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Good Works CONNECT Building Excep8onal Boards and Inspiring Board Service August 18, 2015 1
Good Works CONNECT Building Excep8onal Boards and
Inspiring Board Service August 18, 2015
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Today’s Presenta8on
Ø Why Boards Fail
Ø Board Design and Structure
Ø Recruitment Strategies
Ø Keys to Success
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Why Nonprofit Boards Fail
What Can Go Wrong? • Failing to Understand Fiduciary DuAes and
provide effecAve oversight • Micro-‐managing Staff • Failure to CulAvate Board Diversity • Failing to Educate and MoAvate Board Members
• Failing to Hold Board Members Accountable
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Why Nonprofit Boards Fail
What Can Go Wrong? • Failing to Understand Fiduciary DuAes and
provide effecAve oversight
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Why Nonprofit Boards Fail
What Can Go Wrong? • Micro-‐managing Staff
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Why Nonprofit Boards Fail
What Can Go Wrong? • Failure to CulAvate Board Diversity
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Why Nonprofit Boards Fail
What Can Go Wrong? “…The Board of Directors is evolving from
a founding, working board to a governing board composed of diverse individuals who will help ensure the organizaAon is posiAoned for exponenAal growth in furthering our mission…”
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Why Nonprofit Boards Fail
What Can Go Wrong? • Failing to Educate and MoAvate Board
Members
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Why Nonprofit Boards Fail
What Can Go Wrong? • Failing to Hold Board Members Accountable
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Why Nonprofit Boards Fail
What Can Go Wrong?
Result: Lack of Board Engagement
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Why Nonprofit Boards Fail
What Can Go Wrong?
• 36% of CEO’s – “board members are prepared for meeAngs”
• 19% of CEO’s -‐ “the majority of board members are engaged”
• 28% of board chairs – “board members parAcipate in discussion”
Source: Leading with Intent, Data AT A Glance © 2015 BoardSource
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Board Design and Structure What’s the Purpose?
• To align strategic imperaAves • To provide diversity • RelaAonship building
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Board Design and Structure Why is this Important?
• Clarity of terms and membership
• EffecAvely recruit
• Builds consensus
• Commi`ee structure
• OpAmal number of members
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Board Design and Structure
Governance
• Fiscal accountability • Strategic Planning • Sustainability • Support the chief execuAve
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Board Design and Structure
Officers: • Board Chair • Vice Chair • Treasurer • Secretary
Board Member Committees:
• Chair • Vice Chair • Committee Member
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Board Design and Structure
Board Chair Executive Director
Executive Committee
Advisory Board
Committee
Board of Directors
Committee Committee
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Board Design and Structure
Board Prac8ces
• Board Size: average 15
• Terms: most are 3-‐years; limit to 2-‐3 consecuAve terms
• 12% include the CEO as a voAng member
• 73% of CEOs – we have the right board members
Source: Leading with Intent, Data AT A Glance © 2015 BoardSource
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Board Design and Structure
Board Prac8ces Most Boards: • Revise bylaws at least every 5 years
• Conduct wri`en board assessments at least every 3 years (51%)
• Have a wri`en conflict of interest policy and whistle blower policy (88-‐97%)
• Share the CEO’s evaluaAon with the full board (75%)
Source: Leading with Intent, Data AT A Glance © 2015 BoardSource
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Board Design and Structure
Board Prac8ces
Succession: 12% have an effecAve officer succession process
Giving: • 85% of board members donate
• 60% have 100% board giving
Source: Leading with Intent, Data AT A Glance © 2015 BoardSource
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Board Design and Structure
Sample Governance CommiQee Responsibili8es
• New board member orientaAon
• Board performance evaluaAon process
• Board member recruitment
• Maintains Board policies
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Recruitment Strategies Why People Join Nonprofit Boards
• Drawn to the mission
• To use their talents • RelaAonships
• To develop knowledge/skills
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Recruitment Strategies Engaging and Retaining High Quality Board Members
• Make their experience compelling
• Build trust and board kinship
• Create conversaAons
• Remove any ambiguity
• Build an intenAonal presence
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Recruitment Strategies QualiAes/Experience/ExperAse
Quali8es/Experience Required for All Board Members: • Business/Management • Governance experience • Networked/socially connected • Personal engagement ownership • Commitment to the mission • Passion for growing the business • Comfort in fundraising role • Professional maturity Func8onal Exper8se Needed for Individual Board Members: • Financial/AccounAng • Public RelaAons/MarkeAng • Fundraising/donor culAvaAon • Strategic Planning • Legal • Entrepreneurial
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Recruitment Strategies CreaAng a pipeline for young board members
• Greater Involvement in Community/Mission
• Skills Development
• Leadership Development
• Network OpportuniAes
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Recruitment Strategies CreaAng a pipeline for young board members
• Create a brand and great content • Get Millennial ready
• Define the skills
• Make it fun
• Maximize your Millennial-‐finding channels
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Keys To Success
#1 The board chair must be a strong leader
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Keys to Success
#2 Board Leadership
• Focus on strategic direcAon
• Drive accountability
• Support and evaluate the Chief ExecuAve • Conduct self assessments
• Reach out to unbiased sources 27
Keys To Success
#3 Governance
• Clarify division of roles
• Define decision making authority
• Succession Planning
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Keys to Success
#4 Commit to Board Engagement
• Communicate clear expectaAons • Provide board member orientaAon • Provide board member training • Make board work rewarding and fun!
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What Do You Think?
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Final Thought
“Never doubt that a small group of thoughnul, commi`ed ciAzens can change the world. Indeed, it is the only thing that ever has.” -‐Margaret Mead
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