Nonprofit Kit For Dummies. Stan Hutton

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another and help guide the board’s work. When a new member joins the group or when a prospective new member visits, the existing members need to make that person feel comfortable and share with them the collective wisdom they have accumulated.

      Invite a prospective board member to observe at least one board meeting before electing them to membership. That way, the new member gets a chance to see how the board operates, and the current members have an opportunity to size up the new person. Encourage the prospective member to ask questions. Also, if your nonprofit provides programs — such as childcare, a health clinic, or a music school — be sure to give your prospective board members a tour of the facilities before they join.

      

When asking someone to serve on your board, don’t shy away from sharing a clear picture of the work to be done. You may be afraid that your prospect will say no if it seems like too much work. However, keep in mind that being asked is an honor, and contributing good work to a good cause is satisfying. Besides, if the person does decide that you’re asking too much, isn’t it better to know now rather than later?

      

A packet of background materials about the organization and board procedures can help new members get up to speed quickly. The following information is useful for orienting new members:

       Board job descriptions outlining responsibilities and expectations

       Board minutes for the past two or three meetings

       Articles and bylaws

       Conflict-of-interest policy (if you have one)

       Calendar of the organization’s events and scheduled board meetings

       Description of programs

       Financial audit or financial statement

       Form 990 for the past three years

       Mission statement

       Names, addresses, and phone numbers of other board members

       News clippings about the organization

       Organizational plan (if one is available)

      This information may seem like a lot of reading — and it is. But even if a new board member doesn’t read everything from cover to cover, they at least have the reference material when they need it.

      We also suggest that the board president or the executive director meet with a new board member soon after the person begins serving on the board, both to welcome them and to answer any questions.

      As a general rule, we think paid staff shouldn’t be board members. The situation can become too complicated. For example, conflict of interest is always a potential problem, especially when board and staff have different priorities, such as when employees want raises but the board says no.

      Some exceptions to the rule do exist, though. In fact, many nonprofits have at least one staff member on their boards. In start-up nonprofits, for example, founders frequently serve as both board members and staff members. This situation isn’t surprising. Who’s better suited to bring the vision and passion needed to create a new organization than the person who formed it in the first place? In many new nonprofits, of course, paying the staff isn’t even possible; resources are so limited that all work is done on a volunteer basis.

      

If a founder or another staff member serves on the board, we recommend that they not be elected board president because doing so tends to put all responsibility for vision and leadership in a single person’s hands. Sharing that leadership can be an important first step toward broadening an organization’s base of support. In addition, the executive director should always be the buffer between the staff and board. This helps keep things cleaner and less complicated.

      Laws vary by state, but in many cases, having a paid staff member on your board is permitted. For example, under California nonprofit corporation law, as many as 49 percent of the members of a nonprofit board are allowed to receive compensation from the nonprofit. But the standards of governance set forth by the BBB/Wise Giving Alliance say that a board should include no more than a single compensated member (or 10 percent of members for larger boards). Be sure to check out and follow the nonprofit corporation law in your state.

      If you spend any time around nonprofit staff, you’ll probably hear a few complaints about the board of directors. They may say, “I can’t get my board to do anything” or “I can’t get them to face hard decisions or raise money.” Worst of all, you may hear, “I can’t get them to show up to meetings.”

      Motivating the board is an important part of any nonprofit leader’s job. Keeping members well informed so that they can make thoughtful, appropriate recommendations is essential. Sometimes your most important task is gently steering the board’s attention back to the organization’s mission and immediate needs. Whether or not your nonprofit has paid staff, you can take steps to help the board do its work well.

      

The working relationship between the executive director (if you have one) or founder and the board president is a key factor to having an effective board and organization. Ideally, the relationship between these two leaders is one of respect and trust.

      Encouraging commitment from board members

      Getting members of a board to pull their weight sometimes seems like a problem that you can’t solve. Not every board member will contribute equally to the work involved in governing a nonprofit organization. If everyone on your board shows up at every meeting, reads all the materials, studies the financial statements, and contributes to fundraising activities, consider yourself fortunate.

      Here are some techniques you can use to encourage full board member participation:

        Board contracts: Some nonprofits ask new board members to sign an agreement that outlines expectations for board service. The contract may include a commitment to contribute financially to the organization, attend all board meetings, and serve on one or more committees. Although board contracts aren’t legally binding, they provide a clear understanding of responsibilities for each board member. With a board contract, no one can say they didn’t understand what they were getting into when they joined the board.Check out File 3-4 at www.wiley.com/go/nonprofitkitfd6e for a sample board contract.

       Bylaws: Organizational bylaws can state the requirements for board participation. For example, a board member may face dismissal from the board after missing three consecutive board meetings.

       Job descriptions: Just like employees, board members often perform better when they know exactly what they’re supposed to do. Creating job descriptions for officers, committee

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