BoardofDirectorsRoles,Responsibilities

and501(c)(3)Operations

BillMieleADA

OrganizationandDevelopment

WashingtonSecretaryofStateOffice: sos.wa.gov

* WashingtonNonprofitHandbook*  CharityandNonprofitBoardServiceinWAState*  NonprofitFinanceandAccountingforBoardMembers*  StatewideNonprofitResourceDirectory-501Commons

Resources

LittleLeagueInternationalOnLine:littleleague.org

*  LittleLeagueOperatingPolicies*  SampleLittleLeagueConstitution

EachCharteredLittleLeague:*  LeagueConstitution*  LeagueBylaws

Resources

LittleLeague-ThemanagementofthepropertyandaffairsofthelocalleagueshallbevestedintheBoardofDirectors.WAState-Theboardofdirectorsisresponsibleforsettingoverallprioritiesandensuringthatresourcesareusedwiselyinpursuitoftheorganization’smission.

RoleoftheBoard

“Acorporationexercisesitspowersthroughresolutionsandactsoftheboard.Generally,theboarddelegatestheday-to-dayresponsibilitiesofoperatingthecorporationtopaidorvolunteerstaffmembers.”Directorsmaynotactindividually.

TheRoleoftheBoard

Officersoperatetheorganizationonadaytodaybasis.President-”Presidesatleaguemeetingsandassumesfullresponsibilityfortheoperationofthelocalleague.”…...OtherofficersprimarilysupervisedbythePresident..Officersmayactindividually**

TheRoleofOfficers

Ideally,boardmembersshouldbepeoplewhoareinterestedingoverningtheorganizationnotinhands-onvolunteeractivities,andespecially,notinamanagementrole.

501Commons

AnIntrototheRoleoftheBoardFrom501Commons-BestPractices

LittleLeague:Officersareselectedfromamongelectedboardmembers.Allofficersmustbeboardmembers.

MostNonprofits:Boardmembersarenotofficersandofficersarenotboardmembers.

LittleLeagueBoardsVersus

MostNonprofitBoards

*  Officer/BoardMemberroleconfusion

*  Oversightfallsbythewayside-Finance!

*  Meetingsbecomegroupmanagement

*  LittleLeague/501crequirementsarenotmet

*  Dysfunctionalbehaviorerupts

WhatcangoWrong?

*  ChildSafety

*  SoundFinances

*  GameIntegrity

*  LeagueGrowth

TheBigFourforBoards

AttheFirstTwoBODMeetings:

*  ReviewBODandeachDirector’sresponsibility*  ReviewOfficerjobdescriptions*  AppointFinance/AuditandNominatingCommittee*  DevelopBODoversightlistandreviewdates*  DirectorscompleteBackgroundCheckandConflictofInterestDisclosureforms*  Reviewandupdategoverningdocuments

OrganizingforaSuccessfulBoard

Thinklikeyourunacorporation—YouDo!* EmphasizeSoundFinance

1.  BestPracticesFinancialControls2.  NoLeagueDebitandCreditCards3.  MonthlyAudits-AuditCommittee4.  AnnualAudit-IndependentCPA5.  FederalForm990-

SomeKeystoSuccessfulLeagueOperations

*  Oneofficerposition=Oneperson..No“Co’s”…

*  PayattentiontoRiskManagement*  Becarefulhowyousetthequorumformembermeetings.*  Smallerboardsworkbetter.*  Takeselectionoffutureboardmembersseriously.

*  Takeactionondirectors/officerswhoarenotperforming.*  Donotaccommodatedisruptivebehavior.

