Presentation Transcript

1. Presented by: BoardSource Building Effective Nonprofit Boards

   Effective Board Leadership

2. Vernetta L. Walker, J.D. Relevant Experience: Senior Governance Consultant and Director of Consulting, BoardSource Associate General Counsel, State Nonprofit Association Foundation Program Officer Practicing Attorney Board Member
3. BoardSource Enables organizations to fulfill their missions by helping them build effective boards Resource for practical information, tools, and best practices, as well as training and leadership development for board members of nonprofit organizations Formerly National Center for Nonprofit Boards
4. What We’ll Cover Today What the board is responsible for and how to accomplish it The three “duties” of board members Practices to become strategically focused and engaged as a board
5. Agenda Board Governance Roles A. Setting Organizational Direction B. Ensuring Necessary Resources C. Providing Oversight II. Individual Duties Leading Trends & Exceptional Practices
6. What is Governance? Bright people using common sense and doing what comes naturally Steering, controlling, and influencing from a position of authority Playing a leading role in continuously answering: (1) Where are we headed? (2) What should we be now and in the near future? (3) How well is our organization performing? All of the above 2 & 3 above
7. I. Board Governance Roles Setting Organizational Direction Ensuring Necessary Resources Providing Oversight
8. A. Setting Organizational Direction Developing and maintaining a focus on: Mission Vision Values Strategic Thinking and Planning
9. Planning Questions What goals must we achieve, and what strategies should we choose in order to meet these needs? How are the next five years likely to be different? What changes do we need to make now to adjust?
10. Identify resources needed: Capable staff leadership Adequate financial resources Positive public image Determine how board members will participate in resource development. B. Ensuring Necessary Resources
11. Board Development Trends From seeking comrades to finding colleagues From constituting boards in large numbers to right-sizing to ensure effectiveness From recruiting based on personal relationships to recruiting selectively based on skills and influence as they relate to strategic focus and direction Informal orientation to formal orientation From no term limits to term limits
12. Identify Rotate Cultivate Evaluate Celebrate Recruit Educate Orient Involve Board Development
13. The Board’s Role in Fundraising Define the mission and plan for the future See that there is a development plan and monitor its progress Create development policies Participate
14. C. Providing Oversight Financial -- establish budget guidelines and oversee financial management; risk management Program -- plan, monitor and evaluate Fiduciary oversight -- compliance, values, conflicts of interest, transparency and accountability
15. Financial Policies and Practices Establish budget guidelines Oversee financial management Ensure that the necessary financial policies are in place On a regular basis, review financial statements, understand what they say, and ask questions to ensure accurate understanding Review audit report and take action as needed Page 11
16. Using Dashboards
17. Oversight - What the Board Should Expect from the Head of School: Strategic information that will assist the board in its governance roles Proposals for policy changes Identification of issues that need board attention No surprises
18. What the Head of School Should Expect from the Board: Timely and clear decisions Board members who are informed and prepared Mutual accountability No micro-managing A board that speaks with one voice No surprises
19. II. Individual Board Member Duties Duty of Care - use the same care that an ordinarily prudent volunteer would exercise in a like position Duty of Loyalty – undivided allegiance when making decisions Duty of Obedience – follow the law and your mission
20. III. Exceptional PracticesThe Source: Twelve Principles of GovernanceThat Power Exceptional Boards Ethos of Transparency Compliance with Integrity Sustaining Resources Results-Oriented Intentional Board Practices Continuous Learning Revitalization Constructive Partnership Mission Driven Strategic Thinking Culture of Inquiry Independent-Mindedness
21. INTENTIONAL BOARD PRACTICESExceptional boards intentionally structure themselves to fulfill essential governance duties and to support organizational priorities. STRUCTURE + MEETINGS Board structure and Size Committees and task forces Agendas
22. Board Meeting Trends Receiving and reviewing vast amounts of information toreceiving targeted and strategic information related to key issues Preparing agendas which reflect past activities to preparing highly structured agendas to address key organizational strategies Meeting on a monthly basis to focus on key strategic issues to meeting less often and on a more ad-hoc basis
23. Effective Board Meetings Agendas focus on strategic issues rather than on administrative detail or listening to reports Consent agendas covering routine issues Background information distributed in advance Regular use of board meeting evaluations Clearly stated objectives for each meeting Regular use of executive sessions (unless prohibited by state “sunshine” laws)
24. Effective Board Meetings Board members are prepared Information is presented clearly Board members have opportunities for asking questions and discussing issues on the agenda The chair keeps the board on task Decisions are made and understood
25. Board Meeting Materials What, how much, why, when Minutes Content and format Reports From committees, CEO Background materials for discussion Educational materials
26. Between Board Meetings Use of technology for information dissemination, discussion, and routine decisions Written guidelines for how and when to use e-mail for board business Seek clarification or additional information as needed before the board meeting
27. Governance Structures Trends Making decisions as a committee of the whole to organizing effective committee structures to recommend policy to the board Focus on standing committees to increasing use of task forces and ad hoc committees
28. Prerequisites for Effective Committees and Task Forces Need a clear charter: What is each group responsible for achieving? By what time? Understand basic role: Advisory to the board or carrying out an organizational task? Accountable to whom? Report appropriately to the board: in writing, stating purpose of the report.
29. Other Ideas to Consider Executive Committee: Severely limit its use or eliminate Establish a Governance Committee Year-round attention to board development Try a zero-based committee structure Periodically consider the organization’s strategic needs and adjust committee and task force structure accordingly
30. What Will You Do Differently?
31. Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has.” Margaret Mead
32. BoardSource 1828 L Street, NW Suite 900 Washington, DC 20036-5104 Phone (202) 452-6262 Web site: www.boardsource.org