Presenting: Board Orientation
YourOrganization
Date of OrientationLocation of Orientation
Section 1
Overview of theNonprofit Sector
Overview of the Nonprofit Sector
America’s Three SectorsPrivate Sector
• Business and industry
Public Sector• Government and public educational systems
Nonprofit Sector• Charitable organizations, membership
associations, professional societies
Overview of the Nonprofit Sector
Who Is the Nonprofit Sector?• Homeless shelters and soup kitchens
• Colleges and universities
• Support and counseling services
• Hospitals and community health centers
• Advocacy and public education groups
• Membership associations
• Environmental and conservation groups
Overview of the Nonprofit Sector
Who Is the Nonprofit Sector? (cont.)• Performing arts and fine arts organizations
• Churches, temples, and mosques
• Credit unions
• Veterans and service clubs
• Sororities and fraternities
Overview of the Nonprofit Sector
Types of NonprofitsCharities (Section 501(c)(3) of IRS tax code)
• Special Olympics, YMCA, Metropolitan Museum of Art
Professional and Trade Associations (501(c)(6))• American Dental Association, AARP, National PTA
National Social Welfare Organizations (501(c)(4))
• NAACP, National Organization for Women, Sierra Club
Social Organizations (501(c)(7))• Swimming clubs, garden clubs, alumni associations
Overview of the Nonprofit Sector
What Is the Nonprofit Sector?• Approximately 1.6 million nonprofit organizations
in the U.S.
• In 2003, the total assets in charities totaled more than $1.76 trillion
• One in 12 Americans works for a nonprofit
• About 30 percent of Americans volunteer for nonprofits
• Combined contributions of $260 billion in 2005For more information on the nonprofit sector,
visit the BoardSource Web site at www.boardsource.org.
Section 2
About theOrganization
About the Organization
MissionYour mission statement here.
About the Organization
VisionYour vision statement here.
About the Organization
History1990: Founded by John Jordan. First Literacy
Action Center opened in Mayfield.
1995: Served 200 clients. Employed 4 full-time staff and 5 volunteers.
2000: Juniperville site opened.
2002: Strategic plan adopted for years 2003 - 2007.
2003: 4 sites in operation.
2005: Serves more than 1,200 clients annually.15 full-time staff, 4 part-time staff, 30
volunteers.
(Sample)
About the Organization
Programs and ServicesTeen Literacy Now Initiative
Goal: To Improve the Reading Comprehension Skills of 14 – 18 Year-Olds
In 200X:• 5,000 brochures distributed
• 200 teens received free counseling
• 12 teen literacy workshops conducted in 5 area high schools to more than 900 students
(Sample)
About the Organization(Sample)
FinancesSources of Income, 200X:
• 50% state and county grants
• 25% foundation grants
• 25% individual contributions
Major Funders Include:• XYZ Community Foundation
• The ABC Fund
Current Budget: $4.5 Million
About the Organization
FundraisingThree-Year, $4 Million Endowment
Campaign Launched in 200X• 60% has been raised to meet goal
Fundraising Goals for 200Y Are $XXBoard Members Are Required to:
• Purchase tickets to annual fundraising dinner each March
• Make a personal annual contribution
• Provide names of potential contributors
(Sample)
About the Organization
Strategic PlanGOAL: To increase the organization’s
visibility in the business community.• STRATEGY: Promote literacy volunteerism among
corporate employees through a targeted public education program.
GOAL: To increase reading skills and comprehension levels in students ages 8 – 12.
• STRATEGY: Work with school districts to develop after-school reading programs for students K – 8.
