Nonprofit Kit For Dummies. Stan Hutton
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Check out File 3-2 at
www.wiley.com/go/nonprofitkitfd6e
for a sample grid for planning board recruitment.
Where do you find new board members? Start with your organization’s address book. Whom do you know who may make a good member and be willing to serve? Who benefits from your agency’s work? Who are your agency’s neighbors? Who is actively involved as a volunteer for your agency? Some cities have nonprofit support organizations that can help in this regard. Consider asking your funders for suggestions and look at former board members of other high-functioning nonprofit organizations with similar missions.
Even if you don’t specify board terms, continuously recruiting new board members is important. As time passes, board members’ lives may change in ways that draw them away from your organization. Many nonprofit organizations lose vitality when their boards don’t refresh themselves with new members.
Big boards or little boards
Opinions differ about the ideal number of board members. One school of thought holds that big boards are better because the members can divide work among more people, consider more diverse viewpoints, and reach into the community more extensively. Other people say that smaller boards are better because maintaining a working relationship with a smaller group is easier and decision-making is better because the board has to consider fewer opinions. Those who support small boards also say that board members can easily become invisible in a large group, meaning that no one will notice if they fail to do their share of the work.
In our opinion, there is no single correct answer to the board-size question. According to a 2010 BoardSource survey of its members, the average size was 16 members and the median size was 15 members. Nonprofits vary widely in size, function, and type, so what works for one nonprofit may not work for another. Nonprofit board size is truly a case where the phrase one-size-fits-all doesn’t apply.
Consider these points when setting your board’s size:
Start-up nonprofits tend to have smaller boards than more mature organizations. Start-up budgets tend to be smaller, and building a board of directors takes time. State laws generally specify the minimum size required (often, three members).
Boards that are actively engaged in fundraising for major gifts and special events tend to be larger because both fundraising techniques are fueled by personal contacts and friendships. The more board members you have, the more personalized invitations you can send. Some large cultural institutions have 50 board members or more.
Boards that govern nonprofits funded mostly by grants and contracts tend to have fewer members, perhaps an average of 10 to 16 members. Board members in these nonprofits usually have fewer fundraising responsibilities for the organization and frequently are representatives of the communities or clients served. They also may have professional experience in the types of service provided by the nonprofit.
Choosing officers and committees
Typical officer positions of most nonprofit boards include president, vice president, secretary, and treasurer. Sometimes the positions of secretary and treasurer are combined into one office. Your state laws may specify which officers are required. Seniority on the board, professional expertise, and skills in negotiating with and listening to others are common traits sought in a board’s leaders. Ultimately, however, the board of directors chooses the officers. They’re usually elected to 2-year terms. The following list outlines the common responsibilities of board officers:
President (or chairperson): Presides at board meetings, appoints committee chairpersons, works closely with the executive director to guide the organization, and acts as a public spokesperson for the organization (but also may assign this responsibility to the executive director)
Vice-president (or vice-chairperson): Presides at board meetings in the president’s absence and serves as a committee chairperson as appointed by the president
Secretary: Maintains the organization’s records, records minutes at board meetings, and distributes minutes and announcements of upcoming meetings to board members
Treasurer: Oversees the organization’s financial aspects, makes regular financial reports to the board, and sometimes serves as chairperson of the board finance committee
Check out File 3-3 atwww.wiley.com/go/nonprofitkitfd6e
for more-detailed job descriptions you can use.
If the board has standing, or permanent, committees, the board president may appoint committee chairpersons, or they may be appointed by the board. Typical standing committees are finance, development or fundraising, program, and nominating committees. Other possible committees that may be either standing or ad hoc — a temporary committee organized to deal with time-limited projects — are planning, executive search, investment, special events, and facilities. The following list outlines the responsibilities of common standing committees:
Development: Sets fundraising goals and plans fundraising activities for the organization in consultation with the board president and executive director
Finance: Assists the treasurer in overseeing financial reports and official tax filings, making budgets, and maintaining relationship with professional accounting firm, if applicable
Nominating: Recruits new board members and nominates board officers for election to their positions
Program: Oversees and advises on the program activities of the organization
Board committees make regular reports to the full board about the organization’s activities in their particular areas. Board officer terms and the number and type of standing committees should be written into the organization’s bylaws.
If your organization is large enough to conduct an annual financial audit, your board may be legally required to appoint an audit committee. Be sure to check the laws in your state. You may not be permitted to include the board chair or treasurer on the audit committee.
Executive committees are standard groups on some larger boards of directors. Usually the members of the executive committee are the officers of the board, but the committee sometimes also includes the chairs of the standing committees. The executive committee may hold regular meetings to set the agenda for the meetings of the full board and to advise the board president, or it may come together on an as-needed basis. Sometimes an organization’s bylaws empower the executive committee to make decisions on behalf of the full board in an emergency or in other special circumstances.
Introducing new and prospective members to the board and the organization
Boards of directors exhibit all the characteristics of small groups, and maybe even families: Friendships develop, alliances form, and disagreements occur. Over time, the group