In this 1-hour webinar hosted by CharityNet USA, we review the 20 best practices for nonprofit board of directors. For more information on nonprofit startup, visit: charitynetusa.com/nonprofit_startup.php
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Nonprofit Board of Directors Best Practices
1. Key Speaker
Melanie Swift M.N.M
Director of Nonprofit Services
CharityNet USA
Moderator
Nicole Roach
Marketing Coordinator
CharityNet USA
2. • CharityNet USA: A “One-stop” resource
center for nonprofit organizations
nationwide!
• Key Speaker: Melanie Swift
• Questions
• Recorded Webinar Available At:
http://www.charitynetusa.com/webinararchive/index.php
3. • About Boards of Directors (BoD)
• Twenty Best Practices for BoD
• Conclusion
• Questions
4. Boards of Directors have many
responsibilities and fill various roles:
– Such as
• Provide leadership as a governing body
• Approve annual budgets
• Ensure sufficient available financial resources
• Fulfill legal obligations
• Responsible to stakeholders for organizations’
achievements and shortcomings
5. • Generally elected
• Roles, responsibilities,
and powers are usually
outlined in bylaws
• Members may have diverse backgrounds,
although usually share common goals
6. Governance Hat
Worn only when in a properly called meeting
Volunteer Hat
Worn when advising the Executive Director,
fundraising, and helping staff
Implementer Hat
Seldom worn, as program implementation is
usually the responsibility of staff
7. The following practices are general guidelines,
and should be tailored to meet your specific
needs.
Organization characteristics to consider include:
• Size
• Location
• Industry
• Population served
• 501 status
• Business mindedness
• Other unique factors
8.
9. 20. Stay Mission Driven
Shape and uphold the mission; articulate a
compelling vision
Maintain consistency with mission, vision, values
in decisions, policies, and actions
“Keep the Dream Alive”
19. Strategic Thinking
Allocate time to what matters most
Continuously monitor the environment to hone
direction
10. 18. Develop a culture of transparency,
consistency, and accountability.
– Ensure that donors, stakeholders, and interested
members of the public have access to
appropriate and accurate information
regarding finances, operations, and results.
11. 17. Be Results-Oriented
Continuously measure progress toward
mission fulfillment
Evaluate efficiency, effectiveness, and
impact of major programs and services
16. Remain Independent
Mainly volunteer
Lack of relationships
12. 15. Plan for Revitalization
Understand the
importance of fresh
perspectives
Energize the board
through planned
turnover and thoughtful,
continuous recruitment
13. 14. Develop a Conflict of Interest policy
– Be sure members abstain from voting when
there is a potential conflict of interest
– Ensure arm’s length negotiations
13. Develop and adopt a Whistle Blower policy
– It’s important for employees to know they will be
protected if/when they protect the organization
14. 12. Boards of Directors should meet at least
once per quarter.
11. Documentation is crucial
Meetings, decisions, presentations, and
so forth should be documented
appropriately
Examples of documents:
minutes, receipts, and
handbooks
15. 10. Charity should begin at the office
– As leaders of the organization, members should
make it a point to donate their time and
money to their organization
– 100% Contributing Boards ideal
9. Fundraising Accountability
– Members often raise funds and garner
resources
• Often have an extensive network
• Accountable to their word and for their efforts
16. 8. Sustain Resources
Link bold visions and ambitious plans to
financial support
Approve activities that can be realistically
financed with existing or attainable
resources
17. 7. Always have financials audited by an
outside organization.
Change auditors/auditing organization
every five years.
18. 6. Board members should be aware of current
laws and policies
This will help keep the organization out of
legal trouble
5. Ensure Compliance
As part of ongoing strategic planning, be
aware of all federal, state, and local
compliance issues
19. 4. The Board of Directors should
comply with the Duty of
Loyalty
– In other words, Boards of
Directors needs to look out
for the best interest of the
organization
– Never use information or
resources obtained as a
member of the board for
personal gain
20. 3. Fulfill the SOX Act audit standards
– The Sarbanes-Oxley Act of 2002 is mandatory.
– Focus on, and tailor appropriate organizational
response to meet SOX requirements.
– Created to protect against accounting crimes
by outlining new standards for accountability.
**For more information, please see: www.soxlaw.com
21. 2. The Board of Directors and the organization’s
Executive Director should have a strong
working relationship.
22. 1. Continuously
review your Board
of Directors’ best
practices and
board
effectiveness
23. • Members should be chosen carefully, and
understand their roles and responsibilities
• It is crucial for members to follow legal
regulations and work for their organization’s
success, even when it means making
difficult decisions
• Every organization should have a formal
Board Policy Manual