(Sample)
About the Organization
StructureLiteracy Action Center Senior Staff
(Sample)
Pat OlsenD irec to r o f D eve lop m en t
Tom Brow nC h ie f F in an c ia l O ffice r
Rebecca SanchezL ite racy E d u ca tion M an ag er
Sandra Sm ithO u treach C oord in a to r
Stephanie W rightV olu n teer S ervices M an ag er
John W ongP rog ram s D irec to r
Joan LancasterF ac ilit ies M an ag er
Jane HillC h ie f E xecu tive O ffice r
About the Organization
RelationshipsSites for After School Programs
• South View Junior High School
• Perrysburg Middle School
Corporate Volunteer Sponsors• The Daily Gazette
• Spring Valley Bank
• Main Street Booksellers
(Sample)
Section 3
Aboutthe Board
About the Board
Board StructureBoard Officers
• Frank Navaro, board chair (Class of 2008)
• Stella Jarvis, vice chair (Class of 2006)
• Gretta Smith, treasurer (Class of 2006)
• Jeffrey Marx, secretary (Class of 2007)
(Sample)
About the Board
Board StructureCommittees
• Executive committee, Stella Jarvis, chair
• Governance committee, Jan Johnson, chair
• Finance committee, Charlie Preston, chair
(Sample)
About the Board
Board StructureTask Forces
• Annual fundraising dinner, Jeffrey Marx, chair
• CEO selection, Gretta Smith, chair
(Sample)
About the Board
Board OperationsBoard Composition and Recruitment
• 15 board members
• Three-year terms
• Two consecutive term maximum service
• Governance committee leads recruitment and nominating process
(Sample)
About the Board
Board Consultants• Legal counsel, Peter Nunez, Esq.
• Auditor, Valerie Lourdes, CPA
• Fundraising consultant, Jane Sofas, CFRE
• Investment manager, Sylvia Grant
(Sample)
About the Board
Reading List• Bylaws
• Board policies
• Board biographies
• Prior year’s annual audit
• Budget
• Annual report
• Strategic plan
• Case statement
(Sample)
About the Board
Board Calendar• Board meetings / dates
• Fundraising events / dates
• Chief executive performance evaluation / date
• Annual retreat / date
• Annual audit / date
(Sample)
Section 4
BoardRoles andResponsibilities
Board Roles and Responsibilities
Board FunctionOrganizational Governance
• Authority
• Accountability
Board Roles and Responsibilities
Key Roles of the BoardSet Organizational DirectionProvide OversightEnsure Necessary Resources
Board Roles and Responsibilities
Board RoleSet Organizational Direction
Responsibilities:▪ Participate in regular strategic planning
(every three years)
▪ Determine organization’s mission
▪ Set the vision for the future
▪ Establish organizational values
▪ Set major goals and develop strategies
▪ Approve operational or annual plans
Board Roles and Responsibilities
Board RoleEnsure Necessary Resources
Responsibilities:▪ Hire capable executive leadership
▪ Ensure adequate financial resources
▪ Promote positive public image
▪ Ensure the presence of a capable and responsible board
Board Roles and Responsibilities
Board RoleProvide Oversight
Responsibilities:▪ Oversee financial management
▪ Minimize exposure to risk
▪ Measure progress on strategic plan
▪ Monitor and evaluate programs and services
▪ Provide legal and moral oversight
▪ Evaluate the chief executive (annually)
▪ Evaluate itself (every two to three years)
Board Roles and Responsibilities
Individual Board MemberResponsibilities
Act in Accordance With Legal StandardsDuty of Care
▪ Stay informed and ask questions
Duty of Loyalty▪ Show undivided allegiance to organization’s welfare
Duty of Obedience▪ Stay faithful to the organization’s mission
Board Roles and Responsibilities
Individual Board MemberResponsibilities
• Participate in the governance of the organization
• Work on committees and task forces
• Volunteer services to the organization outside of their board work
• Serve as ambassadors to the community
Board Roles and Responsibilities
Individual Board MemberResponsibilities
Participate in Fundraising Activities• Make a personal financial contribution
• Provide names of potential donors
• Visit funders
• Write thank-you notes
• Attend fundraising events
• Act as a resource to director of development and chief executive