Unit 2 Board Basics (it’s more than Showing Up)

1. Community Foundation Basics For Board Members Unit 2 Board Basics(it’s more than Showing Up)

2. Why are YOU a Board Member? • To make a difference in your community or • To build your resume or potential business

3. Indiana Law for Nonprofit Boards • The Board of an Indiana nonprofit corporation typically has ultimate responsibility for all the activities of the organization (IC 23-17-12-1(b). • The Board members must act in good faith, with the care an ordinary prudent person in a like position would exercise and in a manner which the member reasonably believes to be in the best interest of the corporation (IC 23-17-13-1(a).

4. Leadership • A board of a nonprofit corporation represents the stakeholders (the community) similar to how the board in a for-profit company represents the shareholders (owners). • An effective board works in partnership with a good CEO but should be cautious not to defer policy decisions to the CEO. • The board must understand the mission/purpose of the organization and decide on the best ways to fulfill this mission/purpose.

5. What IS Governance? Governance Functions • Determine mission and purpose • Select, support and evaluate CEO • Ensure effective planning • Monitor and strengthen services • Ensure adequate financial resources • Protect assets and provide financial oversight • Build a competent board • Ensure legal and ethical integrity • Enhance the organization’s public standing • Richard Ingram, BoardSource

6. How Is It Different from Management? Management • Implements the policies approved by the Board • Is ‘hands-on’ daily work • Ensures that operations are effective and efficient • Focuses on performance and results • Directs the staff of the organization • Provides Board timely information in concise, relative, or comparative formats

7. Whose Job Is It, Anyway? Which party is responsible for these tasks? Some may be dual functions:

8. Governance and Management ACTCOSS - ACT Council of Social Services, Inc.

9. Board Recruitment Board recruitment and selection is essential for the future growth of the foundation • Getting the right people ‘on the bus’ is essential • Be selective! It’s important work • Candidates should: • Be interviewed by board members prior to invitation to join • Understand they will need to provide time, talent, or treasure (potentially all three) • Be self-motivated and self-disciplined • Be passionate and committed to the mission of the foundation • Job description for board membership is essential

10. Board Orientation Board orientation is not a one-time activity; it’s a continuous process. A community foundation is a unique organization and it may take years for a new recruit to truly understand it. • Plan a permanent and on-going process of orientation. • A series of briefings for new members covering major functions. • Use current or past board members to educate new ones. • Use board activities as a basis for short “educational moments”. • Provide brief written materials as background. • Making the learning fun will increase success.

11. Board Self-Assessment and Evaluation Periodic self-assessment is crucial to success • Allows Board members to better understand their own roles and responsibilities and how well they are carrying them out • Identifies strategies to develop areas that need improvement • Assists the Board in improving its own work so the Board can move to the next level of performance • Develops the Board’s team building skills • Provides a structure for problem solving • Increases accountability within the organization. There are lots of great materials out there to guide this process!

12. Great Board Meetings • CEO and Board chair develop the agenda together • Materials are sent out in a timely manner • Board members review materials before the meeting • Plan for one deep discussion at each meeting • Consent agendas allow for more time to be spent on discussion or education • Provide opportunities for board members to get to know each other • Bring in grantees or donors to allow Board members to hear about the impact of the foundation

13. Committees • Help boards function efficiently • Distribute work among members • Provide opportunities for board members to develop knowledge in particular areas of the foundation • Make full use of the experience and talents of board members • Can be great places for non-board members to become engaged with the foundation • Can be “standing” or “ad hoc” • Need clear direction from board re purpose and goals

14. How the CEO Supports the Board • Sends material well before meetings • Discusses with board and committee chairs progress on their responsibilities • Provides a calendar of activities and meetings • Helps with procedural decisions for board activities: • Board size terms, nominating procedures, skills needed, demographics • Committee structure, selection, job descriptions and responsibilities

15. What Should Your CEO Expect from You? How much of your board meeting is discussion vs reports & votes? • Make time for foundation work -- a priority activity • Show up prepared • Share your thoughts and ideas • Begin conversations with friends, colleagues and family about the foundation’s work • Be a role model – give, participate, care

16. Activities of an Effective Board Chair toBuild the Team Relationship • Works individually with board members on participation, support and leadership • Assures effective nominating process and execution • Motivates the board to achieve • Leads and facilitates board discussions so all are heard and participate • Ensures board evaluates itself • Annually evaluates CEO • Attends to board absentees in a timely manner Is your CEO evaluation process collaborative?

17. What Do The Triple A Roles Include? The Ambassador • A role everyone plays in some way. • Has a key role in the cultivation of prospects and stewardship of donors. • Is well coached in the message. • Masters the “elevator speech or question”. • Is a catalyst for donor renewal.

18. What Do The Triple A Roles Include? The Advocate • Is strategic in sharing information about the organization in the car pool or on the golf course. • May strongly advocate with city officials, foundations and other organizations with which you are partnering. • Are informed about the reasons for support and how they fit in the strategic plan. • Well coached on handling questions.

19. What Do The Triple A Roles Include? The ASKER HAS already made their own gift to the foundation • Enjoys sharing their enthusiasm for the foundation and asking for investment. • “Matched” with prospective donors for maximum possibility of success. • Teamed with another board “Asker” or staff leader. • Benefits from the work of the Ambassadors and Advocates.

20. How Can You Tell if The Board is Leading? • People feel significant • The board is a community – a team • Board members want to learn, ask questions, engage in discussion • The work is stimulating, challenging, and fun • Meetings do not involve operational issues but do focus on vision, ideas and plans • The board acts with courage, clarity, competence and coachability and is governed by character* *From a good short book on leadership by Andy Stanley called “Next Generation Leader”

21. Board Member Survey • Board Self Assessment • The Effective Board Member

22. When was the last time your board had really great discussion about the foundation’s work? Are you doing a good job recruiting and orienting new members? What could you do better? What ideas do you have to improve your board meetings?