SomekeystoSuccessfulLeagueOperations

BeforetheMeeting:*  Decidewhowillattendthemeeting

*  Setobjectivesformeetingandeachtopic

*  Specificagendawithtimelimitspertopic

*  Distributematerialsforreview/action*  Assignpreparationworkandpresentations

BetterBoardMeetings

WrittenAgenda:*  SeparateBODbusinessfromOfficerbusiness

*  ListBODoversightitemsforthemeeting

*  MonthlyFinancialreport*  BriefBODtraining/informationsessiononleague

operations

BetterBoardMeetings

TheMeeting:*  StayOnTopic*  StayFocusedonObjectives*  StayOnTime*  Shutdown‘Monopolizers’*  Stateactionforeachtopicdiscussed

BetterBoardMeetings

AftertheMeeting:DetailedMinutes*  Attendance*  Resultsofallvotes*  ResultsofBODreviewitems*  ActionsanddecisionstheBoard*  Directionsissuedtoofficers*  Itemsforaction/follow-up

BetterBoardMeetings

BoardofDirectorsNutsandBolts

“BoardmembersofWashingtonstatenonprofitorganizationsmustdischargetheirdutiesingoodfaith…...............andwiththecarethatanordinarilyprudentpersoninalikepositionwouldexerciseundersimilarcircumstances”

(CharityandNonprofitBoardServiceinWAState-QuickGuide)

DutiesandResponsibilitiesofEachBoardMember

Generally,eachboardmemberhasthreeduties:*  DutyofCare*  DutyofLoyalty*  DutyofObedience

DutiesandResponsibilitiesofEachBoardMember

Exercisereasonablecarewhenheorshemakesadecisionasastewardoftheorganization.*  ActivelyParticipateinmeetingsoftheboard*  Beinformedonthebooks,recordsandoperations*  Protectassets-protect,preserve,investandmanagethecorporation’s

assetsconsistentwiththeorganization’smissionandlegalrequirements.*  Investigatewarningsorreportsofofficeroremployeetheftor

mismanagement.

DutyofCare

Aboardmembermustgiveundividedallegiancewhenmakingdecisionsaffectingtheorganization.Eachdirectormust:*  ConflictofInterest-Avoidactualandpotentialconflictsofinterest.

*  Confidentiality-Treatallinformationtheyreceiveorhaveaccessto,includingboardconversationsanddeliberations,asconfidential.

*  CorporateOpportunity-Notdivertorganizationopportunitiesfor

personalgain.*  LoansandSelf-dealing-nonprofitcorporationsmaynotmakealoantoa

boardmemberortheboardmember’sfamilymembers.Directorsmaynothaveanyadvantagesnotavailabletomembers.

DutyofLoyalty

EachDirectormust:

*  ComplywiththeOrganization’sMission*  ComplywiththeLaw

*  ComplywithGoverningDocuments

DutyofObedience

BestPracticesRecommendation-aqualifiedcandidatefortheboardisanindividualwho:*  Isamemberofyourleague*  Isnotengagedinthepromotionoroperationofanyotherbaseballor

softballprogram*  Isfullyappraisedofthedutiesandresponsibilitiesofadirector.*  Iswillingtosignaboardofdirectorscommitmentletter*  Isabletopassacriminalbackgroundcheck*  Acknowledgesyourleague’sconflictofinterestpolicyinwritingandmakes

writtendisclosureofallpotentialconflictsofinterest.

BoardMemberQualifications

Framework*  TheBoardestablishestheframeworkfortheorganizationandcreatesandupdatesthemission

statement.*  Defineswhatbenefits(orendresults)theorganizationisprovidingtowhomandwhatitwillcostto

deliverthem?*  Determineshoworganizationalperformancewillbemeasured.Direction*  TheBoardsetsthedirectionfortheorganization.*  Setsgoalsandapprovesandmonitorsthestrategicplan*  Developsorganizationalpolicies,includingthepoliciesthatgovernhowtheboardwilloperate.

Accountability*  TheBoardofDirectorsisresponsibleforthebehaviourandperformanceofboardmembersandthe

executive.*  Establishesthecodeofethicsfortheboardandorganization,includingpoliciesrelatedtoprivate

inurementandconflictofinterest,andsetsthetonefororganizationalbehavior.*  Monitorsfinancialandoperationalperformance.*  Servesasthelastcourtofappealwithintheorganization.*  Selectsanauditorandreceivestheauditreport.

GoodWillandSupport*  TheBoardofDirectorsrepresentstheorganizationtotheoutsideworldandprovidessupportand

counseltotheexecutivedirector

Pointsfrom501Commons

Somepointsfrom501Commons

RoleoftheBoardBestPractices