The ASU Lodestar Center 18 th Annual Nonprofit Conference On Sustainability Strategies

1. The ASU Lodestar Center18th Annual Nonprofit Conference On Sustainability Strategies Your Board: Just a Monthly Meeting Group? Or Your Best Source for Great Ideas? October 14, 2010 Clyde W. Kunz, CFRE Pamela Doherty, CFRE

2. Overview • Your Current Board …Questionnaire • Effects of the Recession • Thinking Differently • Recruitment, Ongoing Board Development • Sharing of Business Acumen • Strategic Discussion • UBIT • Your Current Board - Discussion • Resources

3. Getting Started • Questionnaire • Why do we have Boards?

4. “The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday’s logic.” Peter Drucker

5. “The Great Recession” • Investors scared – DJIA dropped 49% • Homeowners frightened – Phoenix home values fell 48% • Unemployment high / prolonged (9.6% or 14.9 million Americans) • Private donations down 3.2% in 2009 and 2.4% in 2008

6. “The Great Recession” • Only 35% of NPOs cut annual budgets from 2008 to 2009 • NPOs in US: • 1M in 2005 • 1.4M at the start of recession • 1.57M today • Growth in demand for NPO services

7. “The Great Recession” • The recession and your Board: • Recruitment − Board meetings • Composition − Board focus • Innovation? • New/different threats/opportunities?

8. “Nothing is less productive than to make more efficient what should not be done at all.” Peter Drucker

9. Thinking Differently • Targeted Board recruitment • Ongoing Board development • Sharing business acumen • Promote ongoing discussion re revenue-generation

10. Targeted Recruitment • Systematic identification and cultivation • Expanded levels of “diversification” • Board composition

11. Board Development • Supported by: • Systematic process • Clear expectations • Job descriptions • Continuing ed./tools • Accountability • Communication • Respect for time • Ongoing appreciation • Don’t forget retention • How is this different from pre-recession?

12. Business Acumen • Current needs demand different skills • Individuals with new revenue ideas • Recruiting • Avoiding recruiting pitfalls

13. Board Discussion of Ideas • “Revenue idea-generating” part of job description • Supported/encouraged by committee structure • Processes for decision-making and evaluation

14. Board Discussion of Ideas • Strategic Discussion • Planning and preparation • Clear objectives / desired outcomes • Methodologies for board & committee meetings • “Culture of curiosity” • Time!

15. The Question of UBIT • Income from a trade or business • Regularly carried on • Not substantially related to the organization’s exempt purpose • Generates $1,000+ gross income: form 990-T

16. The Question of UBIT • Not necessarily a bad thing! • Income taxable at corporate rates • If UBI becomes “substantial” compared to exempt-function activities, could jeopardize non-profit status

17. The Question of UBIT • Exemptions: • Businesses selling donated goods • Businesses using primarily volunteer labor • Businesses that provide a service to the NPO’s ‘members’ • Additional Information: www.nonprofitexpert.com

18. Questionnaire • Would you like to be able to change any answers? • What are the first steps you need to take to make those changes? • Who else needs to be brought into the discussion? • Does that discussion require information from outside the organization?

19. Resources • Web-based resources for Boards • Trainings through the Non-profit Management Institute • Board self-assessments • Focus Retreats / workshops on revenue-generation

20. (520) 449-3967 Pamela@pameladoherty.com Thank You! (520) 977-4019 Kunz@cox.net Presentation Handouts at www.ClydeKunz.com