 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

20. Responsibility of Board Management and Recruitment

21. Expectations Ensure a Consistent Message About Expectations, Roles and Responsibilities • Develop a Recruitment Packet: • Time requirements in detail. • Talent – serve on Board committees. • Treasure – make annual contribution. • Other: Roster, annual report, financials, fact sheet, history, accomplishments, etc. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

22. Board Orientation • Required for New Board Members • Governance and fiduciary duties. • Budget and financials (Form 990). • Strategic plan. • Board Member job descriptions • Commitment letter. • Mission, vision and core values. • Policies and procedures. • Conflict of interest. • Connections! Networks! 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

23. Another Board Member’s Contacts Your Contacts 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com Your Organization

24. Establish Effective Committees • What is required to achieve the annual plan of work? • Committees do the day to day work and report to Board via Committee Chair (Board Member) • Action plans shared with full Board. • Assess progress at every meeting. • Sunsets. • How will you use to select committee members? • Executive Committee 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

25. Board Tenure • Term Limits. Term Limits. Term Limits. • New blood, ideas, connections, $$$’s • Remove deadwood • Hold board members accountable • Average tenure is 3 years, renewable once. • Retire to Advisory or Emeritus Status. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

26. Advisory Boards • Allows board members an place to land at the end of their term • Keeps them engaged and committed • Create a written description of the advisory board’s responsibilities and the expectations for its members. • Assign a liaison from the official board of directors. • Commit the time to work with the advisory board so that “advisory board members [don’t] feel ignored or superfluous.” • Hold annual meeting, send updates. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

27. Board Commitment Letter • Restate job description. • Sign annually. • Make financial/or other commitment. • Escape clause: I agree that if, at any time, I am unable to fulfill the commitments as a member of the board of directors, I will give notice of my resignation to the president of the board. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

28. Board Bless and Release • Misrepresenting the organization, by saying negative things about the executive director, staff, or other board members to members of the public or press. • Doing media or public relations work without the knowledge of anyone else in the organization • Misunderstanding or taking no part in the fundraising aspects of their role on the board • Being difficult to work with, due to their overall negativity or lack of willingness to help • Not attending board meetings, creating a knowledge vacuum where they cannot make decisions based on facts 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

29. Responsibility for Financial Sustainability and Advocacy

30. 2013 Giving USA Report • Charitable givingincreased3.5% • Giving by individuals increased by 3.9 % • Giving by bequests declinedby 7.0% • Giving by foundations increased 4.4% • Giving by corporations increased 12.2% • Giving to religion islargest32% • Giving to education and human services13% • Giving to foundations10% • Giving to health organizations 9% • Giving to arts and cultural organizations 5% http://store.givingusareports.org 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

31. 2013 Giving USA Report • Giving by Individuals - 72% • Giving by Foundations – 15% • Giving by Bequests – 7% • Giving by Corporations – 6% http://store.givingusareports.org 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

32. Effective Fundrai$ing Success Rate • Individual Contributions • Bequests • Grants • Corporate donations • Special Events* Amount of Staff Time • Special Events* • Corporate donations • Grants • Bequests • Individual Contributions 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

33. Special Event Fundrai$ers Which of these is the real purpose of a special event? 1) To make as much money as possible! 2) To use the event as a way to market our mission to cultivate potential new donorsand if we make a profit, all the better! 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

34. “Friend”raising Board • Board members introduce “friends” to Executive Director • Board member follows meeting with phone call or note to “Friend”. • With permission, “Friend” is added to organization communications. • “Friend” is invited for tour of organization to see programs in action. • Board member follows tour with phone call or note to “Friend”. • “Friend” is invited to call to action event. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

35. Talk Story • Identify four or five supporter types/profiles • Have board members call donors and ask: • What is it that we do well? • How did you get engaged in our cause? • Two things emerge: • Rebuilds the connection because it reminds them why they care about your organization • Identifies what programs people want • Use social networks and social media to reach new people! 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

36. Another Board Member’s Contacts Your Contacts 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com Your Organization

37. Advocate Everyday • Once a week tell someone about your organization • Be the “go to” person for information on CASA • Effective board members serve on one board at time • Loyalty • Faith Based Organization • School • Habitat 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

38. 7 Things Board Members Can Do To Raise More Money • #1 - Invest. Make a personal significant financial investment in the organization.  • #2 - Open Doors. • #3 - Get Strategic. • #4 - Expand the Organization’s Revenue Model. • Individual gifts • Special events • Earned revenue • Grants/Foundations 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

