Board Development

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Board Development

• Lindy Turner, Coordinator
• Clinch-Powell RCD/EC

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For Information

• Third of of ten sessions on Building a Better
  Nonprofit Organization
• Download presentation from website
• Go to www.clinchpowell.net
• Go to Whats New
• Click Build a Better Nonprofit

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Brief Review

• First Session
• Nonprofit Basics
• Second Session
• How to Start a NPO

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Startup Activities of a Board

• Approve the mission statement
• Approve Charter
• Approve Bylaws
• Select Officers
• Approve rough plan and budget

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Yearly Board Operations Activities

• Regular board meetings
• Board self-evaluation
• Evaluating staff
• Review/update personnel policies

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Yearly Board Operations Activities (cont.)

• Conduct strategic planning
• Recruit new board members
• Hold annual meeting
• Develop annual budget
• Fundraising

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Purpose of Board Meetings

• Hear important discussion and make important
  decisions to meet their responsibilities as a
  Board

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The Board is the Governing Body

• Board of Directors oversees the operations
• Ensures effectiveness
• Manages resources
• Assesses its own performance
• Board is directly accountable for actions of the
  organization

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The Basic Responsibilities of Nonprofit Boards

• Determine the mission and purposes
• Select the chief executive
• Support the chief executive and asses performance

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• Ensure effective organizational planning
• Ensure adequate resources
• Manage resources effectively

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• Determine monitor, and strengthen the
  organizations programs and services
• Enhance the organizations public standing

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• Ensure legal and ethical integrity and maintain
  accountability
• Recruit and orient new board members and assess
  board performance

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Legal Responsibilities of Nonprofit Boards

• Duty of Care
• Duty of Loyalty
• Duty of Obedience

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Duty of Care

• Describes the level of competence that is
  expected of a board member
• care that an ordinarily prudent person would
  exercises in a like position and under similar
  circumstances

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Duty of Loyalty

• Standard of faithfulness
• Undivided allegiance when making decisions
  affecting the organization

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Duty of Obedience

• Being faithful to the organizations mission
• Actions are consistent with the central goals of
  the organization

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Board Structure and Operations

• Written job descriptions
• Schedule of meetings
• Clear and thorough information materials
• Complete and accurate record of minutes

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• Brief and focused meetings
• Service of committees
• Acknowledge member accomplishments

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Board Size

• Decision depends on many things
• Large enough to do the work
• Small enough to manage

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Standing Committees to Consider

• Executive Committee
• Nominating Committee
• Finance Committee

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• Audit Committee
• Strategic Planning Committee
• Personnel Committee
• Development Committee

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Three Levels of Ethical Behavior

• Obeying the law
• Decisions where the right action is clear, but
  one its tempted to take a different course
• Decisions that require a choice among competing
  options

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Conflict of Interest Policy

• Full Disclosure
• Abstention from discussion and voting
• Staff member abstention from decision-making

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Examples of Conflict of Interest

• Board members printing firm prints annual report
  although no other bids were obtained
• Board member serves on two boards and finds
  him/herself approaching the same donors on behalf
  of both organizations

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• Staff receives honorarium for conducting a
  workshop for another group in the organizations
  field of interest

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Questions?
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Next Session

• Board and Committee Members that Work
• Monday, March 11
• 600 pm

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Building a Better Nonprofit Series

• 1. Beginning Basics
• 2. How to Start a NPO
• 3. Developing a Strong Board
• 4. Board and Committee Members that Work
• 5. Gaining Tax Exempt Status

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Building a Better Nonprofit Series

• 6. Reporting Requirements
• 7. Fundraising Readiness
• 8. Grants I - Seeking Funds
• 9. Grants II - Proposal Writing
• 10. Grants III - Managing Grant Contracts

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Chris Osborn, Tele-Democracy Project
Manager chris_at_clinchpowell.org Lindy Turner,
Coordinator lindy_at_clinchpowell.org Clinch-Powell
Resource Conservation Development Clinch-Powell
Enterprise Community 865/828-5927www.clinchpowel
l.net