39. 7 Things Board Members Can Do To Raise More Money • #5 - Fund Revenue-Generating Capacity. Make sure the organization invests in sufficient development capacity. • Director of Development • Donor development software • Consultants etc. • #6 - Articulate Why Someone Should Give • #7 - Get the Full Board on Board. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

40. Ways Board Members Can Raise Money Without Fundraising • Help create or evaluate a business plan for an earned income venture. • Advocate for government money. • Provide intelligence on prospects. • Set up a meeting with a prospective customer. • Email, call or visit a donor just to say thanks. • Explain to a prospect why you serve • Host a small gathering at your home • Recruit an in-kind service • Negotiate a lower price from a vendor. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

41. Ways Board Members Can Raise Money Without Fundraising • Invite 5 Friends to Tour the Program • Talk About Your Nonprofit on Facebook • Show Up to One of Your Nonprofit’s Events • Tell The Story Of Why You Serve • Help Craft a Case for Support • Analyze Your Networks • Go on a Solicitation Call. • Educate a Funder About the Power of Capacity Capital • Give a Gift 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

42. 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

43. Nonprofit Resources

44. Favorite Nonprofit Websites • GrantStation – www.grantstation.com • Chronicle of Philanthropy - www.philanthropy.com • Nonprofit Quarterly - www.nonprofitquarterly.org • Blue Avocado – www.blueavocado.org • BoardSource - www.boardsource.org • Idealware – www.idealware.org • TechSoup – www.techsoup.org • Nonprofit Risk Management Center – www.nonprofitrisk.org • Independent Sector – www.independentsector.org • C-Forward – www.cforward.org • Texas C-Bar – www.texascbar.org 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

45. 501c³ - Taking Nonprofits to the Third Power • Programs for Conferencesand Resource Centers • Customized Programs for Individual Nonprofits • Strategic Initiative Retreats for Nonprofit Boards • Nonprofit Interventions for Staff, Boards and Volunteers • Certified ToPs (Technology of Participation) Facilitations • Qualified LeadershipPlenty Courses • Constant Contact - Authorized Local Expert • Certified CCAT (Core Capacity Assessment Tool) Evaluations • Association Management Consulting Targeting Membership Growth Dynamics • Volunteer Program Assessments • Free Nonprofit Career Counseling for Universities as well as Individuals • FreeNonprofit Referrals and Resources 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

46. 501c³ - Taking Nonprofits to the Third Power • Volunteer Management Services • LeadershipPlenty Modules • Nonprofit Management Courses • Strategic Planning • Succession Planning • Change Management • Advocacy • Understanding the Nonprofit Sector • Social Media & Marketing Courses Our services start with a freeconversation to access your situation; together we then determine what elements of support you may need and provide you with an individualized proposal based on those needs and budget. Through our skilled diagnosis, we ensure that you receive the level of support you need at a price your agency can afford. Our mission is to Unleash the Power of the Nonprofit Community by generating Confidence, Competence and Collaborations! 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

47. PROSPERITY PARTNERS Who We Are:Highly experienced professionals who share a common goal: helping nonprofits achieve success and sustainability in a challenging economy. What We Do:Provide a wide range of services for nonprofit managers, board members, and volunteers including conference presentations, training meetings, on-site workshops, webinars, strategic planning and facilitations sessions. What We Offer:Affordable, personalized consultations and services tailored specifically to help you achieve your organizational goals 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

48. PROSPERITY PARTNERS CAPACITY BUILDING • Nonprofit Tune-Up: Evaluate your organization’s viability and where to focus for improvement • Building Capacity • Public Relations and Community Outreach • Building Collaborations and Community Partnerships • SEO for Nonprofits • Getting Started with Online Video • Getting Started in the Nonprofit Cloud • Online Fundraising:  Beyond the Donate Button FUNDING AND RESOURCE DEVELOPMENT • Grantsmanship 101: Developing Strategies for Successful Proposals • The Write Stuff: An Intensive Workshop on Proposal Preparation • The American Idyll: How to Compete for Funding and Win! • Volunteers: Managing Our Most Valued Resource • Special Projects and Special Events: Dollars or Sense? 501c³ - Taking Nonprofits to the Third Power mbharrington64@hotmail.com

49. Advice and Counsel are Free!501c³ - Taking Nonprofits to the Third PowerMary Beth Harringtonmbharrington64@hotmail.comwww.mbharrington501c3.com972-839-9960